HUNDREDS of motorists in south Manchester could be breaking the law after allegedly being sold bogus motor insurance by a Withington company.
Selective Insurance, based in Copson Street, is under investigation by the Financial Services Authority, the Government&apos;s regulatory watchdog, for selling insurance without its authorisation.
Without FSA approval the policies are not worth the paper they are written on and as such motorists are completely uninsured and will receive no financial support if they need to make a claim - affecting not only the policy holder but any other motorists involved.
They could also face criminal charges because under the terms of the Road Traffic Act 1988, it is illegal to drive on a public road without approved third party insurance.
Eleanor Hughes, spokesman for the FSA, said: "We are doing an investigation. It&apos;s a small company and we suspect that it&apos;s only Manchester-based drivers that are affected. The message is that it&apos;s not acceptable for businesses or individuals to offer financial services without permission to do so."
Selective Insurance is believed to be owned by Tom Brookes.
The offices where they have been based for the past eight or nine months are now in darkness and post has been left unopened for weeks. The FSA is now warning anyone who believes they purchased a policy from Selective Insurance that they must get alternative cover.
They should do this immediately and contact the organisation to help them with their investigation.
Ms Hughes said people could call the FSA to find an approved company: "It&apos;s really to protect the consumer to make sure they are getting service and they are not out of pocket if things go wrong."
She also said under these circumstances the FSA could seize the profits of a company in order to refund customers and in extreme cases the investigation could be handed over to the police to pursue criminal charges.
Selective Insurance were unavailable for comment.
To contact the FSA&apos;s consumer helpline call: 0845 606 1234.