Following the highlighting of the sale of personal accident insurance (PAI) by Chuka Umunna MP for Streatham, Edwin Coe’s David Greene called for temporary employment agencies to stop profiting from the sale of the insurance to low paid workers and for the FCA to step in immediately to stop the practice.
“We are pleased that Chuka Umunna has highlighted the sale of personal accident insurance by agencies to the low paid, sometimes reducing their income below the minimum wage which is illegal. It’s an absolute scandal. We represent workers who are being sold insurance of doubtful worth. We believe the sale itself of these policies breaks the law. Agencies do this to boost their profits and as a business. We have previously written to the FCA to seek an investigation because we believe that agencies must be regulated in the sale process. They have not indicated what they are doing. We have called today for the FCA to stop the practice immediately and for workers to be paid back the money they can ill afford to lose. There must be considerable doubt of the morals for agencies to profit in this way from the low paid but our argument is one in law. We have told the FCA that they must act now to stop this practice. Hopefully the Government will ensure something happens to protect the vulnerable.”
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