News

Swinton Pays Massive fine for PPI Mis-selling

Swinton, the high street insurance broker, has been fined £770,000 today and ordered to offer refunds to over 350,000 customers after the City regulator found “serious failings” in its sale of payment protection insurance (PPI).

The company has agreed to contact the holders of more than 480,000 motor and home insurance policies bought between December 2006 and March 2008 to offer them a refund of the premium paid for the PPI, sold to cover monthly direct debit payments if the borrower becomes unable to pay because of accident, sickness or unemployment.

Mobile Phone Contract Amendments

UK mobile operators need to do more to help customers who experience coverage problems, an advisory panel has said.

It recommends a "try before you buy" period in mobile contracts to enable customers disappointed by their new handset's coverage to switch operator.

The Communications Consumer Panel, which advises Ofcom, says about one-third of consumers and small businesses regularly experience coverage problems.

One operator said many factors "outside our control" could affect coverage.

Communications watchdog Ofcom recently pledged to investigate why there are such gaps around the UK.

New Consumer Credit Card Protection

Mr Brown said that ''sharp practices'' like increasing interest rates on existing debts without explanation, issuing unsolicited credit card cheques and relaxing credit limits without being asked should end.

His comments came in a podcast, released on the 10 Downing Street website and YouTube on the 80th anniversary of the Wall Street Crash, in which he pledged to reform the financial sector and restore growth in the UK economy by the end of the year.

Following Friday's announcement that the British economy shrank by 0.4 per cent in the third quarter of 2009 and was officially in the longest recession since records began, Mr Brown warned it would be ''suicidal'' to put recovery at risk by cutting spending now, as Conservatives advocate.

''Although there are signs that confidence is beginning to return in some areas, we need to be cautious,'' he said.