British car finance dealerships that have been handing out payment protection insurance (PPI) have been warned to make sure they are doing so in the correct and proper manner. The RMI National Franchise Dealers Association (NFDA) has stated that the Financial Services Authority (FSA) will be handing out significant fines to those who do not do this.
Motorists who require PPI advice should contact the NDFA for more information, the body claimed, adding that the rules are often more stringent than when other products are sold. Car insurance customers could find that this helps give them piece of mind when they take out such a deal.
Car dealers that offer payment protection insurance (PPI) as part of finance packages must ensure they follow the rules on sale of these products or risk incurring heavy fines. Sale of insurance products, such as PPI, is regulated by the Financial Services Authority (FSA). Businesses that sell or advise on insurance products must be accredited by the FSA. If businesses fail to meet the standards required they will be fined by the FSA.
"The NFDA is working with the FSA to ensure that the regulations are as effective as possible and that they benefit businesses and consumers alike," commented an NFDA official.