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Lenders are arrogant over payment cover, claims Carr

Lifesearch head of protection strategy Kevin Carr has accused the mortgage industry of “arrogance” over payment protection insurance.

He claims that lenders have washed their hands of responsibility after the Council of Mortgage Lenders expressed its surprise last month that MPPI was referred to the Competition Commission along with the rest of the PPI market.

Carr insists that the regulator must intervene to help improve market standards and that lenders must stop ignoring calls for changes to the way that MPPI is sold.

MPPI for prime mortgages is not being referred to the Competition Commission but the Council of Mortgage Lenders and the Association of Mortgage Intermediaries both claim MPPI gives greater access to stand-alone cover than other sections of PPI.

Loans.co.uk was recently fined £455,000 by the FSA at the end of October for failing to treat its customers fairly when selling PPI.

Carr says: “The sheer arrogance of the CML continues to defy belief. It has had years, if not decades, to raise standards in this market but has consistently ign- ored the thousands of calls for change and improve- ment because the market has been so profitable for its members.

“I have lost count of the amount of times that I have spoken with mortgage adv- isers and even mortgage compliance managers who have absolutely no interest in the suitability of the insurance products sold, just the rev- enue stream created. Only regulatory intervention can improve this market and the CML knows it.”

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