Swinton £7m mis-selling fine

One of the largest insurance retailers on Britain's high street has been fined over £7m for mis-selling monthly add-on insurance policies. The Financial Conduct Authority (FCA) also disciplined Swinton over its aggressive sales strategy.

£7m Swinton fine 'sends very clear message' to industry

The chief executive of consumer charity Which? has backed the £7.38m fine handed to insurance giant Swinton over its mis-selling of monthly add-on insurance policies.

It's good to see the FCA handing out a hefty fine, which sends a very clear message to the insurance industry that mis-selling won't be tolerated.

As part of its review of the insurance industry the FCA should scrutinise how sales incentives are offered to staff in-store and how online marketing and product information is presented to customers.

– Which? executive director, Richard Lloyd

Read: FCA warned insurance industry last week over add-ons

Read: Swinton 'prioritised profit' over customer service

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FCA warned insurance industry last week over add-ons

by - Former Business Editor

The Financial Conduct Authority (FCA) warned the insurance industry last week that they were looking carefully at monthly add-on insurance policies to customers.

Over 650,000 consumers were affected in the Swinton mis-selling case.

Read: UK insurance retailer Swinton fined over £7m

Read: Swinton 'prioritised profit' over customer service

Swinton 'prioritised profit' over customer service

Insurance retailer Swinton "prioritised profit" over customer service, according to the Financial Conduct Activity (FCA), which issued a £7,380, 400 fine to the group over its mis-selling.

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.

– Tracey McDermott, FCA’s director of enforcement and financial crime

Read: UK insurance retailer Swinton fined over £7m