FSA forced to delay payment protection insurance changes
Under immense pressure from the financial services industry the Financial Services Authority (FSA) has today confirmed that the consultation period regarding the potential mis-selling of payment protection insurance will be extended by a further six weeks. This is a blow to the consumer sector where a number of customers have already stepped forward alleging they were mis-sold payment protection insurance by various financial institutions.
There have been a number of changes to the initial FSA proposals to rectify perceived problems in the system but it is the revelation of a potential compensation bill between £700 million and £1.2 billion over the next five years which has shocked the FSA. It is also believed that customers who have not complained, but may well have been mis-sold payment protection insurance in the past, could be eligible for compensation in the region of £1 billion-£3 billion.
While there is no doubt that changes need to be made with regards to the payment protection industry and the way in which this insurance is sold, the FSA has been forced back to the drawing board by the power and strength of the financial services industry. It is likely that proposals at the end of the consultation period could be a significantly watered-down version of the initial plans.
Insurance comparison websites are failing customers
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PPI complaints soar at taxpayer funded banks
It has been revealed that taxpayer funded banks such as Lloyds TSB and Northern Rock have been receiving substantial complaints from customers regarding their PPI sales. This particular type of loan payment protection insurance has received significant criticism from both customers and regulators alike and the industry watchdog has already issued a number of warnings. However, Lloyds TSB, Northern...Read More
Over a million Brits drove uninsured last year
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Aviva backtracks on £1 billion payout
Last July saw insurance giant Aviva announce plans to distribute £1 billion of orphan assets amongst its policyholders in what was seen as a groundbreaking move for the sector. However, Aviva has today withdrawn the offer which would have seen around £1000 forwarded to each with-profits policy holder in these very difficult economic times. The company has claimed that falling stock market valuat...Read More
Car insurance trips to bring down driving costs
With the recent rise in the price of petrol keeping the cost of driving high, motorists have been advised to look for savings elsewhere, with a review of their car insurance policies likely to save them money.According to a survey undertaken by American Express, just 57 per cent of drivers have shopped around to find the best car insurance deal, despite the fact that one in five claimed that risin...Read More