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MSE News: PPI refunds due on half a million Swinton policies
Former_MSE_Natasha
Former MSE 672 Posts
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 ..."
The two threads have been merged to avoid duplication. Thanks to dunstonh for the original post.
"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
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.
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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
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
Eit, Jill I was wrong, you were correct here.
Editted to - sorry was wrong.
The quote by Wendy Alcock in the link above suggests that monthly car premiums are included.
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.