The Consumer Panel today welcomed the Tribunal* decision that upheld the FSA's case that L&G's sales procedures were defective and that "these procedural defects will have caused or contributed to mis-sales".

The Panel is pleased also to see the FSA being encouraged to use its powers more forcefully to obtain the evidence they need to check up on potential mis-selling by financial services firms.

Ann Foster, Chairman of the Consumer Panel said:

" The most important finding is that 41,000 L&G Flexible Mortgage Plans were sold between 1997 and 1999. As the Tribunal found that L&G's sales procedures were defective, it is imperative that L&G review those sales to ascertain how many were missold, and compensate consumers accordingly."

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