Written question asked by Ian Lucas (Labour) on Thursday, 20 June 2002, in the House of Commons. It was due for an answer on Monday, 24 June 2002. It was answered by Ruth Kelly (Labour) on Monday, 24 June 2002 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, how much compensation has been given to consumers who were mis-sold endowment mortgages since 1992. - Includes ref to Financial Services Act 1986.

Answer: Ian Lucas: To ask the Chancellor of the Exchequer how much compensation has been given to consumers who were mis-sold endowment mortgages since 1992. [64315] Ruth Kelly: Since 1988, when the system of financial service regulation came into force under the Financial Services Act 1986, and up until the end of the first quarter 2002, some £151 million in compensation has been paid to endowment policyholders following the complaints process. In addition, and as a result of the Financial Services Authority's (FSA) regulatory activities, some 20 firms have agreed proactively to compensate policyholders who were mis-sold their policies. This involves around 218,000 in policies, leading to total compensation of around £315 million due to be paid.

Secondary information