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<p>Government is aware that there have been examples of the mis-selling of packaged
accounts and action has already been taken.</p><p> </p><p>The Government expects financial
services firms to treat their customers fairly, according to the FCA’s Principles
for Business. Where a customer feels this has not been the case, the Financial Ombudsman
Service plays a valuable role in providing consumers with a swift and effective means
of resolving disputes. An effective Ombudsman enhances consumer confidence. This is
beneficial for financial markets and for the providers of financial services and products.</p><p>
</p><p>In 2013, the FCA introduced new rules on packaged bank accounts. These were
designed to help customers understand whether the product was right for them. Firms
are now required to establish and record whether customers are eligible to claim for
each of the insurances in the package. They are also now required to send annual statements,
prompting customers to review their eligibility and whether the products continue
to meet their needs.</p><p> </p><p>The FCA then conducted a thematic review of packaged
bank accounts in 2016 and found that there were weaknesses in firms’ complaint handling
procedures. The FCA then conducted a further review of these complaint handling procedures
and published their findings in July 2017. They found that real improvements had been
made, but made some further recommendations on how firms could improve their processes
further.</p><p> </p><p>As with all financial services products, Government works closely
with the Ombudsman and the financial services regulators to ensure that current legislation
continues to protect consumers.</p>
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