The Office of Fair Trading is to investigate the mortgage payment protection insurance industry after complaints about mis-selling. Its investigation has been launched in response to a 'super-complaint' made by Citizens Advice, which published a report, accusing mortgage and general credit payment protection insurance intermediaries of mis-selling policies to people who could not possibility claim on them. Citizens Advice has also claimed that providers have designed these policies to exclude many of the most common situations that could lead to mortgage and credit repayment problems.
Our view
There are two sides to this debate, people sometimes are desperate to obtain loans when they have poor credit and do take up the insurances offered and then complain later, others are heavily mis-sold. Regutation will no doubt steer this down the right route.