Mis-sold policies result in huge fine for Swinton
According to the FCA investigation, Swinton mis-sold a range of add-ons including personal injury cover, home emergency cover, and motor breakdown cover, without providing full details regarding the policies themselves, their terms and conditions or the rules regarding cancellation. Moreover, the insurer was found not to have communicated to customers that the add-ons were merely optional extras rather than being integral parts of the main policy. The firm made nearly £93 million from the practice.
However, if one thing in this is to the insurer’s credit it is that it voluntarily reported its failings to the regulator – this was done following the appointment of a new chief executive at Swinton, Christopher Bardet, who carried out an audit of the insurer’s commercial operations.
“At the FCA we have been clear in our expectation that firms must behave in the interests of consumers,” said the FCA’s director enforcement and financial crime. “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.”
Swinton has apologised for its personal injury add-on and other cover sales tactics and set aside more than £11 million in order to compensate those customers affected by the mis-selling scandal.News