Land Of Leather Hit With Massive Fine
In a move which is as much as shot across the bows of the sector as a direct hit at Land Of Leather, the company has been hit with a £224,000 fine for potentially mis-selling up to 58,000 cases of Payment Protection Insurance (PPI). Even though the headlines are not as bad as they seem, the underlying message is loud and clear.
While the figure of 58,000 was mentioned, this is not the actually amount who took out the insurance, just the number who were offered it. However, it seems that while the company itself was authorised to sell the PPI the staff who were actually advising customers were not. Despite being made aware of the situation it seems that the management of Land of Leather continued to allow unauthorised staff to offer their PPI service to up to 58,000 customers. By the time this was rectified the FSA had already decided that a fine was the only course of action as well as a serious warning for the future.
Surprisingly, part of the £14,000 of the fine was actually accredited directly to Paul Briant, the chief executive of the Company, for his part in the debacle.
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