Insurance
Swinton offers PPI refund to 350,000 customers
(GUARDIAN) - Insurance broker Swinton is to refund more than 350,000 customers who bought payment protection insurance (PPI) after the City watchdog found it guilty of serious failings in the way it sold the cover, it was announced today.
The firm, which has been fined £770,000, will contact the holders of more than 480,000 motor and home insurance policies bought between December 2006 and March 2008 to offer them a refund of the premium paid for the cover, which offers a payout if a policyholder is made redundant or is unable to work through sickness or accident.
The move follows an investigation by the Financial Services Authority (FSA) which found that Swinton was not checking whether customers had any real need for the cover before selling around £7.8m worth of single premium PPI policies.
In addition, the FSA said the broker had not made it clear that PPI was optional and did not properly disclose the cost at the point of sale.
The cost was bundled in with the initial insurance quote and Swinton failed to disclose that although customers were paying £15 or £20 for their policies, the cover only cost £1.21 with the remainder being taken by the broker as a fee.
Discussion
No comments for “Swinton offers PPI refund to 350,000 customers”
Post a comment