Following the downfall of DSB bank, the products of other financial service companies are coming under scrutiny.

AFAB and SNS Reaal have voluntarily decided to take a look at the policies they have sold. AFAB says the commotion over high commissions and unnecessary financial products has got the credit company into difficulties.

Like DSB, AFAB was set up by businessman, Maasbert Schouten. He started out with an office in the attic selling financial products via advertisements in a daily newspaper. Now, after a number of takeovers of credit and mortgage companies, it says it has grown into the Netherlands biggest credit broker. The company even sponsors Vitesse football club in Arnhem. Since the commotion over DSB, Mr Schouten has resigned as director general, but is still a member of the board.

AFAB is trying to clean up its image. The company has seen its profits fall after a number of the high commission charges were banned at the beginning of this year. As a result the company has shifted the emphasis from free advice and policy sales to paid financial advice. AFAB has investigated the policies it has sold over the last two years. AFAB interim manager says out of 1000 dossiers, money has been given back to the customer in only four cases. He says there is no comparison with DSB because the loans AFAB grants are much lower with an average value of 2500 euros and the single premium policies are attached to credit loans and not mortgages. The company has opened a number of websites to deal with disgruntled customers.

SP MP Ewout Irrgang told TV programme EenVandaag that two years is not enough and the company had sold these products over a period of ten years.

SNS Reaal is also investigating its own single premium insurance policies. A spokesperson for the company says “If necessary we will adapt the commission and cost levels partly with a view to recent developments.”

SNS Reaal is one of six companies visited by the Financial Markets Authority (AFM) earlier this year during an investigation into single premium policies, sickness and unemployment insurance. A spokesperson for the SNS says its 42 percent commissions are average. Like DSB, SNS also sold single premium policies linked to mortgages, but the spokesperson stressed that they were not for tens of thousands of euros, but averaged just 2000 euros.

As of next year, customers have to be informed how high the commissions they are paying are.