1-FCA carried out a review of 13 insurance firms and 30
intermediaries
2-Paying in instalments often results in interest payments - but
many customers don't realise this
3-More than half of home insurance customers pay in instalments
Customers
buying home and car
insurance comparison online are not always offered clear
information about their payment options and the different costs associated, the
UK financial regulator warned today.
When
households buy insurance online, they are often given the choice of either
paying for a full year upfront, or paying in monthly instalments.
However
many do not realise that by opting for instalments they are likely to have to
fork out for an interest charge as well, pushing up the overall cost of their
purchase, the Financial Conduct Authority found.
The
FCA today published the findings of its review into 13 insurance firms and 30
intermediaries, including four price comparison websites, that it launched
after it was concerned customers were not getting a fair deal when shopping
online for general insurance products.
It
said the investigation showed that some providers were making it difficult for
customers to compare the cost of paying upfront versus in installments.
‘Consumers
should expect clear information about the payment options available to them,’
Linda Woodall, acting director of supervision at the FCA said.
[Source
: http://www.thisismoney.co.uk/money/bills/article-3076456/Insurance-customers-don-t-realise-pay-instalments-says-FCA.html]
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