Financial Services Authority crackdown on mis-sold mortgage protection cover
- 24TH DECEMBER 2007
Trouble never seems to be very far away from the payment protection sector and this time it is mortgage protection cover - or rather the mis-selling of it - that has hit the headlines. The latest problem surrounding the sector involves not only the fining of the company but also their Chief Executive – a first.
Simon Burgess, Managing Director of standalone payment protection insurance (PPI) specialists British Insurance, says that if firms are going to continue mis-selling mortgage payment protection insurance then more heads of companies should expect to put their hands in their pockets. Previously it was the firms only that received fines. This tougher step by the Financial Services Authority (FSA) since the mis-selling scandal began is continuing despite the fact that the Financial Services laid down guidelines for selling the cover in 2005.
British Insurance sell quality mortgage protection cover that could start to provide a monthly income from the 30th day of being out of work and would then continue to give an income which was tax free for up to 12 months if you were to come out of work due to suffering an accident, sickness or unemployment. Other providers’ policies might state that you are out of work for up to 90 days before paying out begins so do check the terms and conditions.
There are exclusions in a policy which could mean that you would not be eligible to claim with usual ones the policyholder being of retirement age, self-employed, suffering a pre-existing medical condition or in part time employment. There can be others which are defined in the small print and it is imperative that you read this before buying a policy. Luckily British Insurance makes sure you have access to the vital information needed along with giving you a quote which can save you up to 40% on the premiums for mortgage protection cover.
