Mis-selling controversial payment protection insurance (PPI) has led to five motor dealers being collectively fined more than £175,000.
The Financial Services Authority (FSA) said 2,175 customers may have been sold policies they would not have been able to claim on or which duplicated cover they already had.
those find are Chesterfield-based GK Group, George White Motors, which has a head office in Swindon, Ringways Garages in Leeds and Doncaster and Lanarkshire-based Park's of Hamilton.
PPI purportedly covers debt repayments if the holder is unable to work or loses their job, and has come in for heavy criticism. Consumer groups claim it is expensive and often sold to people who would never be able to claim on it.
The Competition Commission issued a damning report on the PPI market earlier this year in which it said consumers were being overcharged by £1.4bn a year due to a lack of competition in the market.
It warned that it was considering banning the sale of PPI alongside mortgages, loans and credit cards, adding that it may also introduce a price cap as a temporary measure to reduce the cost of the policies.
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