Despite a number of series accusations by the members of the Committee, the industry failed to acknowledge its full responsibility for endowment mis-selling and the economic crisis looming because of endowment shortfalls.
Industry also flouted the Committee's concerns over the low numbers of people complaining about being mis-sold their endowment, by refusing to put information about the right to complain in their reprojection letters.
In addition, the industry representatives were not able to make a defence for using policyholder funds to pay compensation for corporate wrongdoing. Consumers’ Association has called on the FSA to respond to this by banning this practice once and for all.
Louise Hanson, Head of Campaigns, Consumers’ Association, said:
"This was hardly a sparkling performance. The entire industry needs a reality check. Tales of good advice procedures are unlikely to wash with the millions of consumers mis-sold.
"It is shocking that despite clear evidence by the FSA, the FSA Consumer Panel and the Consumers’ Association, only two companies were willing to accept some responsibility for mis-selling.
"What the committee has succeeded in exposing today is that industry considers its duty of care to be limited to the point of sale. Once a consumer has been sold a product the industry washes its hands of them.
"The FSA has dragged industry by the scruff of its neck on every step it has made to address the endowments crisis. Consumer confidence is unlikely to improve so long as the industry continues to show such contempt for its customers."
