Firm fined 91000
Carcraft has been fined by the Financial Services Authority (FSA) for not providing enough detailed advice when selling payment protection insurance (PPI) to its customers.
The UK Car Group (UKCG) now has to fork out £91,000 for its wrongdoing, as the company should have taken measures to check staff were correctly informing buyers of the PPI conditions, according to the regulatory body. Customers were also sold personal loans, including PPIs, so that they had the funds to buy their chosen vehicle.
CC Automotive, trading as Carcraft, conducted the sales that breached FSA's rules from April 2007 to September 2008. It is thought that buyers were sold policies depending on the information they were given by the salesperson, which came from multiple lenders.
The FSA discovered that sometimes the credit was divided between two different providers, meaning it was "imperative" that customers were completely informed of the services they were buying.
Following an internal report on the company over PPI sales, in which Carcraft failed to provide sufficient evidence of the advice it passed on to customers, the FSA concluded that buyers who bought into their policies were not properly informed and thus issued the penalty.
published: 04/05/2012 17:00:00