Compensate clients for rip-off policies, watchdog tells banks
Thursday 09 September 2010
The financial services authority AFM wants banks and insurance companies to compensate clients if it turns out that they have been sold products which are 'not in their interest', the Financieele Dagblad writes on Friday.
The paper says the 10 biggest banks and insurance companies in the Netherlands are planning to review all their product to see if they are in the interest of customers, in line with AFM requests.
The review will look at whether products - including mortgages and savings schemes - are too complicated, do not do what they promise or are unnecessarily expensive.
'For example, we have made a clear agreement about the criteria savings products should meet,' AFM board member Theodor Kockelkoren said.
The AFM cannot force financial firms to compensate customers because it would require a change in the law. Moves to amend the current legislation have stalled because of the cabinet crisis, the paper says.
© DutchNews.nl
Readers' comments
Comments have been closed for this article.
|
Thursday: Cold with sunny spells and light snow possible. Heavy frost at night. More sun Friday
Yes, if the investors in saving accounts of the Icelandic Banking scandal can be refunded, why not other banking scams even closer to home. During the Dot.com bubble there were plenty of banking scams afloat, bilking thousands out of their savings in stock sales, which had little chance of succeeding. At the time very little was done about them and the investors had to eat their loses -- the AFM's attitude was buyer beware.
By Quince | September 9, 2010 8:12 PM