FSCP calls for changes to Consumer Rights Bill: FSCP has called for amendments to the Consumer Rights Bill, which is currently passing through Parliament. Concerning part 2 of the Bill, which is the relevant part for financial services because it introduces changes to the unfair terms regime, FSCP says that:

  • the exemption from the "fairness" test should apply only to the price agreed by the consumer at the point of entering the contract, and not to unknown future charges;
  • social, cultural and linguistic factors should be taken into account when determining what an average consumer is for the purpose of applying the "prominent and transparent" test for terms; and
  • the situation of mortgage prisoners, to whom the right to cancel offers no protection, should be added to the indicative list of unfair contract terms.

(Source: Consumer Panel Says Consumer Rights Bill Won't Work for Consumers)

Financial Ombudsman Service (FOS)

FOS publishes newsletter: The latest edition of Ombudsman News highlights FOS's plan for a record year of activity dealing with payment protection insurance (PPI) complaints. The newsletter also focuses on annuities and complaints against insurers relating to "winter weather" claims. (Source:Ombudsman News Issue 115)