The Financial Services Authority (FSA) has fined five motor retailers for selling Payment Protection Insurance (PPI) without checking its suitability for customers.

The fines, which totalled to over more than £175,000 were for “serious breaches” linking to the insurance product, which is sold along loans for motorbikes and bike insurance.

According to the FSA, several firms were selling Payment Protection Insurance and in some cases did not even check whether the customer would be entitled to claim. The fines are part of the watchdog’s crackdown on Payment Protection Insurance, which has recently been highlighted for widespread mis-selling.

Margaret Cole, who is the FSA director enforcer commented: “Motor retailers that sell Payment Protection Insurance have to meet the same standards as the rest of the financial services industry. All firms selling PPI must treat their customers fairly, including taking proper steps to make sure sales are suitable and customers are eligible to claim on the policy.

Cole furthered her statement: “PPI remains a top priority for the FSA in 2008 and beyond. Where we discover PPI failings, we will not hesitate to take tough action and impose higher penalties.”

The firms that were found to be guilty paid fines ranging from £28,000 to £61,600. The FSA said that all the firms investigated cooperated and some have now even stopped selling the product.