Making sure consumers get a fair deal is at the heart of everything we do. In order to get a fair deal, consumers need to be informed about what they’re buying, they need to know how one provider performs against the other and understand what makes one product better than the rest.
With Unemployment Insurance it has, in the past, been impossible for consumers to work out whether they’re getting a good deal. Lenders and credit providers dominate this sector and for too long, have taken advantage of their monopoly by over-charging for cover, mis-selling policies to unsuspecting customers and providing minimal information which is littered with jargon and small print.
Mindful of the saying ‘knowledge is power’ we have launched an online editorial news service that provides an unrivalled level of Unemployment Insurance information to consumers. It will equip those who are interested in purchasing cover with the tools to make an informed decision about who to buy from and give existing policyholders an insight into how their provider is performing within the sector. Not all who profess to have their customers interests at the heart of their business really do!
We have for years championed the cause for consumers, urging credit providers with their point of sale advantage to treat customers fairly. This online news service is another tool in consumers’ armoury. It will highlight the latest developments in this sector, enable consumers to challenge the sales patter of their credit provider, avoid them paying over the odds for cover that may be unsuitable for their needs and galvanise them into sourcing cover from a more ethical, independent provider.
For instance, credit providers should no longer be selling single premium Unemployment Insurance – where the cost of the policy is added onto the loan amount and interest charged on both. It’s been a common practice of lenders for years – nearly 70% of policies are sold this way – and now the Competition Commission and Financial Services Authority has called for it to stop.
Barclays and Lloyds recently challenged the Competition Commission’s ruling that forbids lenders to push their Unemployment Insurance cover at the time the loan is taken out? For years, lenders have wrongly implied it is a condition of the loan and taken millions of pounds from customers as a result. Barclays and Lloyds know the writing’s on the wall for this ‘cash cow’ so are delaying the date the ruling comes into force.
The Financial Ombudsman Service in its Annual Review reported Unemployment Insurance mis-selling and singe premium complaints had tripled in a year, from 10.652 in March 08 to 31,066 this year. Chief Ombudsman Walter Merricks lambasted the six largest financial services groups who were responsible for over half the claims, saying they had treated customers ‘nothing short of dismal’.
Lenders are unlikely to share this information with their customers which is why we will. We believe consumers should be aware of how the companies they spend their money with are behaving – after all actions speak far louder than any ‘marketing speak’.
To do this, we have put together a team of writers who have years of experience in the Unemployment Insurance sector. Between them, they will keep consumers informed of developments as they occur, detailing the highs and lows. We are confident that the level of coverage and news content offered by our writers and researchers will help consumers make the right choices when it comes to Unemployment Insurance and avoid them succumbing to dodgy deals, courtesy of less scrupulous firms.
Despite its poor reputation, where properly sold, Unemployment Insurance provides an invaluable financial safety net for those suffering hardship due to a loss of income because of redundancy. It makes tax-free monthly payments for up to a year ensuring loan, mortgage, credit card and wider bill commitments are met. In this current economic climate, it’s vital consumers have all the facts before them, in order to effectively recession-proof their finances.