The not-so-fine print: making consumer contracts fair
By FCA
AI summary of the source article
Regulators are enforcing Consumer Rights Act 2015 requirements against unfair contract terms in financial services. Recent interventions compelled a crypto firm, an insurer, and an adviser to amend unfair terms and pay redress to affected consumers.
Why it matters
if a term is found to be unfair, it's not just unenforceable – consumers may be due redress too. That's why it pays for firms to get this right from the start.
Key facts
- A crypto firm removed excessive storage fees that could exceed £40,000 annually for inactive customers and paid consumer redress.
- A travel insurer paid £18,000 in redress and revised ambiguous 12-hour delay terms following wrongly denied claims.
- A financial adviser updated its terms after attempting to charge a customer £800 for handling a complaint.
Source excerpt · FCA
How many of us read the terms and conditions of a contract before buying a financial product?Contracts hold the detail that shapes everyone's financial life, whether you're taking out a loan, insuring your holiday, or signing up for a crypto wallet.All firms are responsible for making sure that terms in their consumer contracts comply with the fairness and transparency requirements of the Consumer…