FSA: Insurers must not increase price of mortgage protection policies

www.moneynews.co.uk > Insurance > FSA: Insurers must not increase price of mortgage protection policies

FSA: Insurers must not increase price of mortgage protection policies

Wed 10th Jun 2009

Insurers have been warned against raising the prices of the payment protection policies for those taking out mortgages and using the recession as an excuse to do so.

Lord Turner, chairman of the Financial Services Authority (FSA), has said that firms which raise the prices of payment protection insurance for those with mortgages will provoke anger as those who originally singed up for it will have anticipated a surge in its cost.

"This is an area where insurers must expect us to intervene to address poor consumer outcomes - and […] they must think strategically about the impact of their actions on the sector's reputation," he explained.

According to Claims Financial, millions of payment protection insurance policies have been missold and recommended that those who took one out within the last six years to seek advice.

Click here for more insurance news

Related News : Insurance
	Under-insurance 'a costly mistake for Brits'
	Rodents and pests 'causing havoc for homeowners'
	Brits 'should be aware of home cover details'
	PPI scandal 'has helped tighten financial regulation'
	Location 'can impact home insurance costs for Brits'
	FSA and CC 'failed to tackle PPI issue head-on'
	Pet cover 'important for Brits to get right'
	UK homes are 'falling into disrepair'
	Brits advised on reducing home insurance cost
	UK insurance 'has become more complex'