The FSA has issued further clarification on the required standard of price disclosure on the sale of mortgage payment protection insurance (MPPI) on its website, reiterating that disclosure of the monthly premium alone is not sufficient.
The move follows discussions with firms and trade associations which has led the FSA to believe many firms selling MPPI disclose only the monthly premium. On its website, the regulator emphasised disclosure of the total premium will be necessary to put the customer in a position to make an informed decision. It said: "We do not accept that it is safe to assume that consumers can readily grasp from a statement of monthly premium alone the nature of the overall financial commitment proposed. "We consider that the sales discussion is not balanced if consumers are only given the monthly p...
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