FSA confirms 3 million payment protection insurance plans under review
The Financial Services Authority (FSA) has today confirmed that around 3 million people may well be eligible for compensation payments which could top £2 billion over the alleged mis-selling of payment protection insurance (PPI). So far the authorities have received in excess of 100,000 complaints regarding PPI and there are many more expected in the short to medium term.
The authorities have today issued new rules on how the flood of complaints should be handled and indeed what form and what size of compensation can be expected. This is a situation which many banks in the UK have attempted to delay and indeed a number of banks clubbed together to demand a review of the PPI ruling by the FSA. In simple terms, the FSA has introduced new rules which will come into play later in 2010 which will offer customers more information on PPI products, a cooling off period and the ability to look elsewhere for their cover.
However, there are many points of friction between the UK financial industry and the FSA over changes to PPI. Quite how these will impact upon the final ruling and future of PPI very much remains to be seen.
Folks with more green go for eco-insurance
While previously environmentally-friendly products have been seen as the preserve of hippies and bohemians, companies have found that people with a few more notes in the bank are now investing in more eco-friendly products. According to the Environmental Transport Association (ETA), the demand for products such as 'green' car insurance has risen recently as environmental matters come under the pol...Read More
Country residents 'not saving or taking out life insurance'
Many rural residents are not putting money aside in savings, insurer NFU Mutual has claimed.Research from the firm found that just 25 per cent of country dwellers are saving - while, by contrast, 20 per cent are spending more than they earn each month.This could lock the residents into a debt spiral, with the big spenders finding themselves unable to meet credit repayments.Moreover, 44 per cent sa...Read More
Royal Bank of Scotland caught between a rock and a hard place
The Royal Bank of Scotland is this evening looking at the possible sale of its prized insurance unit which has been one of the best performers over the last few years. While the timing of a possible sale could not be worse there are concerns that the group needs to increase its capital base for its traditional banking operations with 2009 expected to be as tough if not tougher than 2008.
Mortgage protection, otherwise known as mortgage payment protection insurance (MPPI), is a product designed to pay your mortgage repayments in the event that you lose your regular income. There are a variety of different types of mortgage protection insurance on the market, and they will all have different conditions within them. This type of insurance is not compulsory, although some loan prov...Read More
LV= launches new travel insurance policies
With summer fast approaching, LV= has announced the release of two new travel insurance policies. The insurance provider policies are for annual cover and for a single trip, with both providing medical cover for up to £10 million. Also included is personal possessions cover of £2,500, £5,000 for cancellation, £500 for loss of money, £250 to cover delays and legal expenses of up to £25,000. J...Read More