SELLING Payment Protection Insurance or other insurance products, as part of finance packages?
Then you must follow the rules – or else you will face heavy fines.
The sale of such products is regulated by the FSA. Business must therefore be FSA-accredited, if they are to sell such offers to customers. Penalties will ensue for businesses not meeting these standards, warns the NFDA.
Director Sue Robinson said: ‘Dealers that offer finance packages, including PPI, must make sure that they follow the rules laid down by the FSA.’
‘This will involve training staff so they can provide the right advice on the various products, and having the right systems in place to ensure that customers are sold the correct product most suitable to their needs.’
‘PPI is seen as a high risk product by the FSA, so requirements for businesses that offer it are more stringent than selling other insurance products. This has led to a number of dealers stopping PPI product sales, and concentrating on lower risk products, such as warranties and GAP.’