Banks under fire for client poaching as broker turns to FSA

KGJ Insurance Group has complained to the FSA that several high street banks are using strong-arm tactics to poach customers.

KGJ managing director Richard Cox said an employee from one bank had threatened to withdraw its facilities from a KGJ client if the client refused to let the bank review its commercial insurance.

Cox said Wolverhampton-based KGJ had lost two clients in two days following such bank pressure, and that at least three other Midlands-based brokers had reported similar experiences.

An FSA spokesman said the watchdog was unable to comment on individual companies or investigations, but added: “When complaints are made to the FSA, we take them seriously. If we find evidence of mis-selling or dodgy sales practices, then that is something that we look into quite seriously.”

Biba head of corporate affairs Graeme Trudgill said: “We’ve had quite a lot of members saying they’ve got some issues with certain banks’ practices.

“Competition is one thing, but unfair pressure and breaching any lending standards codes is a different matter that we would take really seriously.”