CML disappointed in OFT referral decision

07 Feb 07

The Council of Mortgage Lenders is disappointed by the Office of Fair Trading's decision today to include mortgage payment protection insurance in its referral of the payment protection market to the Competition Commission.

The OFT itself recognises that MPPI differs from the wider PPI market, and acknowledges that there is less concern about it.

Michael Coogan, CML Director General, said:

"MPPI is a vital safety net for many households, and this referral sends out entirely the wrong message to consumers. While we will co-operate as fully as possible with the Competition Commission to examine the issues, we are extremely disappointed that the special and unique position of MPPI has been ignored by the OFT in reaching this counter-productive decision."

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.6 million mortgages in the UK, with loans worth over £1 trillion.

2. The OFT's referral to the Competition Commission is available on their website.