MSE News: PPI refunds due on half a million Swinton policies

Former_MSE_Natasha

This is the discussion thread for the following MSE News Story:

"Hundreds of thousands of consumers who took out debt insurance via broker Swinton are to receive refunds for misselling ..."

Read the full story:
PPI refunds due on half a million Swinton policies

The two threads have been merged to avoid duplication. Thanks to dunstonh for the original post.

dunstonh

News just released. May be useful for some of you (expect more companies to be hit on single premium):

The FSA has fined high street insurance broker Swinton Group £770,000 for serious failings in their advised sales of single premium payment protection insurance.

Swinton must also refund over 480,000 PPI policies, held by 350,000 customers.

Between December 2006 and March 2008 the FSA found that the firm’s PPI sales process was flawed.
PPI was automatically included in insurance quotes without first establishing that the customer had any real demand or need for the PPI cover. The FSA says this resulted in unacceptable levels of non-compliant sales.

Swinton failed to make it clear that PPI was optional and did not properly disclose the cost of PPI at the point of sale.

The cost was bundled within the initial insurance quote and Swinton failed to disclose, before the sale completed, that the policy only cost £1.21. The remaining £15 to £20 charge was a fee taken by Swinton.

The FSA says Swinton’s PPI customers will now be able to get a full refund. Swinton will also pro-actively review previously rejected claims and pay compensation where appropriate.
Swinton accrued approximately £7.8m from its PPI sales before the regulator forced it out of the PPI market in March 2008, when the failings came to light.
By settling at an early stage of the investigation Swinton qualified for a 30 per cent reduction on the full fine, which would have been £1.1m.

FSA director of retail enforcement and financial crime Margaret Cole says: “These were deliberate breaches. Swinton was fully aware it should establish a customer’s need for PPI before recommending it, yet nearly half a million policies were sold to customers who didn’t necessarily require them.

“Swinton’s PPI sales fell a long way short of our requirements and the firm clearly failed to treat its customers fairly. This penalty, the remedial action, and Swinton’s departure from the PPI market - along with our recent announcement outlining the FSA’s tougher measures for regulating PPI – serve as a shot across the industry’s bow to remind it to play fair, or not play at all.”


source: http://www.moneymarketing.co.uk/1001078.article?cmpid=MME01&cmptype=newsletter

jillemily

Hi
I had car insurance with Swinton during the time in question, up to October '08 but have since moved house. How do I make sure I can claim? If they are contacting all previous customers then my address details that they have are not correct.

Thank you
Jill

marshallka

jillemily wrote: »

Hi
I had car insurance with Swinton during the time in question, up to October '08 but have since moved house. How do I make sure I can claim? If they are contacting all previous customers then my address details that they have are not correct.

Thank you
Jill

Jill, I don't think this is car insurance that it means, I think it is only PPI, unless you mean PPI on a the finance for a car.

Eit, Jill I was wrong, you were correct here.

cozlw

Looking forward to getting home just so that I can check my documentation, iv had car and home insurance from Swinton's for the past 2 years... I paid car insurance upfront (so dont think this is covered) however home insurance is paid monthly.

marshallka

cozlw wrote: »

Looking forward to getting home just so that I can check my documentation, iv had car and home insurance from Swinton's for the past 2 years... I paid car insurance upfront (so dont think this is covered) however home insurance is paid monthly.

I am almost sure (someone correct me if I am reading it wrong!!!) that this only applies to PPI insurance.
Editted to - sorry was wrong.

cozlw

http://www.moneysavingexpert.com/news/reclaim/2009/10/half-a-million-in-line-for-swinton-ppi-refund
The quote by Wendy Alcock in the link above suggests that monthly car premiums are included.

shooby1

just come off the phone to swinton we are owed £15 on a commercial vehicle ins from 07/08 but apparently letters are coming out to everyone

marshallka

cozlw wrote: »

http://www.moneysavingexpert.com/news/reclaim/2009/10/half-a-million-in-line-for-swinton-ppi-refund
The quote by Wendy Alcock in the link above suggests that monthly car premiums are included.

YOU ARE CORRECT:eek:

Everyone with a loan, credit or store card, and now monthly paid car and home insurance too, needs to urgently check if they were missold the cover and reclaim.":beer: The PPI Swinton missold was designed to cover monthly direct debit payments for home or motor insurance, as when you pay in installments, you're effectively given a loan.

shooby1

spoke to the local branch they said i had £15 in ppi on ins but they gave me a number to ring to claim, well i rang them and in fact there was 3 policys and i have £52.50 on its way out to me in around 14 days RESULT:beer: the guy on the phone was lovely and says i dont have to do anymore just phoning them was enough to get the claim done easy peesy:money:

marshallka

shooby1 wrote: »

spoke to the local branch they said i had £15 in ppi on ins but they gave me a number to ring to claim, well i rang them and in fact there was 3 policys and i have £52.50 on its way out to me in around 14 days RESULT:beer: the guy on the phone was lovely and says i dont have to do anymore just phoning them was enough to get the claim done easy peesy:money:

Thats good. Let us know when you receive it.;)