Land of Leather has been fined £210,000 for failing to ensure Payment Protection Insurance was sold fairly to customers taking out loans.
The Financial Services Authority (FSA) has fined the furniture retailer for allowing its sales force to sell controversial PPI on loans without proper training. The firm - which has 90 stores in the UK - also failed to monitor sales to ensure those people taking out PPI really needed insurance and whether they fully understood what they were paying for.
The FSA estimates that Land of Leather’s PPI failings exposed around58,000 customers to an "unacceptable increased risk" of buyingunsuitable insurance.
Land of Leather’s chief executive, Paul Briant, has also been fined £14,000 for failing to oversee the sale of PPI properly.
Margaret Cole, director of enforcement at the FSA, says: "Firms must not sell PPI unless they have appropriate systems and controls in place to ensure that their customers are treated fairly."
Following the investigation by the FSA, Land of Leather contacted certain customers and gave them the opportunity to reconsider whether PPI was suitable for them.
It has also agreed to contact more customers going forward.