Insurer blames FSA for lack of protected mortgages

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Struggling homeowners may be at increased risk of home repossession because of the FSA's investigations into loan protection insurance, according to CETA Insurance.

David Quick, managing director of CETA, says high-profile investigations into mis-selling of Payment Protection Insurance (PPI), means many borrowers have shunned mortgage protection that could have helped them if they suffer from redundancy or illness. UK unemployment has been rising in recent months, according to the Office of National Statistics, and an expected economic slowdown is likely to result in further job losses. However, CETA says a lack of clarity from the FSA has resulted in many borrowers choosing not to use mortgage protection products, putting them at risk of repossess...

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