NatWest forced to apologise for misleading insurance coverage supply

A single NatWest buyer took a stand when she located a number of false claims in a promotion for buildings and contents insurance

  Photo: PA

NatWest can be exposed for sending misleading promotional materials to clients. The proof has emerged just days right after the City regulator warned that economic companies have been falling quick of advertising specifications.

The Monetary Perform Authority (FCA) calls for all promotions to be clear, honest and not misleading. It advised companies to increase standards after reviewing one,500 economic promotions and obtaining some had been misleading. It is now investigating 227 promotions for products this kind of as payday loans, debt management companies and credit brokers.

It appears that other, much better-acknowledged firms also use sharp practices. This week a reader wrote to The Agenciesabout a property insurance promotion sent by NatWest.

Marjorie Hammond, from Shropshire, received a personally addressed brochure that explained: “We like to give our buyers specific treatment method. That is why we’ve made our Normal and Elite property insurance available to NatWest consumers only. Plus we’ve extra a special offer you on best: buy buildings and contents insurance collectively and you will get 30pc off.”

A table in the brochure mentioned personalized possessions taken outside the property – cameras, jewellery and bicycles – had been covered at no further cost.

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But when Miss Hammond spoke to NatWest, an adviser admitted the offer was obtainable to anyone and the private possession cover was an optional benefit which would price far more.

NatWest wrote to Miss Hammond to acknowledge the errors and said it would “adapt the marketing and advertising information in the potential so it is not miss-foremost (sic) for customers.”

A spokesman extra: “We have apologised for this misleading marketing and advertising materials and are searching at how we make confident this does not happen yet again.”

Miss Hammond stated: “I realise there are a good deal of rather doubtful advertising and marketing ploys around but I now wonder regardless of whether we can no longer believe in even the high street names.”

The FCA explained several problems it sees relate to ads for fee-paying out debt management companies that do not make it clear that companies are not free of charge, promotions that guaranteed companies will supply credit score regardless of customers’ situations and misleading claims about lenders’ curiosity prices.

Clive Adamson, director of supervision at the FCA, explained: “We feel that companies can do much more to guarantee monetary promotions meet the standards we would assume and will proceed to keep track of overall performance in this area.”

Have you noticed a misleading promotion? AgenciesFunds desires to hear from you. E-mail or write to 111 Buckingham Palace Road, London SW1W 0DT.