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UK: Insurers told to be clearer about hidden costs

By  |  May 11, 2015

Insurers are failing to explain the hidden cost of paying for cover in monthly instalments, with some customers paying interest rates of up to 75pc to spread the cost of their premiums, the financial watchdog warned on Monday.

The Financial Conduct Authority’s review of 43 insurance websites found that many providers or intermediaries in the £18bn-a-year car and home insurance market were not explaining the full cost or risks of spreading the cost of insurance.

The regulator said annualised interest rates for this kind of payment varied from zero to 75pc, with some also charging credit broking fees where a different firm was providing the financing.

 

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