Lenders and insurers are to refund up to £60m to more than 1m mortgage payment protection insurance customers hit by unfair premium rises or cuts to their policy benefits.
The Financial Services Authority yesterday announced it had secured an agreement with MPPI providers to reverse unfair changes to terms and conditions that were widely imposed from the start of the year.
MPPI is designed to meet mortgage repayments in the event of accident, illness or forced redundancy. But as unemployment began to spiral upward, policyholders were faced with increased premiums of £6-£7 a month and cuts, sometimes amounting to hundreds of pounds, in the monthly benefit the policy would pay out.
Financial Times, The Times