|
The Consumers' Association has condemned the complacency displayed during Yesterday’s Treasury Select Committee hearing on endowments by the leaders of an industry that holds consumers' financial welfare in the palm of its hand.
The Treasury Select Committee's inquiry into endowments was told by the FSA yesterday that the shortfall could reach as much as £30 billion. In calculating the figure, the FSA assumed that 5.3 million policies would have an average shortfall of £5,500 each.
The financial watchdog had previously estimated up to only 3.5 million households could be facing shortfalls.
The Consumers’ Association calculates the figure as 5.041 million people after a poll of endowment holders.
Despite a number of serious accusations by the members of the Committee, the industry failed to acknowledge its full responsibility for endowment mis-selling and the economic crisis looming because of endowment shortfalls.
Louise Hanson, Head of Campaigns, Consumers' Association, said: "This was hardly a sparkling performance. The entire industry needs a reality check. Tales of good advice procedures are unlikely to wash with the millions of consumers mis-sold.”
"It is shocking that despite clear evidence by the FSA, the FSA Consumer Panel and the Consumers' Association, only two companies were willing to accept some responsibility for mis-selling.”
|
Get
this news on your website !
Sponsored listings: