Calls for action on Swinton Insurance |
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| Economy | |
| Written by Gary Howes | |
| Wednesday, 28 October 2009 | |
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The FSAs fine on Swinton Insurance amounts to a tenth of the revenue accrued on misselling.
Swinton Insurance has been fined £770,000 by the Financial Services Authority (FSA) which found the broker's sales of Payment Protection Insurance to be flawed. Consumer watchdog Which? has however come out strongly against the light fine arguing that more action needs to be taken. Which? personal finance campaigner, Vera Cottrell, says: “This is a truly shocking case. As an insurance broker, Swinton is supposed to give tailored advice to its customers. Instead, it saddled thousands of people with unnecessary and unsuitable insurance. “Customers should get an automatic refund. Too few people are likely to claim back £15 or £20, which would mean Swinton is getting let off lightly, especially given the fine imposed by the FSA is just a tenth of the revenue it generated from PPI sales.” “What’s more, we think the FSA should take action against the senior management responsible for this systematic breach of the rules.” The FSA said that over the 16 months in question, Swinton's selling technique automatically included PPI in motor and home insurance quotes without finding out if the customer wanted or needed it.
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