Clearer advice for mortgage-takers

A new Mortgage Endowment Code has been launched - designed to give clearer information to consumers.

09:56 26 May 2004

The Association of British Insurers (ABI) has published a new Mortgage Endowment Code designed to give clearer information to consumers.

The new code should improve communications with customers and the policyholders' understanding of the performance of their investments.

Director general of the ABI, Mary Francis, said the changes, "will ensure that customers receive helpful information and advice."

She added: "We have taken the views of many organisations into account and also responded fully to the recommendations of the Treasury Select Committee."

The changes include providing clearer information about complaints, which should make the procedure easier to understand for consumers.

It will mean the introduction of a warning box containing extra information about how and when to complain, and provide details of a website address and phone number for contacting independent advisors.

The ABI also today announced two new projects designed to help build greater public confidence in savings.

The first will be a look at the way in which long-term savings are sold, and particularly the role of commission. The analysis will also look at possible future developments.

Additionally, it will consider whether there is room for new customer service initiatives along the lines of the Raising Standards quality mark scheme.