Retailer fined by FSA for payment protection insurance failures

Mon, 19 May 2008

Furniture retailer Land of Leather has been fined £210,000 by The Financial Services Authority (FSA) for failing to properly administer the sale of payment protection insurance (PPI) .

The retailer was fined because its staff were allowed to sell PPI on loans without adequate monitoring or training in place to guarantee that it was being sold fairly.

The financial watchdog said that although Land of Leather became authorised to sell PPI in May 2006, it did not make sure that all of its sales force were fully trained to sell the products until November 2006. Also, PPI continued to be sold in its 90 stores without any effective check on its staff until February 2007.

FSA director of enforcement Margaret Cole said: "Firms must not sell PPI unless they have appropriate systems and controls in place to ensure that their customers are treated fairly." She added that retail firms, where selling general insurance was not their primary business, would be held accountable to the same regulatory standards as the rest of the financial services industry.
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