Victory for insurance consumers

A CHALLENGE to a ruling allowing people to make retrospective claims for mis-sold insurance when taking out a loan has been overturned in the High Court.

The judgment on the British Bankers' Association challenge to the Financial Services Authority ruling has been welcomed as a "victory for consumers".

Price comparison website USwitch.com said the decision could be the the "final nail in the coffin" for re-building consumer trust in the insurance industry.

Lucy McTiernan, chief exercutive of Consumer Advice Scotland added: "If sellers don't want to have to pay compensation, the answer is very simple: don't mis-sell your services."