The Financial Services Consumer Panel (FSCP) has welcomed the announcement of FSA action and an industry-wide refund on Mortgage Payment Protection Insurance (MPPI) totalling £60m.
However, it also called for the FSA to continue monitoring MPPI providers after the conclusion of the agreement in January 2010.
FSCP chairman Adam Phillips says: "It cannot be right that firms change the terms and conditions of an insurance policy just as times get hard and when people are more likely to try to claim on it.
"We note that this agreement is to freeze premiums and cover for existing customers until at least January 2010.
"We will be watching to see how the FSA ensures MPPI customers continue to get a fair deal beyond this date. Significant changes to cover go against the whole principle of why people pay for insurance and undermine consumers' trust in the industry."
