Financial deals ‘waste of money’

Bank card protection policies have been branded “unnecessary” by a consumer watchdog as part of a campaign against financial products which it believes are a waste of money.

Which? has launched a campaign against certain financial products, including separate mobile phone insurance, debt management companies and credit and bank card safeguards which are taken out by about a third of UK consumers.

The report found that millions of people pay out an average of £37 a year to protect their bankcards from being lost or stolen – a safeguard which could be more cheaply taken out as an addition to home insurance policies.

“Which? research shows banks and insurance firms are among the worst offenders when it comes to creating products that are poor value, whether it’s insurance policies that you’ll never claim on or savings products that pay a pittance,” said the report.

“We believe that the financial regulator should be responsible, which is why we’re launching our new Watchdog not Lapdog campaign.”