My mother and father, who are in their seventies, receive a discount on their insurance because they are deemed safe drivers and those who are deemed a higher risk, those who have frequent accidents, have to pay higher premiums. It's about time this sensible logic was applied to the Financial Services Compensation Scheme.
Wednesday, 11 March 2009
Dunfermline Building Society
Yesterday I joined Ann Cryer, MP for Keighley and Ilkley, in calling for a a reduction in the charges imposed on building societies by the Financial Services Compensation Scheme. Because of the failure of Northern Rock and other high risk banks, the scheme has increased its charges to cover the cost of their failure. But because building societies, like the Dunfermline Building Society, have a lot of savers they have been charged a disproportionate fee. The scheme puts far too much weight on the value of the deposits than on the risk nature of the organisation.