FSA must ensure quick refunds for a million MPPI customers

7 October 2009
As the Financial Services Authority (FSA) forces Mortgage Payment Protection Insurance (MPPI) providers to automatically refund 1 million customers and reinstate original levels of cover following unfair contract changes, Which? personal finance campaigner, Lucy Widenka, says: "We're pleased that the FSA has taken action against firms who've effectively been selling people umbrellas then trying to take them away at the first sign of rain.

"Customers must be refunded as quickly as possible, as many could be in financial difficulty as a result of their cover being reduced. What's more, offending firms must be named to make MPPI policyholders aware that this could affect them.

"The fact remains that MPPI is not a great product - just 28% of premiums collected are paid out in claims - so we'd urge consumers to shop around for a product that best suits their needs, or consider an alternative to MPPI to protect their finances as a whole."