Land of Leather fined over payment protection sales
Sofa retailer Land of Leather has been fined £210,000 by the Financial Services Authority for improperly selling payment protection insurance (PPI). The firms's chief executive Paul Briant was also personally fined £14,000 for failing to properly oversee the sale of PPI by the firm.
"Firms must not sell PPI unless they have appropriate systems and controls in place to ensure that their customers are treated fairly. We are determined that firms should change their behaviour in selling PPI and the fines against Land of Leather and Mr Briant show our determination in this area," Margaret Cole, the FSA's director of enforcement said.
"Retail firms whose primary business is not selling general insurance will be held accountable to the same regulatory standards as the rest of the financial services industry," Cole added.
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The FSA added Land Of Leather became authorised to sell PPI in May 2006, but it did not ensure that all of its sales force were fully trained to sell PPI until November 2006 and it continued to sell PPI in its 90 stores without any effective check on its sales force until February 2007.
As a result 58,000 customers faced an unacceptable increased risk of buying unsuitable PPI, the regulator said, though it found no evidence of widespread mis-selling.
