UK government criticised over Equitable Life
The UK government has come under fierce criticism with regards to the Equitable Life saga which the High Court now believes was the subject of inadequate regulatory oversight for more than 10 years. Equitable Life was forced to close its doors to new business back in 2000 after it was revealed that the company was unable to pay out on guaranteed annuities which had been written many years before.
Despite instigating a report by the Parliamentary Ombudsman, the UK government on the whole ignored the findings of this report which suggested that the government had been guilty of maladministration on more than 10 occasions and should in fact have seen the situation emerging. Despite the report coming from within Parliament, the UK government only recognise five of these findings and rejected calls for full scale compensation for those who lost out.
This new ruling by the High Court could see more Equitable Life customers stepping forward for compensation which many believe is long overdue. However, the High Court also confirmed that the UK government was perfectly legal in deciding to only compensate those who lost significant funds rather than a full scale compensation for all involved. This is an issue which will not go away and one which is proving very embarrassing for the UK government.
Share this..
Related stories
Banking complaints rise by 7% in six months
05/09/2014 The Financial Ombudsman has announced that banking complaints have risen by 7% in the last 6 months. The Financial Ombudsman (FOS), which is an independent service in the UK for settling disputes between businesses providing financial services and their customers, have released their latest data showing complaints to financial businesses including high street banks and big insure...
Read MoreWill With Royal Bank of Scotland ever escape the stench of failure?
Since Royal Bank of Scotland hit the buffers last October there have been many changes at Scotland's leading bank although there have been many negative headlines across the world. Only in the midst of a recession was the culture and cost base of the bank opened up to the public, with many analysts and experts astounded at the way in which the operation had been run.
We saw Sir Fred...
How do you define excessive fees?
As the ongoing bank charges debacle continues we have today seen the emergence of a possible similar type of situation in the letting agency market. A judgement today, which ruled that excessive fees charged by many letting agencies across the UK can be reclaimed over a 14 year period, has caused many consumers in the UK to consider how you define excessive fees.
While many believe...
Chip And Pin Fraud On The Increase
News that police have broken a major crime ring in the Midlands has brought to light a new and frightening trend in the area of fraud. It has been found that fraudsters and criminal gangs are targeting chip and pin machines in a variety of retail outlets - with garages among the more popular. While the police are unsure of the figures involved they believe that significant amounts of money have...
Read MoreWho will follow the Skipton's move?
News that the Skipton Building Society has activated a relatively unknown get out clause in mortgage arrangements put in place since 2002 has caught the market by surprise. The decision to effectively rewrite all mortgage arrangements on the standard variable rate since 2002 will see the rate rise from 3.5% to 4.95%. But who will be next to follow? Now that the Skipton Building Society has effe...
Read More