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Goon but not forgotten

Paul Lothian(Money Marketing, December 12, 2002) is spot-on – some consumers will claim they were misled regarding low-cost endowment risks recommended by the Consumers&#39 Association rather than follow the original CA guidance to increase premiums.

The FSA, far from encouraging honest intermediaries, supports cheating consumers.

Its predecessors told me a decade ago that filling up endless reams of paper was more important than helping clients faced with repossession. The prototype bureaucrat, Eccles, on the Goon Show, said he knew the time, he had it written on a piece of paper.

Today&#39s Goons are not so funny, they threaten liberty, the future of financial services, press freedom and economic success.

Compensation culture is the outcome of giving the FSA judicial powers so that fraudulent claimants avoid interrogation before a district judge. Claims are made against insurers one stop away from bankruptcy which imperils savings and pensions. The money is either paid out of the savings of others or by higher premiums such as the critical-illness cover hike.

Manufacturing is in steep decline. The overseas payment gap is partially closed by financial services. Why not just saw off the branch you are sitting on?

Someone has to kill the compensation culture before all consumers suffer.

New year resolutions? First, help the CA return to unbiased research. Second, press for the least bureaucratic replacement to take over the FSA after Davies. Third, find a unifying industry leader to lead a campaign against “costless” compensation and to reduce FSA powers. Fourth, don&#39t let the blighters get you down and come out fighting for a great 2003.

Roy Bennett

Hackbridge, Surrey


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Critical premiums climb at Swiss Life

Swiss Life is increasing its critical-illness premiums by up to 20 per cent and is no longer offering guarantees on stand-alone policies.The move follows a general trend in the marketplace, which over the last few months has seen rivals such as Norwich Union raise rates by as much as 40 per cent.But Swiss Life says […]

New Star trio distribute income

New Star Investment Funds has established the New Star distribution fund, which is designed to deliver high income and capital growth over the long term.The fund invests 60 per cent to 65 per cent in bonds, with the remainder in equities. Initially, there will be 60 holdings in the portfolio, but this may increase to […]

FSA has let down society&#39s needy

I want to tell you a story, in fact, three stories, about:•A lady who lives in London. She is 76 and has nobody to pay her life insurance premiums to.•A man who lives in Lincoln, is 84 and has been told that he cannot pay his premiums to his wife&#39s savings plan.•Mike, who lives in […]


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