The MFSA’s consumer affairs unit receives numerous queries related to financial services. These range from questions on credit cards and motor insurance, to bank charges and investment products. The following is a selection of typical questions made by consumers and the MFSA’s replies.
I have recently come across adverts of bank accounts promoting rather generous interest rates. The adverts also mention that these deposits are protected under the Depositor Compensation Scheme. What is this scheme?
Banks licensed by the MFSA are required to be members of the Depositor Compensation Scheme. This provides coverage of up to €100,000 for each depositor in the event that a bank becomes insolvent. The scheme is set up by law and is based on an EU Directive which requires all member states to set up a scheme which compensates depositors in the event of a bank default.
Most types of deposit are covered, including current, fixed and savings accounts that are held by individuals and small companies which are allowed to draw up abridged balance sheets. The scheme covers deposits in the currencies of all EU and European Economic Area.
All banks are required to provide information to current or prospective depositors in connection with the scheme. Moreover, a bank should also be able to clearly indicate whether, in the event of default, your deposits will be eligible for payment of compensation.
Further information at www.compensationschemes.org.mt.
I am not satisfied with the quality of replacement parts recommended by the insurer’s surveyor. What can I do?
The purpose of a motor insurance policy is to put you back in the same position prior to the loss. You therefore rightfully expect that the vehicle is repaired to high standards and that any parts used for repairs should be of good quality.
It is up to the surveyor to determine the type of parts to be used. The surveyor should ensure that a fair assessment is made prior to recommending the parts to be used. Car owners should reject any parts which are of inferior quality or which might put them at risk.
Further information at http://mymoneybox.mfsa.com.mt .
My handbag was stolen while swimming at my holiday resort. I made a police report and lodged a claim on my return – yet this was refused as the insurers claimed I left my items unattended. Why?
Travel policies usually include a provision which excludes payment for loss, damage or theft if personal belongings are left unattended. Some insurance policies may also recommend that valuables are locked in a safe if you intend to leave your belonging unattended.
It is evident that you did not exercise reasonable care when you left your handbag unattended. This circumstance was excluded under your travel policy and thus your claim was not upheld.
Further information http://atmymoneybox.mfsa.com.mt .
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