SNS Reaal one of six overchargers: Parool

Wednesday 21 October 2009

SNS Reaal is one of the six financial services institutions looked at by the sector's regulator AFM and found to be overcharging customers, the Parool reports on Wednesday, quoting bank and insurance sources.

The confidential report, published by the Financieele Dagblad last week, said six larger financial institutions were charging fees of up to 80% for some sorts of credit insurance.

The charges are in line with the fees levied by DSB bank, which went bankrupt after angry customers withdrew their savings.

The AFM refused to reveal the names of the institutions charging excessive fees but sources told the Parool SNS Reaal and foreign firms Cardif, Genworth and Quantum Leben were among the six.

SNS and Cardif have admitted they were looked at by the AFM. The other two were unavailable for comment, the paper said.

SNS was fined by the AFM in August for failing to make sure it obtained sufficient information from customers before selling them investment-based insurance policies.

The polices were a niche market to cover private loans and mortgages, the paper says and Dutch financial groups such as Aegon and ABN Amro are not active in this market.

© DutchNews.nl

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