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.
What will happen now that the PPI market has been opened up?
While the recent government announcement that payment protection insurance cannot be sold for up to seven days after a loan or credit card agreement has been signed has been welcomed by consumer groups, there is concern about who will actually "pay" for this potential loss of business. As with the bank overdraft charge saga it always seems that the customer is made to endure higher charges in due...Read More
Foreign car claims driven up
The number of insurance claims made against foreign vehicles by motorists in the UK has risen by 15 per cent over the last two years, according to new research.The Motor Insurers Bureau (MIB) reports that the amount of car insurance claims against cars from abroad now stands at 19,621, while the figure was just 17,032 two years ago.Following this news, uSwitch.com has said that it is increasingly...Read More
No loyalty points for car insurance
Almost 60 per cent of respondents to Moneysupermarket.com's most recent Rate Alert poll reported that their motor insurance premiums had risen by over £20 at the last renewal, with 13.3 per cent saying their new quote was over £160 more than last time.Yet the website's records show that discerning claim-free shoppers can instead save five per cent on last year's premium price by choosing a diffe...Read More
Another Potential Bidder For RBS Insurance Division Pulls Out
As D-day approaches for the submission of bids for the RBS insurance division, valued in the region of £7 billion, it seems that interest in the asset is faltering. Italian giant Generali is the latest potential suitor to pull out of the auction amid concerns that the first deadline, Wednesday this week, may well see only a small number of bidders come to the fore.
While there a...
Brits warned over lying to car insurers
Britons have been urged to come clean with car insurance providers or risk being barred from the roads if their fraudulent claim is discovered. In a poll conducted by moneysupermarket.com, people were asked how they would react in the event of their car being stolen as a result of it being left unlocked. Of the sample some 33 per cent said that they would lie to their car insurance provider rather...Read More