FSA has agreed a package of measures with the mortgage PPI industry to deal fairly with customers who may have been treated unfairly because of increases in premium and changes in coverage under their policies. The industry has agreed to:
- be proactive in refunding customers the additional premium and reinstating their original policy terms;
- offer to reinstate policies cancelled by policyholders following the changes;
- freeze premium amounts and contract terms for the rest of the year; and
- ensure customers understand properly the circumstances in which premiums can increase and terms of cover change.
Firms have agreed to make all refunds by mid-2010.