The Financial Services Authority has today imposed a public censure on Eastern Western Motor Group (EMWG) for failures relating to its sale of payment protection insurance (PPI) in connection with vehicle finance agreements.
The FSA stated that EMWG had failed to “organise and control its regulated business effectively”, citing examples of inadequate recording of the PPI sale on customers' files and failing to provide customers with a statement of the total price for the PPI policy.
FSA Director for Enforcement Margaret Cole said: “The sale of PPI is a priority for us due to the high potential risk for consumers in the way this product is sold. EWMG's failings, particularly those regarding the statement of price, created a risk of consumer detriment.” He added, “We have taken a number of enforcement actions relating to PPI recently and there will be more to follow.”
The number of PPI policies sold by EWMG was low and the firm had sought independent compliance advice prior to FSA supervision interest, indicating an intention to comply with FSA requirements.
The FSA has previously fined two firms over deficient PPI selling practices Regency and Loans.co.uk. Two other cases have recently concluded where problems relating to PPI also featured Capital Mortgage Connections and Home and County Mortgages. Other PPI enforcement cases are pending.
