In the latest controversy surrounding payment protection insurance (PPI) on loans, Land of Leather have been fined by the Financial Services Authority (FSA) for breaching regulations. The furniture retailer has been fined £210,000 after inadequately trained sales staff were allowed to sell PPI on loans. Its chief executive Paul Briant also received a personal fine of £14,000 for failing to oversee the sale of PPI by the company.
Although Land of Leather had been authorised to sell PPI in May 2006, this was on the proviso that all staff would be fully trained to sell PPI. Land of Leather had continued to sell PPI in its 90 stores nationwide without any check on its sales force until February of the next year.
As a result of the staff’s lack of training, 8,200 customers who took out PPI on an initial 12 month payment free period were then exposed to costs of as much as £720 for the PPI loan cover . Total premiums are estimated to stand at around £3.1 million.
Company Fined for Sale of PPI Loan Cover
Company Fined for Sale of PPI Loan Cover
Fri, 16 May 2008
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