FSA to blame for lack of protected mortgages says insurer

Thu, 12 Jun 2008

The FSA’s investigations into loan protection insurance has left struggling homeowners facing an increased risk of home repossession, says CETA Insurance .

David Quick, managing director of CETA, says that as a result of the high profile investigations into the mis-selling of Payment Protection Insurance (PPI), many borrowers have rejected mortgage protection which could have helped them through redundancy or illness .

The CETA claims that a lack of clarity from the FSA has meant that borrowers have opted not to use mortgage protection products and this has put them at risk of repossession . "We have repeatedly warned that the FSA should draw a clear distinction between competitively priced MPPI and the expensive loan and credit card protection that generated huge profits for banks and retailers," explains Mr Quick.

However, the FSA says it doesn’t discourage the use of PPI products and that their aim was only to ensure that people were not sold PPI that they would be unable to claim on.
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