News Article Published:
Tuesday, 14 August 2007
Category:
Insurance
Direct Line's advertising has come under critical scrutiny after the media revealed that the finance firm has used incorrect comparison figures on its website.
The company provided a table comparing charges for Direct Line's direct access savings with those of Halifax, Lloyds TSB, Nationwide and Abbey. Yet the rival companies' figures advertised dated back to September 2006, while Direct Line's rates were up-to-date.
Direct Line advertised its Direct Access Account savings rate of 4.04 per cent after tax next to Nationwide's Cash Builder rate, which it claims is 1.12 per cent post tax, when these days it pays 2.12 per cent.
Although Direct Line has now removed the table from its website, the blunder has been somewhat embarrassing. Ironically, Direct Line is currently running an advertising campaign, which asserts that price comparison websites are unreliable.
According to the Financial Services Authority, all financial advertising must be "clear, fair and not misleading".
A spokeswoman for Direct Line said: "We apologise for the mistake. This is a result of human error."
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