UK’s FSA Warns on Sales of Invalid Auto Policies

September 21, 2006

The UK’s Financial Services Authority has issued a bulletin, urging consumers “that have bought motor insurance from a company called Double Easy Brokers Ltd. (trading as Eeasybrokers) to arrange valid motor insurance cover immediately.” The FSA explained that “Double Easy Brokers Ltd., which is not authorized by the FSA, was offering invalid motor insurance policies to the public.”

The FSA warned that “consumers would be committing a criminal offense by driving without valid insurance cover.” It urged persons affected to “contact the FSA’s consumer helpline on 0845 606 1234 to assist with their inquiries.” The FSA also noted that “because the firm was not authorized, consumers do not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service.”

The FSA said it “knows of only a limited number of invalid policies that were sold to consumers in the Cardiff, Leeds and Southampton areas. But, because policies may have also been sold by franchises, the extent and location of the sales could be greater. Although Eeasybrokers appears to have ceased trading it is possible that policies issued by Double Easy Brokers Ltd. may have been or continue to be sold by franchisees and/or other intermediaries.”

The bulletin also explained that “Double Easy Brokers Ltd. claimed association with Zurich Insurance Company, but is not affiliated with Zurich in any way. Double Easy Brokers Ltd. also falsely claimed that it was authorized to issue the policies in Zurich’s name.

“Double Easy Brokers Ltd. traded through its website in a style identical to that of easyMoney.com Car Insurance. However, neither easyMoney.com nor any other company within the easyGroup group of companies has any affiliation with Double Easy Brokers Ltd.

“Both Zurich and easyGroup brought this matter to the FSA’s attention and provided information on the activities of Double Easy Brokers Ltd.”

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