Swinton News Update: Questions Over Renewal Deposit Scheme
Swinton news update: Questions have been raised over the company’s renewal deposit scheme wherein they demand a pre-payment as part of the renewal process.
Regulators have questioned the fairness of this process as well as looking at it from a client money perspective – the request for a deposit towards to the following year’s premium appears to tie customers in, at least through strong encouragement if not through contractual obligations, to the year following.
After they were fined last month for mis-selling their insurance the question about client fairness has to be raised – the company, whose practise was highlighted by the BBC in 2012, do not appear to be operating with their customers’ best interests in mind.
‘Insurance mediation’ is another factor that is repeatedly brought into question as the location of the storage of the money taken as a deposit could have implications that reflect a lack of client care. A further accusation from the RWA raises the question regarding the suitability of the insurance policy for the customer as there is little or no advice offered to the customers prior to the deposit being taken.
Swinton News Update
Returning to the storage of the money; it should not be in a client money account if it is not client money. This affects the trust and the pool and if the money just forms part of the overall asset pool for Swinton, questions about the credibility of this are rife.
The acquisition of interest on this money must be made clear to the client as the broker must get the client’s permission to earn interest on their money as it were. If this money is just being used to boost the overall asset value of the company then they need to look into the clarity of their deposit renewal scheme.
The concept of having a direct debit or equivalent established so that customers can instantly renew their car insurance and not have to spend hours setting up new accounts is far from unheard of in the insurance market; it is the deposit that makes it unique and controversial.
Swinton have responded with the promise of a 55 day warning period before the renewal date that explains that about one week before that date the deposit will be taken. This means there is a 48 day warning period before the deposit is taken and should the customer not want to renew their policy a full refund will be issued without any pressure from the company for it not to happen.
Contact the customer services department at Swinton for more information on any of the services offered by the insurance company. All contact information can be found here http://www.customerservicescontact.co.uk/swinton-phone-number/ and the latest news stories here http://www.customerservicescontact.co.uk/news/swinton-news-update-swinton-insurance-slapped-with-fine/.
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