Land of Leather Fined Over Loans Insurance

A UK retailer has been fined over mis-selling loans insurance, the Financial Services Authority (FSA) has said.

Land of Leather now faces a penalty of £210,000 for putting customers at risk of buying unsuitable Payment Protection Insurance (PPI).

The firm's chief executive, Paul Briant, has also been fined £14,000 for allowing his sales team to perform the illegal practices between May 2006 and February 2007.

PPI covers loan repayments in the event of the borrower facing an unexpected event which would put their finances in jeopardy, such as being made redundant or becoming seriously ill.

The FSA found that, in many cases, the insurance was sold to loans borrowers who were ineligible to make a claim - due to insufficient checks having been made on them by staff.

Director of enforcement at the watchdog, Margaret Cole, said: "Firms must not sell PPI unless they have appropriate systems and controls in place to ensure that their customers are treated fairly.

"We are determined that firms should change their behaviour in selling PPI and the fines against Land of Leather and Mr Briant show our determination in this area."

The PPI sector is worth around £5 billion per year in the UK.