In addition to its core principles and rules, which require insurers to treat their customers fairly, the FSA has powers under the UK’s Unfair Terms in Consumer Contracts Regulations 1999 (Regulations) to challenge firms that use unfair terms in their standard consumer contracts and to require firms to change those terms where necessary. The FSA has recently carried out a review of firms’ and consumers’ awarenessness of the Regulations and the effectiveness of the FSA’s use of the Regulations.
The FSA’s report, and the accompanying consumer research report, summarise its key findings. The reports can be found by clicking here and here.
The FSA considers that the use of unfair contract terms provide evidence that firms are failing to treat customers fairly. The key messages are that firms should be aware of the Regulations and have systems and controls in place to ensure compliance with the Regulations and awareness of the FSA’s publications relating to them. You can read some of our previous posts relating to the FSA’s Treating Customers Fairly (TCF) initiative by clicking here and here.
