The Financial Services Authority, the regulatory board for all financial services entities in the UK, issued a ‘public censure’ on a major Scottish car dealership yesterday.

Eastern Western Motor Group are the latest company to face problems in the widespread crackdown on payment protection insurance . The FSA censured EWMG over PPI sales on car finance arrangements, marking the first motor trade company to face restrictions. The motor industry is regulated when it comes to the sale of financial products.

Eastern Western has expanded significantly over the last few years, and now employs over 1000 people. The company has grown to become one of the largest finance operators in Scotland.

The FSA director for enforcement, Margaret Cole, said: The sale of PPI is a priority for us due to the high potential risk for consumers in the way this product is sold ... A clear statement of price is essential in order for a customer to be able to determine whether the PPI policy is the right product for them.

The company got off lightly compared to some other firms, who were fined heavily for PPI bad selling practices.