Land Of Leather Needs To Pay Penalty For Breaking PPI Rules

It has been revealed that a leading furniture retailer has been discovered at fault due to breaking rules and regulations over the sale of payment protection insurance (PPI) on personal loans.

Under government regulations it has been pointed out that the sales of such cover with loans, comprising the loans especially designed for those do not have their own asset or home that is tenant loans, must only be taken on by completely trained staff.

However, in a visit to Land of Leather carried out by the Financial Services Authority (FSA) it was discovered that this was not the case and that this had potentially left 58,000 customers at danger of purchasing inappropriate cover.

Accordingly the company has to pay penalty £210,000, with its chief executive Paul Briant ordered to pay £14,000 for his part in the break of regulations.

According to a spokeswoman at the FSA, "We are looking at tenant loans and PPI as a whole. As part of its work, the FSA is looking at retailers with loans on retail goods.

"PPI is a major area, and it's an area with very huge consumer loss. We will be doing a lot on it in the future as well."

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