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.
Overseas Car Insurance Is Hard To Follow
A report by Which? magazine has spotted the emergence of an alarming situation with regards to the hiring of cars when you are on business or holidays overseas. It seems as though the vast majority of those involved do not have a clue what cover the insurance offers, with many unaware of a range of excess payments which are activated in the event of an accident. Many people do not even questio...Read More
Flood Insurance Is Now Secure For Many
Despite comments earlier in the year suggesting that the insurance industry would take away flood insurance from many UK homes in high risk areas, it seems that the powerful Association of British Insurers (ABI) has agreed a compromise deal with the government. In return for speeding up investment in the flood defence systems across the UK, the ABI has given the authorities a guarantee that affor...Read More
'Variety' of ways to cut car insurance costs
Norwich Union has insisted that many people do not realise that there is a wide range of options available to them to help cut their car insurance premiums.The car insurance company has stated that one of the best ways to cut car insurance costs is to buy online.Erik Nelsen, a spokesperson for Norwich Union, explained: "There's a whole variety of things you can do to get your motor premiums down....Read More
Brit drivers over-rely on hearsay, car insurer warns
Britons who rely on received wisdom and hearsay about motor insurance cover rather than studying the small print of their policies are risking a severe financial hit, according to a car insurance provider. In a study conducted by swiftcover.com, 36 per cent of respondents assumed they would be covered in the event of a crash when they were behind the wheel of their partners or friend's car. In fac...Read More
No-claims analysis released by Sainsbury's
No-claims bonuses on home insurance policies should be made less confusing for the customer, a provider has said.Sainsbury's Finance has released new analysis, showing that around 75 per cent of such policies do not provide details on how the discounts work.Further, the provider said that eight per cent of the policies charge an extra penalty on those customers who make a claim during their discou...Read More