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MPPI constraints harmful claims Assurant Solutions Intermediary

Nigel Payne, managing director of Assurant Solutions Intermediary has hit out at the Competition Commission for banning mortgage payment protection insurance at the point of sale.

Payne says: “By introducing a point of sale ban – be that seven days or 14 days, it makes no difference – the Competition Commission has shown a fundamental lack of understanding of the role of intermediaries in the sale of mortgage payment protection insurance which could be detrimental to both consumers and the industry.

“The sale of MPPI is substantially different to the sale of other forms of PPI. Financial advisers and mortgage brokers add value by facilitating the shopping around process and providing a recommendation best suited to the consumer’s personal circumstance and eligibility – most of which has been established during the sale of the mortgage product itself.

He says the buying habits of consumers in motor and household markets indicate that their choice is dictated by price and not whether the cover is really suitable for their own unique set of circumstances.

Payne thinks there is a very real danger that MPPI will go the same way.

Payne adds: “Forcing a consumer to seek alternative advice may in fact result in the selection of an inappropriate product.

“Moreover, it may not be in the consumer’s best interests to seek alternative professional advice and potentially incur an additional fee or to place their trust in standalone web offering without any advice.

He concludes: “With the rising levels of unemployment, MPPI is needed now more than ever. By imposing the point-of-sale ban wholesale on all forms of lending, the Competition Commission may have unwittingly made mortgage consumers worse off.”



Mole hears that a member of the mortgage industry was picked out at the end of Derren Brown’s recent show. Brown told the chap in question he could guess what he was thinking.

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Boom Time

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