 Comparison websites for insurance products are failing to treat their customers fairly, an FSA review concludes. In a study of 17 comparison sites, the regulator says it found examples of both good and bad practice but says more must be done to provide consumers with “clear, fair and not misleading information”.
The FSA, which is set to launch its own comparison website for Payment Protection Insurance (PPI) later this month, has not disclosed which sites it reviewed, but says it found “mixed evidence” of the clarity, fairness and accuracy of information available to consumers.
The review follows earlier assessments in 2006 and 2007 - when the FSA concluded no immediate action, other than to follow the development of the market, was required – and responds to the continued growth of comparison sites.
Ed Harley, FSA head of financial promotions, says a big concern is sites’ focus on price to attract the consumer. |
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 The Financial Services Authority's chief executive says dual pricing by lenders does not contravene the principles of treating customers fairly.
Hector Sants made the assertion in a speech at The Building Societies' Annual Conference in Manchester.
He says: "If certain lenders decide to offer their direct customers cheaper deals, we do not see that customers’ best interests would be served by preventing this.
“However, we believe that a healthy market is one where consumers have a choice in how they purchase a mortgage, either direct or via an intermediary who can shop around and advise the customer to help get the right deal."
He adds: "We hope that the current market developments do not make it harder and more expensive for customers to get advice on what is one of the most important decisions of their lives.” |
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