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.
Car insurance premiums increase by 40%
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Tesco announces new insurance partner
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Homeowners in line for £60 million PPI mortgage insurance refund
The Financial Services Authority (FSA) has today announced a new initiative which will see mortgage companies pay back up to £60 million to consumers who are being impacted by changes in mortgage PPI schemes. It was revealed that a number of companies have in fact increased the premiums associated with mortgage PPI arrangements while at the same time reducing the cover available as they became mo...Read More
Alastair Darling defends his national insurance increase
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Pet insurance 'crucial for vet fees'
Veterinary fees can cripple family finances unless people have adequate pet insurance, it has been claimed.Owners who do not insure their pets could face a "major problem" if treatment is needed, the British Small Animal Veterinary Association (BSAVA) has warned.The introduction of new treatments all the time means that vets' fees are now rising on an annual basis, meaning any treatment that is ne...Read More