Which? responds to the news that the ABI is taking action on motor premium finance

Rocio Concha, Which? Director of Policy and Advocacy, said: 

"Car insurance is a legal requirement for motorists, yet many people who can't afford to pay for their annual premiums in one go are being hit with eye-watering levels of interest on monthly payments of up to nearly 40 per cent which can add on hundreds of pounds a year. 

"While it's good to see the insurance industry finally recognising that this is a huge problem, waiting another year for the ABI to publish its findings when insurers should already be doing this is not good enough. 

"The FCA needs to make clear where insurance companies' pricing practices are failing to meet fair value requirements, and set deadlines for firms falling short to fix this."

-ENDS-