Which? urges fine increase

The consumer campaigning group, Which?, has appealed to the City regulator to significantly raise the fines it exacts on companies found guilty of mis-selling in order to crack down on the financial services industry.

The consumer group announced it wants the Financial Services Authority to levy fines that are significant enough to worry institutional investors that own shares in the companies facing penalties. Which? feels that considerable penalties would persuade investors to compel financial services companies to prevent mis-selling.

Aug 10, 2005
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Lloyds TSB plc has allocated a further £110 million to compensate endowment policyholders. This is in addition to the £250 million which was set aside to pay compensation in 2003.

Lloyds TSB plc to impose a time bar on endowment policyholders that were mis-sold their policies in order to prevent them from making a claim

Reported in the Daily Telegraph December 2004

Mortgage endowment policyholders are collectively going to face a shortfall estimated at £ 40 billion

The average amount of compensation where a policy has been mis-sold is estimated to be £3,000
Source ABI (The Association of British Insurers) 2006