The Financial Services Consumer Panel welcomed today's
Treasury Committee Report on endowment mortgages. The Report
recognises many of the issues which the Panel has been concerned
about for some time, and highlights some key areas where
action needs to be taken.
The Consumer Panel agrees with the Committee that there
needs to be cultural change within the financial services
industry to avoid similar misselling problems in the future.
The Committee's suggestion that this will require a fundamental
change in the current system of commission based fees provides
a practical and stimulating contribution to the debate about
treating customers fairly. The emphasis in the report that
firms should communicate better with consumers and deal
more fairly with complaints is also welcomed by the Consumer
Panel.
The Consumer Panel also welcomes the Committee's recognition
of the "failure of anyone to take responsibility for providing
simple, commonsense independent advice". It is pleased that
the Committee recognises the Panel's call not just for information,
but for unbiased help in making decisions. So the Panel
fully endorses the Committee's call for a mechanism to deliver
low cost or free generic advice to consumers and sees this
as an integral part of the Financial Capability strategy,
which it looks forward to discussing further with the FSA.
The Panel also looks forward to further discussions with
the FSA on how it continues to press firms to deal appropriately
with consumers and their complaints, and its role in helping
consumers address their shortfall and achieve redress where
appropriate.
Ann Foster, Chairman of the Panel said:
"The financial services industry has much to learn from
this Report. It is yet another call for the interests of
consumers to be put at the heart of their business. The
industry should respond to this if they wish to restore
consumer confidence in their industry. "
A full list of Panel news releases, publications and consultation
responses can viewed at the Financial Services Consumer
Panel website at: www.fs-cp.org.uk
April 2004
Source: FSA
