Lamb investigates alleged practice of helpline operators

9.56.00am BST (GMT +0100) Tue 11th May 2004

Norman Lamb, Liberal Democrat Shadow Treasury Minister, has written to the Chief Executive of the Financial Services Authority (FSA), John Tiner, regarding allegations made of helpline operators at Life companies.

Mr Lamb has been told by Andrew Moore of Endowment Claims that helpline operators are encouraging consumers to 'top-up' their endowment policies. Mr Lamb said: "The practice of topping-up failing endowment policies exposes consumers to greater risks. Consumers must be aware of all the options, including the possibility of cutting their losses. I have asked the FSA to

comment on the allegation that helpline operators are not making these options clear."

Norman Lamb has also asked about the imposition of the time bar: "I want to establish whether it is legitimate to impose a bar prior to any loss actually having been suffered. It is my understanding that customer complaints should only be time barred if losses have been suffered, and if the customers are aware of their right to complain. Holders of failing policies incur an actual loss only after they have surrendered the policy or it matures."