You are here: Home - News -

FSA rejects Consumer Association’s report on endowment mis-selling

by:
  • 04/11/2002
  • 0
Intermediaries and the Financial Services Authority (FSA) have rejected reports by the Consumers Ass...

Intermediaries and the Financial Services Authority (FSA) have rejected reports by the Consumers Association (CA) that avenues of complaint for mis-sold endowment mortgage products are insufficient.

The CA and Which? magazine said it had only found one in six consumers with an endowment mortgage who felt the FSA was doing enough to tackle their problems.

Sheila McKechnie, director for the Consumers’ Association, said: ‘The FSA has committed the worst crime of all, it is guilty of complacency and arrogance. It has clearly failed to listen, understand and communicate people’s rights to compensation. As a result, millions of consumers will be badly let down on this issue. The FSA can no longer afford sit on its hands over the issue of endowment mis-selling. It must take effective action now to enable victims of mis-selling to get more information and claim compensation.’

But intermediaries have questioned the amount of mis-selling involved and suggested falling markets may be behind the rash of complaints that have been seen.

Jim Gillespie, director for adviser Independent Financial Services, felt that nine out of 10 times products had been sold properly and the implications of the product and costs involved explained.

He said: ‘You have to take the rough with the smooth and that is explained to people when they take out the products.’

A spokeswoman for the FSA rejected the claim that consumers had no access to vehicles of complaint. She said when policy re-projection letters began to be sent out in April this year the FSA’s factsheet on making complaints was included.

She said 23 firms were actively compensating consumers and although it was unfair to say the market had played host to blanket mis-selling.


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Doors wide open

Self cert is here to stay, and more lenders are now prepared to treatthem as they would other niche sectors

Close