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.
Aviva policyholders set for £500 million payout
In February last year Aviva, the UK insurance giant, offered to pay out £1 billion to policyholders who agreed to give up their future rights to a share of the company's orphan fund. The fund in question was valued at £4.2 billion in February 2008 although it has since fallen to a value of £1.2 billion. Due to a legal challenge by a number of policyholders, the original scheme was put on hold a...Read More
Halifax issues warning after Met Office predicts storms
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Payment Protection Insurance Plans Under Fire
In a move which many believe will see the end of the Payment Protection Insurance (PPI) sector the Competition Commission has indicated a number of possible changes which will give power back to the consumer. The changes involve forcing retailers to advise clients that they can buy their PPI cover elsewhere, price caps and annual subscriptions which need to be agreed by the consumer.
Insuring your home office
As more and more people in the UK are attracted by the idea of working from home, whether working for themselves or an employer, there are many potential pitfalls and considerations to take into account. Aside from the fact that you will need quiet, clear space to work from there is also the need to ensure that your business equipment and business records are not only secure but well insured.
ZÃ¼rich Insurance hit by record £2.28 million fine
ZÃ¼rich Insurance, one of the more popular insurance companies in the UK, has today been hit by a £2.28 million fine from the FSA after admitting losing confidential details relating to 46,000 UK customers. This is the largest fine handed it a UK based insurance company and perfectly illustrates the seriousness of the charges which the company has admitted. It was found that confidential inf...Read More