FSA to tighten rules on packaged accounts

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The Financial Services Authority (FSA) has proposed out new rules which would require banks and building societies to check customers' eligibility to claim on insurance cover provided in packaged accounts.

The rules would affect current accounts bundled up with a range of insurance policies, such as travel insurance, and other features such as overdraft facilities, music downloads and VIP lounge access. According to the FSA, there is a risk that consumers may think they are covered by each policy, but later find they are ineligible to claim or that the policy is unsuitable in some other way. Now being consulted on, the rules, which only affect non-insurance policies, will require banks and building societies to: Check whether the customer is eligible to claim under each policy and ...

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