After a series of scandals, on the mis-selling of bundled insurance, (PPI being the biggest) ID fraud cover is now under the spotlight.
This time the focus is on Experian, whose ID protection is bundled in with the monthly membership for its Credit Expert service. Customers of Britain’s biggest credit agency may have been paying for years for insurance they did not know they could avoid. It is only in the small print at the bottom of the page that details are given of the cost of the insurance and nowhere on the website does it give the option to remove or cancel. As the sign-up button comes before you reach even the prominent explanations of what is covered, many customers would not be fully aware of what they are paying for.
Whilst on the subject of insurance thousands of households have overpaid premiums for home cover. In the 1990s, these people took out mortgages when lenders routinely insisted borrowers also signed up for costly cover. Conditional selling was so effective that decades later many homeowners are still paying for this poor value insurance. We recently learnt of one homeowner who estimated it had cost him £10,000 - he has filed a complaint with the Ombudsman and is awaiting its verdict.
And as the year end approaches like the Hazel O'Connor song says
"I opened up my eyes and saw to my surprise monsters in disguise wearing bowler hats and old school ties."
RBS bank announced 3rd quarter profits of £1.27 billion, this can only be described as more rampant greed as they are holding back £400m in order to cover potential costs in an FX market manipulation investigation. Add to this the LIBOR scandal and PPI and the banks seem to have been manipulating the 'free market' to their own advantage for years.