GECB fully accepts responsibility for how the policies are sold."
It added: "GECB is continuing to take steps to ensure that no customer has lost out financially, and is honouring claims that would otherwise be rejected because of an exclusion."
GECB's main business is providing credit finance through branded store cards, credit cards and sales finance.
If they do not buy in the shop, customers are contacted at a later date by GECB's sales staff.
This despite a finding by the FSA that GECB failed to review and amend procedures for selling insurance despite its own evidence of widespread non-compliant selling practices.
Deficiencies in GECB's training and monitoring processes were also identified.
GECB is the seventh firm to be hit following the discovery of poor PPI sales practices.
Yesterday's fine against GECB could have been as high as pounds 870,000, but the firm qualified for a 30% discount by agreeing to settle early.