FSA Bends in The Wind
The Financial Services Authority (FSA), has given discounts of £4M on fines imposed on banks, building societies, mortgage firms and stockbrokers over the past year.
The firms (eg Nationwide, Capital One and Norwich Union) had been found guilty of serious rule breaches ranging from mis-selling of payment protection insurance (PPI) to failing to adequately safeguard the personal details of customers.
The discounts offered are in the region of 30%, in return for promising to co-operate and not challenging the FSA's findings at tribunal.
Which? is far from impressed, and accuses the FSA of "putting the interests of the industry over those of consumers".
The FSA has decided to bend in the wind as a result of the fight it had with Legal & General in 2005, over its endowments mis-selling case.
L&G successfully appealed against the size of the fine imposed on it.
The FSA is showing excessive weakness, it neglects the fact that were a firm to complain about the size of a fine it would receive an enormous amount of negative publicity during the tribunal.
By offering such large discounts, the FSA has let the insurance and banking industry have its cake and eat it.
Showing posts with label nationwide. Show all posts
Showing posts with label nationwide. Show all posts
Sunday, January 20, 2008
Monday, December 10, 2007
Underwater
Underwater
Scotland on Sunday reports that two of the UK's largest endowment companies, Standard Life and Norwich, now have a staggering 1.4 million endowment policies underwater.
Guardian, which sold endowments for Nationwide, refused to take part in the survey. A spokeswoman for the company claimed that the omission was due to "an administrative oversight".
The report goes on to state that 90% of Norwich Union's 764,609 policyholders are now receiving red letters, while at Standard Life the proportion is 88%. At Friends Provident, 89% are in the red.
It's going to be a bleak Christmas for endowment policy holders.
Scotland on Sunday reports that two of the UK's largest endowment companies, Standard Life and Norwich, now have a staggering 1.4 million endowment policies underwater.
Guardian, which sold endowments for Nationwide, refused to take part in the survey. A spokeswoman for the company claimed that the omission was due to "an administrative oversight".
The report goes on to state that 90% of Norwich Union's 764,609 policyholders are now receiving red letters, while at Standard Life the proportion is 88%. At Friends Provident, 89% are in the red.
It's going to be a bleak Christmas for endowment policy holders.
Thursday, September 14, 2006
Nationwide and Portman To Merge
Nationwide and Portman To Merge
Nationwide and Portman building societies announced on Tuesday that they plan to merge. They claim that they intend to provide a "compelling alternative to the big retail banks".
Portman members will receive a booklet explaining the planned merger, before the building society's Spring 2007 AGM. They will be asked to vote on the proposals. Nationwide members do not have anything to do.
If the vote goes in favour of the merger, it is planned to be finalised by September 2007.
Qualifying members of Portman will receive a pre-tax windfall worth a minimum £200, if the merger goes ahead. Only members who had a minimum of £100 in savings, or a balance of £100 on a mortgage, at the close of business on 11 September will qualify.
Nationwide members will not receive a windfall.
Nationwide and Portman building societies announced on Tuesday that they plan to merge. They claim that they intend to provide a "compelling alternative to the big retail banks".
Portman members will receive a booklet explaining the planned merger, before the building society's Spring 2007 AGM. They will be asked to vote on the proposals. Nationwide members do not have anything to do.
If the vote goes in favour of the merger, it is planned to be finalised by September 2007.
Qualifying members of Portman will receive a pre-tax windfall worth a minimum £200, if the merger goes ahead. Only members who had a minimum of £100 in savings, or a balance of £100 on a mortgage, at the close of business on 11 September will qualify.
Nationwide members will not receive a windfall.
Wednesday, May 10, 2006
Prudential Time Bar
Prudential Time Bar
The Prudential is, according to the Association of British Insurers (ABI), the last major life assurance company to introduce time bars to their endowment policy holders wishing to complain about shortfalls on their endowment policies.
The ABI last year estimated that around 2.7 million households in Britain have an endowment policy that is needed to pay off all or part of a mortgage, and that over 80% face a shortfall.
ABI spokesman Malcolm Tarling said that:
"Time-barring will help focus people's minds. The longer people wait to file a legitimate complaint, the harder it is to establish the facts."
The Prudential says that it will write to 110,000 customers to tell them about the new, six-month deadline for complaints.
Legal & General and Nationwide Building Society have also introduced time barring in the last two months.
Not surprisingly the insurance companies want to bring the matter to a close, as they are the ones who are being hit by the claims from their endowment policy holders.
This sorry pathetic mess could be sorted out at the stroke of a pen, if the insurance companies acted responsibly and underwrote these useless underperforming products which they foisted on the British public back in the 1980's.
The Prudential is, according to the Association of British Insurers (ABI), the last major life assurance company to introduce time bars to their endowment policy holders wishing to complain about shortfalls on their endowment policies.
The ABI last year estimated that around 2.7 million households in Britain have an endowment policy that is needed to pay off all or part of a mortgage, and that over 80% face a shortfall.
ABI spokesman Malcolm Tarling said that:
"Time-barring will help focus people's minds. The longer people wait to file a legitimate complaint, the harder it is to establish the facts."
The Prudential says that it will write to 110,000 customers to tell them about the new, six-month deadline for complaints.
Legal & General and Nationwide Building Society have also introduced time barring in the last two months.
Not surprisingly the insurance companies want to bring the matter to a close, as they are the ones who are being hit by the claims from their endowment policy holders.
This sorry pathetic mess could be sorted out at the stroke of a pen, if the insurance companies acted responsibly and underwrote these useless underperforming products which they foisted on the British public back in the 1980's.
Thursday, March 23, 2006
Legal & General U Turn
Legal & General U Turn
Legal & General have announced that they will tell over 600,000 endowment policyholders that they have only six more months to claim compensation, if they believe they were mis-sold the products.
Up until now, L&G now had been one of the few large endowment policy providers to rule out "time-barring" customers.
L&G has started to send out letters to their policy holders this week, covering the new time bar rule and informing the policy holders about their projected returns/shortfalls on polices.
Only Prudential and Nationwide Building Society are keeping an open commitment to consider complaints.
The clock is ticking.
Legal & General have announced that they will tell over 600,000 endowment policyholders that they have only six more months to claim compensation, if they believe they were mis-sold the products.
Up until now, L&G now had been one of the few large endowment policy providers to rule out "time-barring" customers.
L&G has started to send out letters to their policy holders this week, covering the new time bar rule and informing the policy holders about their projected returns/shortfalls on polices.
Only Prudential and Nationwide Building Society are keeping an open commitment to consider complaints.
The clock is ticking.
Monday, September 12, 2005
Campaign Launched
Campaign Launched
Gail McEwan from Scotland is planning to mount a nationwide campaign for justice on behalf of hundreds of Scots, allegedly missold mortgage endowments by solicitors.
She has been awarded £700 in compensation by the legal services ombudsman, after the Law Society of Scotland bungled her own complaints about a policy she was sold by a Glasgow firm of lawyers.
However, she still has a shortfall which she wishes to be made good.
She plans to pressure MSPs, and the Scottish Executive, for fresh legislation which would give consumers who were missold endowments the same rights of redress as customers of financial services firms.
The Herald has the full details here.
I wish her the very best of luck.
Gail McEwan from Scotland is planning to mount a nationwide campaign for justice on behalf of hundreds of Scots, allegedly missold mortgage endowments by solicitors.
She has been awarded £700 in compensation by the legal services ombudsman, after the Law Society of Scotland bungled her own complaints about a policy she was sold by a Glasgow firm of lawyers.
However, she still has a shortfall which she wishes to be made good.
She plans to pressure MSPs, and the Scottish Executive, for fresh legislation which would give consumers who were missold endowments the same rights of redress as customers of financial services firms.
The Herald has the full details here.
I wish her the very best of luck.
Thursday, September 02, 2004
Back To The Future
Which has just issued a report, the findings of which could have been based on the experiences of the owners of endowment policy holders who were sold these underperforming white elephants in the 1980's.
The sad, and rather alarming, feature of the report is that it is based on research carried out by Which, this year.
Which checked out approximately 40 financial advisers, in well known banks and building societies; only three of these "professionals" offered satisfactory advice.
The "revelation" of the report was that advisers concentrated on selling life assurance, rather than on giving advice.
Sound familiar?
Remember when we were told that the smart way to cover a mortgage was with an endowment policy?
Among those "professional" institutions visited were Abbey, Halifax, HSBC, Lloyds TSB, NatWest, Nationwide and Northern Rock.
It seems that the advisers did not make it clear that they were only able to recommend in house mortgages. This is a clear breach of the Mortgage Code.
In other words, despite the endowment policy mis-selling debacle (the biggest financial scandal of the century), it seems that not a single lesson has been learned by our trusted and respected financial institutions.
Based on this, are you confident that the financial institutions will handle your endowment complaint in a professional and unbiased manner?
I suggest you sign my petition, if you are worried.
Which has just issued a report, the findings of which could have been based on the experiences of the owners of endowment policy holders who were sold these underperforming white elephants in the 1980's.
The sad, and rather alarming, feature of the report is that it is based on research carried out by Which, this year.
Which checked out approximately 40 financial advisers, in well known banks and building societies; only three of these "professionals" offered satisfactory advice.
The "revelation" of the report was that advisers concentrated on selling life assurance, rather than on giving advice.
Sound familiar?
Remember when we were told that the smart way to cover a mortgage was with an endowment policy?
Among those "professional" institutions visited were Abbey, Halifax, HSBC, Lloyds TSB, NatWest, Nationwide and Northern Rock.
It seems that the advisers did not make it clear that they were only able to recommend in house mortgages. This is a clear breach of the Mortgage Code.
In other words, despite the endowment policy mis-selling debacle (the biggest financial scandal of the century), it seems that not a single lesson has been learned by our trusted and respected financial institutions.
Based on this, are you confident that the financial institutions will handle your endowment complaint in a professional and unbiased manner?
I suggest you sign my petition, if you are worried.
Saturday, July 24, 2004
It seems that the Nationwide Building Society has a had a change of heart; regarding its treatment of people who have complained about mis-sold endowment polices, after the three year deadline.
The Treasury Select Committee, investigating the mis-selling of endowment policies, made it clear a month ago that the time bar rule should be discarded.
However, until recently the Nationwide had been disbarring late claimants. Now, following the Treasury Committee ruling and FSA rule changes in respect of warning letters, the Nationwide are reported to be writing to everyone they have time barred offering to investigate their complaints.
The Treasury Select Committee, investigating the mis-selling of endowment policies, made it clear a month ago that the time bar rule should be discarded.
However, until recently the Nationwide had been disbarring late claimants. Now, following the Treasury Committee ruling and FSA rule changes in respect of warning letters, the Nationwide are reported to be writing to everyone they have time barred offering to investigate their complaints.
Thursday, May 20, 2004
The Scandal That Won't Go Away
Despite hoping that the endowment mis-selling scandal will go away, life assurers are now having to face the same financial misery that the 6 million of us who bought these non performing white elephants have been enduring for the last few years.
Evidence of this emerged yesterday, as Nationwide has announced that it has tripled its provisions for compensating endowment mortgage customers; as complaints of mis-selling continue to escalate.
Fortunately for Nationwide, they do have a 21% increase in profits to cushion the effect.
Nationwide has raised its provision from £11M to £34M.
They admit that it is "possible that the value of some investment policies will not be sufficient to fully repay mortgages on maturity".
Quite!
Don't fear for Nationwide's future, its pre tax profits for year end April 2004 were £426M.
Despite hoping that the endowment mis-selling scandal will go away, life assurers are now having to face the same financial misery that the 6 million of us who bought these non performing white elephants have been enduring for the last few years.
Evidence of this emerged yesterday, as Nationwide has announced that it has tripled its provisions for compensating endowment mortgage customers; as complaints of mis-selling continue to escalate.
Fortunately for Nationwide, they do have a 21% increase in profits to cushion the effect.
Nationwide has raised its provision from £11M to £34M.
They admit that it is "possible that the value of some investment policies will not be sufficient to fully repay mortgages on maturity".
Quite!
Don't fear for Nationwide's future, its pre tax profits for year end April 2004 were £426M.
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