The FOS (financial ombudsman) has recently taken issue with the industry's regulator in that it thinks that lenders are knowingly trying to frustrate the ombudsman process. It says some lenders have been rejecting out of hand all consumer bids to recoup their losses, and in the year 2009 89 per cent of cases of peoples' mis-sold sickness insurance policy seen by the FOS were decided in favour of the consumer.
The financial regulator has been busy fining Payment Protection Insurance firms in many situations for not behaving towards customers equitably, plus the Competition Commission has investigated this sector and made requests on these lenders, also including prohibiting sales within a week of selling a credit card or loans and comprehensively prohibiting single premium polices.
The resolution of action brought in accordance with peoples' mis-sold sickness insurance policy will be binding and sets a precedent for future consumer legislation. What is important is that the consumer is totally recompensed for all the money which has been lost. The law in the UK is nowadays effectively established in opposition to the scoundrels who perform such malpractice.
It must be an awful point in time when you think about your mis-sold sickness insurance policy and the total waste of time and money it turned out to be. Happily, there are legal precedents that allow the redress of this wrongdoing and the restitution of your money. Such legislation exists to completely defend the rights of the customer.