'Automatic renewal' shifts savers into poorer deals
A recent review by The Financial Conduct Authority (FCA) has found a worrying use of 'automatic renewal' by a number of financial providers of fixed-rate bonds and ISAs - resulting in savers being unaware that their savings had been moved to a new product, often with poorer terms that their original contract.
"This is yet another example of banks and building societies getting lazy off the back of a plentiful supply of relatively cheap funds and failing to act in the best interests of savers" says Adrian Smith.
16 out of 30 firms reviewed were found to have 'unfair' terms or practices ...
Fixed-rate bond savers unknowingly shifted into poorer deals
Consumers invested in fixed-term bonds and ISAs bought on the high street are being unknowingly rolled into new products offering poorer terms without being given the chance to move their money, the City watchdog has found.
The Financial Conduct Authority (FCA) has published an update from its thematic review into the automatic renewal of financial products, including fixed-term bonds and ISAs, as well as home and motor insurance.
The regulator said the review, which is due to finish in 2014, has already revealed some concerning behaviour from retailers of fixed-rate bonds and ISAs.
Always there to assist with advice and clarifications.Mr W - Solihull