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.
Insurance premiums no longer varied according to gender
A European court of justice ruling, made in 2011, means insurance companies will no longer be able to vary premiums according to gender. The change will come into force on the 21st December 2012. Some insurers have not yet declared how much they plan to charge in the future but in most cases this will mean that women will be paying higher premiums than they currently do. Historically, femal...Read More
Royal Bank Of Scotland Eases The Pressure For Insurance Division Sale
News that the Royal bank of Scotland (RBS) has sold off a highly controversial basket of leveraged debt arrangements valued on the books at £4 billion has eased the short term need to offload the insurance division at a below market value price. The division had been expected to bring in at least £7 billion but recently this figure was downgraded to between £5 billion and £7 billion.
Drivers lie over claims to insurance companies
Millions of British motorists would lie to insurance providers to avoid jeopardising their claim, a new survey suggests.The study by Moneysupermarket found that 2.5 million drivers in the UK would bend the truth to ensure they received a payout.When asked what they would do if they had failed to lock their car properly leading to it being stolen, 26 per cent of motorists said they would resist tel...Read More
Simple ways to cut your car insurance
There is no doubt that all drivers in the UK dread their renewal date for car insurance as premiums continue to move higher and higher. However, there are a number of simple ways to reduce your car insurance premiums to a level which reflects your risk and your annual mileage. One of the best ways to reduce your car insurance premiums is to limit the mileage which you clock up each and every ye...Read More
LGA warns of significant risk of flooding for UK homes
The Local Government Association (LGA) has issued a warning to the UK government with regards to the risk of potential flooding for up to 50,000 homes across the UK. The LGA is deeply concerned that the situation which arose in 2007 could arise again as no progress has been made on promised changes. The problem back in 2007 related to surface water as much as direct rainfall with a number of drain...Read More