Warning that insurers valuing stolen cars at low prices in Britain

Britain's Financial Conduct Authority also warned 'influencers' that promoting a financial product without regulatory approval could be a criminal office

Following a review of multiple companies under its supervision, the Financial Conduct Authority, or FCA, said it found evidence some firms were offering customers less than what the written-off or stolen vehicle was worth and only increasing that offer when a customer complained.

Britain's financial watchdog has said it had found shortcomings in how some motor insurance firms were valuing written-off or stolen vehicles, despite previous warnings against unfair treatment of customers in this way.

Following a review of multiple companies under its supervision, the Financial Conduct Authority, or FCA, said it found evidence some firms were offering customers less than what the written-off or stolen vehicle was worth and only increasing that offer when a customer complained.

The regulator said it was engaging with the firms reviewed to ensure they made improvements in respect of its findings.

"Having your vehicle written off or stolen can be intensely stressful and we expect firms to offer the right support to help their customers," Sheldon Mills, the FCA's executive director, consumers and competition said in a statement.

The FCA has put fair treatment of retail customers at the heart of its mission since introducing the so-called Consumer Duty in July 2023. The rules compel financial firms to act to deliver "good outcomes" for those customers. 

Influencers

Separately, the FCA set out guidelines earlier this week to stop misleading adverts on social media, and warned "influencers" that promoting a financial product without regulatory approval could be a criminal office.

The watchdog's rules set out how adverts must be fair, clear and not misleading by including risk warnings as social media becomes a central part of marketing strategies.

Influencers or people paid to promote products on social media, need approval for adverts or they risk committing a criminal offence, the FCA said.

"Consumers need to be alert to dubious adverts and scams online, but it is important that influencers ensure they're on the right side of the rules and consider what would happen to their own reputations if they're found to promote products illegally," the Financial Conduct Authority said in a statement.

Reuters