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.
Cost of botched home improvements up £6m
The cost of amending botched home maintenance work has surged in the last three months, it has been claimed. According to figures from the government advice agency Consumer Direct, the number of complaints it has dealt with over the last three months has dipped slightly from 19,335 to 19,075. However, the value of these complaints has surged by £6 million, forcing thousands of people to make cost...Read More
Is the Royal Bank of Scotland set to be nationalised?
There are fears this evening that the UK government will need to nationalise the Royal Bank of Scotland after the share price collapse. Despite the government increasing its stake to 70% and promising to keep the business afloat via various guarantees it would appear that UK investors are not willing to give the company the benefit of the doubt. Despite receiving £32 billion of taxpayer's money o...Read More
Equitable Life chief executive urges policyholders to accept compensation
Chris Wiscarson, the chief executive of Equitable Life, has today stepped into the mix with regards to the ongoing compensation claim being handled by the UK government. It is believed that customers lost in the region of £4 billion - £4.8 billion when Equitable Life was forced to renege on a number of promises on some of its investments. However, the chief executive of the Equitable Life believ...Read More
Equitable Life sufferers to receive compensation
The government has finally come clean with regards to the shocking saga of the collapse of Equitable Life. Many thousands of UK investors lost substantial amounts of money when the former insurance company collapsed after a bid to reduce its mortgage guarantee liabilities. The announcement of a compensation scheme administered by the government comes with an apology from Treasury Minister Yvette C...Read More
Northern Ireland car insurance under investigation
A report by the Consumer Council has confirmed the shocking find that car insurance in Northern Ireland is costing consumers in excess of £136 million a year more than any other area of the UK. On average it is estimated that an extra £300 a year is added to annual cover premiums with more and more of the population now unable to afford insurance.
Surprisingly, the hardest hit are...