Insurers to refund MPPI customers

Mortgage payment protection insurance customers are in for £60 million of refunds following an upsurge in cover costs.

The Financial Services Authority has brokered a deal with insurers to compensate policy holders whose cover has been cut since the start of the current recession.

MPPI costs are also due to be frozen for the rest of the year and customers who have cancelled their policies due to rising costs will have the right to reinstate them.

A spokesperson for Which? called for the FSA to go further and name those companies that had tried to rein in insurance policies at just the time when people began to need them more.

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