Turner issues warning to mortgage payment protection providers

A warning has been issued to insurance firms which provide mortgage payment protection policies.

Finance industry watchdog Lord Turner said that any attempt by such firms to push through price increases during the economic downturn would be investigated.

He made his comments in response to concerns that insurers intend to implement premium increases for mortgage payment protection products and that they are to restrict the scope of policies in order to reduce the amount they have to pay out.

Lord Turner stated: "Whilst it is natural for the industry to respond to changes in risk, this raises issues with both unfair contract terms, disclosure and our 'treating customers fairly' principles."

He added that increases in price and restrictions in cover could have a detrimental impact on the reputation of the industry.

Lord Turner is the chairman of the Financial Services Authority and he has a background in business, public policy and academia.
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11/06/2009 14:23

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