Friday, 26 June 2015

Customers getting raw deal from unclear home and car insurance comparison sites, warns regulator



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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