FCA publishes insurance premium finance review: FCA has published its thematic review of premium finance for general insurance. The review focused on online sales of car and home insurance and included insurers, intermediaries and comparison websites. The review found:
- that it is often hard for customers to see the price difference between paying up front and paying by instalments;
- that many firms did not provide the representative example including all the required details when they offered to provide regulated credit or acted as a credit broker;
- a wide range of APRs in the samples it reviewed, which emphasise the importance of customers needing to understand the difference between projections; and
- various other disclosure failings, including that credit brokers sometimes did not disclose the name of the provider or details of their fee.
FCA expects firms to consider their business in light of the report, and to review it for compliance with relevant FCA rules and the requirements of the Consumer Credit Act. It plans also direct engagement with some firms, which may lead to enforcement action. (Source: FCA Publishes Insurance Premium Finance Review)