Britain's Financial Conduct Authority (FCA) has uncovered shortcomings in the sales of premium finance for general insurance following a review of more than 40 providers, the watchdog said on Monday.
The review, which focused on the online sale of home and car insurance by 13 insurers and 30 insurance intermediaries, showed providers are not always giving customers clear information about the different payment options available when buying general insurance products.
Consumers would therefore struggle to compare the difference between paying upfront or in installments, the regulatory body said.
The review also highlighted that firms acting as a credit broker did not always disclose the name of the credit provider or details of their relationship with the firm.
The FCA expects all firms to consider the findings of the review and take action where necessary. It is also following up with individual firms where it found specific examples of failings and poor practice.
"Consumers should expect clear information about the payment options available to them," Linda Woodall, acting director of supervision at the FCA said.
"Regardless of whether people choose to pay upfront or in installments, it's important that they can see exactly what they are signing up for and how much it costs so they can decide whether they are getting a fair deal."
