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20 December 2018

The Competition and Markets Authority (CMA) has published its response to the Citizens Advice super-complaint on excessive prices for disengaged consumers. The super-complaint covers several markets, including insurance, cash savings and mortgages. It said:

“The issue of longstanding customers being charged more for some financial products than new customers is a priority for the FCA. The FCA welcomes the CMA’s review of this important issue and agrees that harmful practices should be tackled robustly. We will continue to engage with the CMA on this as we consider how to act on its recommendations.

The FCA has ongoing work on cash savings, mortgages and general insurance (GI) pricing practices looking at how to improve outcomes for consumers, including those who are long-standing. We will consider all options to achieve this, including price interventions where appropriate.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA, commented:

‘The treatment of long-standing customers remains a priority for the FCA. We have worked closely with the CMA since they received the super-complaint. We will continue to do this. It is important that this issue is tackled and harmful practices are stopped.

‘We expect firms to look after the interests of all customers and treat them fairly, whether they are new or longstanding. Where we have concerns about conduct by firms, we will explore all options to address this using the full range of our powers.”

For the full story, please click here to visit the FCA’s website.

By David Petty

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