Member Article

Swintons fined £7.4m for policy mis-selling

Manchester insurance firm Swintons has been fined nearly £7.4m by the Financial Conduct Authority (FCA) for mis-selling policies between April 2010 and April 2012.

The high street insurer generated an income of £92.9m over the two year period, during which the FCA said they mis-sold personal accident, home emergency and motor breakdown policies.

Swintons were found guilty of not providing enough information to customers who bought policies and not properly monitoring its sales calls.

During the period investigated, the company was also found to have used an aggressive sales strategy at the expense of its customers.

The firm has allocated £11.2m to reimburse customers who were mis-sold policies, with £1.9m already paid out.

Over 650,000 customers have already been contacted by Swintons, who the firm thinks may have been affected, while any policy holders who think they have been mis-sold a product they must contact the firm directly.

Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “Swinton failed its customers. When selling monthly add-on policies, Swinton did not place the consumer at the heart of its business. Instead it prioritised profit.

“At the FCA we have been clear in our expectation that firms must behave in the interests of consumers.Today’s outcome shows our approach in action and will act as a deterrent for other firms tempted to put profit figures above the fair treatment of customers.”

Martin Wheatley, FCA chief executive added: “I recently told the insurance industry that we were taking a strong interest in the area of add-ons, and our first competition study will take a far-sighted view of the impact of current practice on consumers in this market.”

This was posted in Bdaily's Members' News section by Miranda Dobson .