Consumer Panel applauds FSA action on Mortgage PPI

7 October 2009

The Consumer Panel has welcomed the announcement today of FSA action and an industry-wide refund on Mortgage Payment Protection Insurance (MPPI).

Adam Phillips, Chairman of the Financial Services Consumer Panel, said:

“This is exactly what a financial regulator should be here for and we applaud the FSA’s action.  It cannot be right that firms change the terms and conditions of an insurance policy just as times get hard and when people are more likely to try to claim on it. 

We note that this agreement is to freeze premiums and cover for existing customers until at least January 2010.  We will be watching to see how the FSA ensures MPPI customers continue to get a fair deal beyond this date.  Significant changes to cover go against the whole principle of why people pay for insurance and undermine consumers’ trust in the industry.”

Notes to editors

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives.  The Consumer Panel has statutory status.  

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. What we're doing for consumers explains more about the work the Panel is doing.

3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.

4. There are currently ten members of the Panel as listed below (for further information on individual members, see Who is on the panel)
   

   Adam Phillips (Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart