Axa given FSA warning on cash back

James Daley
Saturday 18 June 2005 00:00 BST
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Axa Insurance was given a warning by the City watchdog's unfair contracts division last week, after the regulator took issue with the terms and conditions of a cash back scheme offered by Axa.

The Financial Services Authority ordered Axa to change the terms of the offer, to allow customers more time to participate in the scheme.

The cash back scheme is part of an extended warranty product that Axa offers with AdjustAbility Beds, which specialises in orthopaedic beds. The scheme offered a partial refund if customers did not claim on their policy over its five-year lifetime.

However, the small print stipulated that customers had to apply for the cash back offer within 15 days of taking out the policy.

After being approached by the FSA, Axa agreed to extend the application period to six months and said it would accept claims from existing customers who had not applied within the 15-day limit.

A spokesman for Axa UK, Phil Hickley, said: "Clearly we've taken on board the FSA's concerns and we're not going to be applying the onerous contract terms anymore. This was a fairly small scheme, and it was done sometime ago, but obviously this is not an excuse."

Six months ago Axa was fined £500,000 by the regulator for misleading advertising.

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