Paymentshield cuts over 60 jobs

by Gill Montia

Story link: Paymentshield cuts over 60 jobs

Paymentshield has made more than 60 members of staff redundant, or around 20% of its workforce.

According to reports, the job losses are centred on the firm’s Southport office.

The mortgage payment protection insurer, which is part of the Towergate group, says some of its processes were being duplicated.

Since the UK entered recession, mortgage payment protection insurance (MPPI) has been a hot topic for debate.

Some providers have increased premiums and reduce cover for existing policyholders, and last month, the Financial Services Authority (FSA) announced an industry-wide package of measures that will result in consumers receiving refunds totalling around £60 million.

MPPI firms have agreed to:

Proactively refund increases in premiums, and reverse any reductions in cover, for customers who have experienced these changes to their policy in 2009;

Offer to reinstate policies where a customer had cancelled it within two months of an increase in premium or reduction in cover made during 2009;

Freeze premiums and cover for existing customers for at least the remainder of this year and amend MPPI contracts to ensure that all customers are made aware of the circumstances in which firms have the right to vary premiums and cover.