Bosses will be hauled before the Commons Treasury Committee to explain the premiums they put on products such as one-click cover.
The move is part of a wider inquiry into whether certain groups are excluded from a basic level of service from financial providers, such as banks and insurance firms.
It also aims to find out if firms deliberately target vulnerable consumers to maximise profits.
The inquiry comes days after an investigation by Which? found airlines and other travel companies offering one-click add-on policies put huge mark-ups on poor cover.
Some policies were found to cover only medical expenses and not cancelled or shortened holidays, loss of money or personal liability.
Treasury committee boss Nicky Morgan said it is becoming “increasingly difficult for vulnerable customers to access certain financial services”.
And she confirmed the inquiry will “examine whether a premium is placed on products such as travel insurance for vulnerable consumers”.
It will also look at the impact of bank branch closures and fewer free-to-use ATMs.
Tom Selby, of financial services company AJ Bell, said firms need to “build understanding of vulnerability into their cultures”.
- GOT a story? RING The Sun on 0207 782 4104 or WHATSAPP on 07423720250 or EMAIL [email protected]
Source: Read Full Article