Seven million UK residents due CPP refunds

Credit cardsHave you purchased a credit card and identity protection policy since 14th of January 2005? If so, you could be one of seven million people in the UK eligible for a refund, due to mis-sold protection products.

The Financial Conduct Authority, the Card Protection Plan Limited (CPP), as well as 13 high street banks and credit card issuers, have reached an agreement, which will see consumers who were wrongly sold a CPP product, get compensated.

Exactly how much money those being refunded might get back will depend on the product they purchased, and the amount of time they had it for. However, the average customer can expect to receive £185.

Source: uSwitch.com

Add-on insurance to be put under the microscope

car-insurance-costThe Financial Conduct Authority (FCA) is to take a closer look at so-called ‘add-on insurance’, to check if it is being sold in a fair manner.

Add-on insurance is insurance that is offered at the point of sale of for example holidays, or a car – and they can often be marketed quite aggressively.

Some of the things the FCA will be investigating is whether customers are made aware that they have a choice and can shop around; whether the insurance represents good value for money; and if the consumer is clear on what the insurance does (and doesn’t) cover.

Read the full story on BBC News.

Restrictions to be imposed on payday loan interest rates

We recently blogged about the rise in payday loans, and calls by the Office of Fair Trading for loan firms to treat customers more fairly.

Well now the Government has announced that it will change the law to allow for restrictions to be imposed on the interest rates that payday loan providers can charge.

Currently, consumers who take out a payday loan can end up paying a huge interest rate – up to 4000% – which can easily lead to getting further into debt, with serious consequences.

Following rising concerns about the nature and consequences of these loans, ministers are set to amend the Financial Services Bill, so that the planned Financial Conduct Authority will have the power to limit charges.

Read the full story at: BBC.co.uk

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