Endowment mortgage misselling will not be subject to a full-blown inquiry as the Financial Services Authority granted the mortgage industry its Christmas wish.
The industry feared the FSA would call for an investigation along the same lines as the multi-billion pensions misselling compensation.
But campaigners attacked the FSA for ignoring their calls for an inquiry. Consumers' Association principal researcher Neil Walkling says: “There has been systematic malpractice. There should be compensation for those disadvantaged.”
The FSA responded to the calls for investigation saying: “Selling standards will be under review. Where necessary record keeping will be tightened.”