INSURANCE firms have been slammed for adding up to £51 a year to bills paid in monthly instalments.
Customers may also pay more for the initial premium in a practice called “double dipping”.
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The Financial Conduct Authority said monthly bill payers face APRs of 20-30 per cent, adding £19-£28 to home insurance and £35-£51 to car insurance costs.
With about half of such policies paid monthly in 2023, many customers are hit with these extra costs simply because they can’t afford annual payments.
Consumer group Which? director Rocio Concha urged the FCA to crack down on “bad practice”.
She said too many customers are forced into higher costs out of financial necessity.
Insurers claim the charges reflect the cost of the agreements.
But the FCA’s rules state that premiums must not be increased without a “reasonable basis”.
The Association Of British Insurers insists its members follow “fair and transparent” principles.
Earlier this year Which? revealed that some firms charge APRs comparable to credit card rates, with One Insurance Solution and The Insurance Factory imposing above 30 per cent.
The FCA also found motor insurance claims were subject to delays, lack of oversight on outsourced services and high complaint levels.
It is taking action against the companies involved.
FOOD CRUNCH
GROCERY bills are biting harder as food prices rise at their fastest rate in 18 months.
Inflation hit 5.2 per cent this month, adding an average £275 to annual spending, Worldpanel data showed.
Grocery spending rose 4.6 per cent in the 12 weeks to July 13, with online grocer Ocado leading growth at 11.7 per cent.
Lidl grew 11.1 per cent while leader Tesco saw a 7.1 per cent sales increase.
RANSOMS BAN
PUBLIC sector organisations including the NHS, schools and councils will be banned from paying ransoms to cybercriminals.
Security Minister Dan Jarvis pledged to “smash the cybercriminal business model” and safeguard essential services.
Businesses outside the ban must now tell authorities before paying ransoms.
The new rules come after attacks on Marks & Spencer and the Co-Op.
GOOD WORKS PAY OFF
THE WORKS is celebrating success in its turnaround strategy as profits surged 20 per cent to £8.3million.
The books and stationery retailer saw 6.4 per cent growth in like-for-like sales in its final quarter, driven by improved store standards and new products, despite a 2 per cent dip in annual revenues.
Online sales struggled but store sales led the charge.
Boss Gavin Peck highlighted strong trading in the new financial year, with sales up 5 per cent.
Shares jumped 9.4 per cent yesterday
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