WiredGov Newswire (news from other organisations)
Citizens Advice responds to CMA's two year loyalty penalty update
Alistair Cromwell, Acting Chief Executive of Citizens Advice, responds to CMA's two year loyalty penalty update
“We’re pleased to see that, if current proposals are fully implemented, consumers stand to save more than £700 million a year in the insurance, mobile and broadband markets. As four in five people are still paying a loyalty penalty, it’s clear there’s still work to be done.
“We’re worried the FCA is only planning action in one of the three financial services markets we included in the super-complaint. We’re encouraged by the FCA’s bold proposals in the insurance market, which sets the bar high for other sectors.
“We agree with the CMA that the FCA should take action to support the 800,000 people facing ‘significant harm’ by paying the loyalty penalty in the mortgage market. But encouraging loyal customers to switch isn't an adequate remedy.
“In the savings sector, introducing Single Easy Access Rates (SEARs) was a strong proposal. It’s disappointing that this work has been paused, the FCA should implement SEARs once interest rates rise.
“Across telecoms, it’s good to see the CMA acknowledging that, while Ofcom has made progress in broadband, it has more work to do in protecting loyal mobile customers. Three has refused to make any changes and, though other major providers have signed voluntary agreements, these only stand to remedy £58 million of the £182 million of estimated harm each year.
“The economic fallout from the coronavirus pandemic continues to have a drastic impact on the finances of millions of people. It‘s essential that the FCA and Ofcom do more to stamp out this unfair practice, so loyal customers are not overpaying for essential services.”
Notes to editors
- Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
- Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
- The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
- Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
- Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
- For consumer advice, call the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 to talk in Welsh.
- We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.
- Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.
Latest News from
WiredGov Newswire (news from other organisations)
LGA responds to Public Accounts Committee report on achieving net zero05/03/2021 15:25:00
Cllr David Renard, Environment spokesman for the Local Government Association, responded to a Public Accounts Committee report on achieving net zero
CIPD - Half of employers don’t have a financial wellbeing policy, despite financial impact of COVID-1905/03/2021 14:25:00
The CIPD calls on all employers to recognise both the moral and business case for taking more responsibility for their employees’ financial wellbeing
Furlough extension must last as long as needed to secure the recovery04/03/2021 16:05:00
TUC General Secretary Frances O’Grady yesterday commented on the government’s announcement that the job retention scheme will continue until the end of September, with reduced rates of support from July.
CBI Northern Ireland responds to the Budget04/03/2021 15:33:00
CBI Northern Ireland yesterday responded to the Budget.
At least 1 in 7 children and young people has lived under stay-at-home policies for most of the last year, putting mental health and well-being at risk – UNICEF04/03/2021 14:40:00
At least 1 in 7 children – or 332 million globally – has lived under required or recommended nationwide stay-at-home policies for at least nine months since the start of the COVID-19 pandemic, putting their mental health and well-being at risk, UNICEF warned today.
LGA responds to new weight management services funding04/03/2021 14:40:00
Cllr Ian Hudspeth, Chairman of the Local Government Association’s Community Wellbeing Board, responded to a government announcement of £100 million extra funding for healthy weight programmes, including £35 million allocated to councils
NHS Confederation - Budget leaves funding for health and social care desperately wanting04/03/2021 13:40:00
Danny Mortimer chief executive of the NHS Confederation, responded to the Budget
Budget: Chancellor is ‘gambling with the recovery’04/03/2021 13:33:00
TUC General Secretary Frances O’Grady yesterday commented on the budget statement from chancellor Rishi Sunak.
LGA - Councils respond to Budget 202104/03/2021 12:40:00
Cllr James Jamieson, Chairman of the Local Government Association, responded to the Budget