Lee Griffin, Founder and President of GoCompare commented:
“The CMA has proposed a wide range of corrective measures which could significantly reduce the impact of loyalty penalties. Much will depend on how product providers and regulators respond to these proposals, but it is the first meaningful step towards creating a cleaner and fairer market for personal financial services in the UK.
“There is no good reason why providers should be able to offer a better deal to new customers than to existing ones – other than; they can get away with it. New customers are attracted with a cheaper price and then subject to increasing rates if they remain loyal.
“The so called ‘tease and squeeze’ approach to pricing is the go-to tactic in many industries, particularly car insurance and energy.
“Instead of sitting back and waiting for any legislation to be passed, it’s imperative customers keep shopping around and switching to avoid getting ripped off.
“More also needs to be done to make it clearer how customers can switch to avoid being overcharged, and there should be protection for vulnerable groups who are most likely to fall victim to the current process.”
For further information please contact:
Anders Nilsson or Louisa Marsden at GoCompare on 01633 654 054 / 01633 655 132
Gordon, Jason or Liz at MAW Communications on 01603 505 845
Notes to editors:
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. Gocompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
GoCompare does not sell its customers’ data.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).