View more on these topics

Consumers split over endowment &#39misselling&#39

WORDS 132


Consumers campaigners and regulators are split over the Financial Services Authority move not to launch a full-scale “endowments misselling” enquiry.


According to the FSA around 3m households will be forced to pay £40-50 per month as endowments have not produced enough to repay mortgages in full.


Around 60 per cent of the 10m endowment policies in force (held by 5m households) will suffer repayment shortfalls. For a £50,000 mortgage the regulator estimates those hit by shortfalls an extra £500 a year.


A Consumers&#39 Association spokesperson says: “Our research shows systematic misselling of endowments. We don&#39t think the industry should get away with these disgraceful practices scot-free.”


But FSA chairman Howard Davies says: “Endowment holders have on average done quite well in recent years, better than original projections.”


Recommended

FSA rejects endowment inquiry

Endowment mortgage misselling will not be subject to a full-blown inquiry as the Financial Services Authority granted the mortgage industry its Christmas wish.The industry feared the FSA would call for an investigation along the same lines as the multi-billion pensions misselling compensation.But campaigners attacked the FSA for ignoring their calls for an inquiry. Consumers&#39 Association […]

Bupa launches fixed price product

Bupa has launched a medical insurance policy with a fixed price in a bid to challenge consumer concerns on future increases.Bupa Fixed Price Cover will freeze subscriptions for either five or ten years, regardless of how many claims are made. Consumers can choose paying through a fixed monthly account or a one-off lump sum.But while […]

RBS shows Christmas spirit

Royal Bank of Scotland has brushed suggestions its hostile bid for National Westminster Bank are “inadequate”, “unrealistic&#39 and “high risk.”RBS showed Christmas goodwill responding to its target&#39s quips by saying it was “grateful for the prompt consideration of our offer and for identifying some of the issues relevant to any proposal presented to Natwest shareholders.”The […]

Hi-tech bonanza theory

A surge in technology funds investment can be traced to interest from private retail investors, according to the Association of Unit and Investment Funds.November&#39s figures from the Autif show a record inflow of £220m plus a 200 per cent rise in technology fund sales.In total £247m flooded into the global specialist sector, with 90 per […]

UK housebuilders remain a value trap – despite post-Brexit falls

Despite the sharp drop in housebuilders following the Brexit result, valuations in the highly illiquid market are still at elevated levels. And whilst some investors may take comfort from superficially low price/earnings multiples, are earnings sustainable over the long term, asks Holly Cassell, Assistant Manager of the Neptune UK Mid Cap Fund. Click here to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment