Porta Verde Financial Services Limited has been fined £25,000 by the Financial Conduct Authority (FCA) after two of its appointed representatives (ARs) mis-sold insurance, often to elderly and vulnerable customers, between October 2010 and June 2012.
These companies used high-pressure sales tactics and misleading information to push consumers into buying insurance for satellite TV equipment, plumbing and drainage repairs.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “Porta Verde is responsible for the unacceptable sales tactics used by its representatives. Firms should be in no doubt that we will take action when they – or their appointed representatives – fail to treat their customers fairly.”
On one occasion a sales agent misled a customer’s carer to obtain permission to process payments. On another, a customer clearly thought he had been called by his satellite TV provider to discuss subscription fees. Despite his confusion, he was transferred to the agent’s manager and asked to purchase cover.
Acting on information from consumer complaints, the FCA’s predecessor body, the Financial Services Authority (FSA), insisted Porta Verde take steps to address the issue, or stop using these ARs.
Porta Verde failed to take the necessary action to correct the problem, or ensure its ARs communicated with consumers in a way that was clear, fair and not misleading.
Porta Verde settled at an early stage of the investigation, qualifying for a 30% discount. Without this discount, the FCA would have fined Porta Verde £353,800. Porta Verde, which is now entering into voluntary liquidation, provided evidence of financial hardship – the £25,000 penalty reflects Porta Verde’s total remaining financial resources.
