The National Credit Regulator had referred Lewis and Monarch Insurance Company to the National Consumer Tribunal following an investigation into loss-of-employment cover sold to people who would not be able to claim the benefits.
In enforcing TCF, the authority has imposed huge fines on many firm s for misselling. In the largest yet, the FSA has just dished out a £10,5m fine to banking group HSBC for misselling products. And Barclays was fined £7,7m in early 2011.
Banks are allowed to make credit life assurance a condition of granting a loan, but they may not prescribe which credit life assurance you may use.
The credit life assurance – which covers the loan in the event of death, disability or retrenchment – into which the banks will steer you is about the most expensive on offer.