BUILDINGS INSURANCE FEES

Early day motion 494, tabled 29 November 2001 by Geraint Davies (Labour). Signed by 137 members.

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.

Signatures by party: Labour 83, Liberal Democrat 28, Conservative 11, Labour/Co-operative 7, Scottish National Party 4, DUP 2, Plaid Cymru 2.