Carcraft owner fined £91k over PPI sales
THE financial services watchdog has fined Rochdale-based UK Car Group – parent company of Carcraft – £91,000 for failings in the way payment protection insurance was sold.
In a statement the Financial Services Authority said UKCG has failed to “deal appropriately with concerns raised in internal audits” regarding the sales of PPI by Carcraft.
It added: ” UKCG failed to take reasonable steps to ensure the suitability of advice given to customers. Therefore, UKCG fell short of the standards the FSA expects of authorised firms, and in particular what the FSA expects of firms using appointed representatives.”
The family-owned nationwide chain of car supermarkets also sold consumer credit agreements, essentially personal loans, to allow customers to buy cars. In soem cases PPI was sold too.
The failings relate to the monitoring of PPI sales between April 1 2007 and the end of September 2008.
Tom Spender, the FSA’s head of retail enforcement, commented:“The risk of consumer detriment arising from the sale of PPI has long been highlighted by the FSA and this case emphasises the need for authorised firms, whether acting in their own right or as principals of appointed representatives, to ensure that their own compliance systems and controls are robustly monitored and implemented effectively.”
UKCG agreed to settle the case at an early stage of the investigation so qualified for a 30% discount.
The FSA said without the discount UKCG would have been fined £130,000. UKCG ceased PPI sales in 2010 and has paid redress where appropriate.
Carcraft said it was “disappointed” that the FSA has found it necessary to take action “on an issue which occurred several years ago”
A spokesman said: “Carcraft decided to stop offering PPI in June 2010. The FSA had no cause for concern about the design and structure of Carcraft’s systems and controls in relation to PPI selling, and stated that Carcraft’s sales model and standard documentation were sound. The amount of the fine was reduced to reflect the business’ complete cooperation with the FSA and willingness to agree a settlement .
“Carcraft is continuing to strive for excellence in all areas with a focus on delivering exceptional customer service, and has recently achieved RAC accreditation for all its cars.”
