MORTGAGE BROKERS, home insurers and motor insurance companies are falling short of meeting their consumer requirements, a new survey from the Financial Regulator has revealed.

According to an investigation commenced by the regulator in 2009 into compliance with the Consumer Protection Code, some lapses in the code were identified in the practice of mortgage intermediaries when referring business on to specialist lenders.

Such lenders generally offer mortgages to those with a troubled credit history.

Firstly, statements of suitability, which outline why a product is considered suitable for a particular consumer, were found to be “lacking in detail and contained vague generic statements”.

Evidence of affordability was also an issue, with a number of firms not conducting sufficient research into the consumer’s ability to repay.

Mortgage intermediaries also fell down on the perception, in a number of firms, that it was the responsibility of lenders, and not the intermediaries, to comply with certain sections of the code.

Home insurers were also found to be in breach of the code. Having inspected the eight largest firms in terms of the number of claims processed – a group accounting for 98 per cent of the home insurance business in Ireland – the regulator found a small number of cases where claims cheques were not issued to claimants within 10 business days.

The code requires that firms pay all claims to the claimant within 10 business days of an agreed settlement.

It also found that some firms are moving to a process whereby claims can only be settled using the insurance groups’ approved repairers.

In order to settle claims in this manner, the regulator said insurance firms must ensure that consumers are aware of this at the time of entering into an insurance contract.

The regulator also inspected nine motor insurance firms, the largest in the market, with respect to their renewals procedures. Although it found that firms are processing motor insurance renewal documentation in line with regulatory requirements, there was nonetheless a very small number of cases where the time rule for issuing renewals had been breached.

Renewal notices must be issued at least 15 days in advance of the renewal date of the policy.

Any breach of the Consumer Protection Code may be considered under the regulator’s administrative sanctions procedure.