BUILDINGS INSURANCE FEES

Motion Text

That this House notes with concern the widespread practice whereby mortgage customers are required to pay a minimum of ú25 to switch their buildings insurance to another provider; further notes that consumers are often misled by their mortgage lender's lack of clear, up-front, information about the existence of this fee; recognises that no comparable switching fees exist in similar service industries such as gas, electricity and telecoms; applauds the action taken by insurers who refund this fee to their customers; and recommends that the regulators take action against this anti-competitive and anti-consumer practice to allow mortgage customers to choose the best buildings insurance policy for their circumstances without being deterred by an unjustifiable fee.