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.
Travel insurance – what is the best type of insurance for you?
Going on holiday can be very stressful to plan, especially if you have a family. As well as arranging passports, online check-ins, remembering tickets and changing your money, it can be hard to remember everything you need to travel. One thing really important not to forget is your travel insurance.
What is travel insurance?
When travelling overseas it is really important...Read More
Royal Bank of Scotland on the verge of Direct Line sale
Despite the fact that Royal Bank of Scotland had initially wanted to sell its Direct Line insurance division in 2012 via an IPO it is believed the company is on the verge of announcing a trade sale very soon. There is speculation that figures such as Warren Buffett, the investment guru, have already stepped forward to show their interest in what is a quality operation. It seems rather strange t...Read More
Equitable Life back in the headlines
Equitable Life is again back in the headlines with news that a number of pensioners who suffered enormous losses when the company effectively reneged on policy payments are to approach the UK government about an increased compensation program. The Equitable Members Action Group will write to various ministers in the coalition government to demand an increase in the rumoured £500 million compensat...Read More
Perilous pooches uninsurable?
Pet owners who have a pit bull may find it very difficult to obtain a pet insurance policy, as many large insurance companies are now refusing to provide cover for 'dangerous dogs'.Both Tesco and Churchill are among companies that will not offer pet insurance to any breeds listed under the Dangerous Dogs Act.A spokesperson for Churchill Pet Insurance said: "Certain dog breeds which are considered...Read More
Biba urges "sensible precautions" for winter drivers
Motorists heading out over the cold winter period are being advised to ensure they take "sensible precautions" to reduce the risk of an accident.Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association (Biba), said that motorists "need to take care" and "make sure their cars are ready for winter".He explained: "The darkness, the wet roads and the icy...Read More