Turner wants FSA to have more power to protect bank customers

The reputation of banks, and the confidence that consumers have in these financial institutions, has plunged over recent years, since the onset of the global credit crisis in 2007. With this in mind the chairman of the UK’s financial regulator, the Financial Services Authority, has called for the authority to be given greater powers to protect bank customers.

Lord Turner said that the FSA needs greater powers in order to protect consumers. The FSA is now set to launch a discussion paper based on the protection of bank customers. The debate will be centred around how the FSA could help, and what sorts of measures it could take in order to protect customers.

Officials from the FSA said that they want to find ways to take action to protect bank customers earlier on rather than having to wait until a number of complaints have been made before any action is taken. Some of the measures that the FSA is likely to look at will include the banning of some financial products, and a cap on the fees that are being charged on a variety of other financial products.

Lord Turner is set to argue that the FSA, or its replacement agency if it is disbanded, should be given greater powers to give bank customers the protection that they want and need. This comes following a surge in activity at the FSA, which has been cracking down on insider dealings, and has enforced a greater number of fines over the recent years.

Referring to the debate one FSA spokesperson said: “The debate will be about the types of things we do, different product regulation. Rather than waiting until lots of consumers have had to make complaints, can we take action earlier?”

Tags: cap, replacement agency, financial, confidence, agency, onset, paper

Consumer White Paper – Protection For All Consumers

The consumer White Paper, which outlined proposals to but a stop to unscrupulous lending by credit card companies, also contained measure to strengthen the rights of ALL consumers- those who feel ripped-off or conned. Read more

Tags: MP Kevin Brennan, Credit card, better deal, paper, rogue traders, Trading Standards Institute

Non-disclosure ‘more common in paper applications’

The tendency not to disclose information about one’s medical history and lifestyle is more common among those filling out paper insurance applications than those who submit them over the phone or computer, according to AXA.

With paper applications, non-disclosure accounts for 5.78 per cent being declined, whereas non-disclosure only affects 3.4 per cent of electronic applications and 1.23 per cent of phone applications, the insurer found.

In electronic applications, non-disclosure is less common because certain answers prompt more questions.

Mike Taylor, Chief Underwriter for AXA, said: “What this research shows us is that tele-underwriters’ knowledge combined with our expert underwriting system allows the relevant questions to be asked and hugely reduces the risk of non-disclosure.

“All these cases of non-disclosure were found at underwriting stage, so we were able to correct the applications and underwrite accordingly to make sure the consumer was properly covered.”

Meanwhile, a recent AXA survey found that employees use approximately five and a half days per year sending text messages.

Tags: non-disclosure, insurance applications, paper, underwriting stage, electronic applications

How does your age affect your premium?

As many UK motorists are aware there are a range of factors which come into play when companies decide the rate premium you pay. The first step of this process, at the application stage is to take all your details – which the company will do with a paper based form or over the internet. Read more

Tags: service, paper, young person car insurance, assessment, Disaster Accident, system, claim, risk