Swinton policyholders who took out monthly insurance with the firm have been told they might be eligible for compensation after the Financial Conduct Authority (FCA) found the insurance retailer guilty of mis-selling.
The regulator has hit Swinton with a fine of £7.38 million after judging its 'aggressive' sales strategy meant customers had not been treated fairly in its telephone sales of monthly add-on insurance policies.
Between April 2010 and April 2012, the firm generated an income of £92.9 million through its selling of personal accident, home emergency and motor breakdown policies.
However, the FCA has found that Swinton did not provide enough information to customers about the key terms of the policies and also failed to properly monitor its sales calls.
Swinton has already contacted over 650,000 customers it thinks may have been mis-sold a policy, but has asked any policyholders who believe they bought monthly cover as a result of mis-selling to contact them directly.
The firm has set aside £11.2 million to repay those customers who were mis-sold, of which £1.9 million has already been paid out.
"When selling monthly add-on policies, Swinton did not place the consumer at the heart of its business," said Tracey McDermott, the FCA's director of enforcement and financial crime. "Instead it prioritised profit."
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