PPI point-of-sale ban to go ahead
The Competition Commission (CC) has confirmed that it will introduce a ban on the sale of payment protection insurance (PPI) alongside an associated credit product, such as a personal loan.
The restriction, which excludes retail PPI, should have been introduced last year but an appeal by Barclays resulted in a postponement.
The Commission has since reconsidered a potential drawback to the prohibition, namely that it might inconvenience customers, saying it has “come to a clear view that, overall, customers will benefit significantly from the market reforms we propose introducing for PPI products”.
CC deputy chairman, Peter Davis, adds: “In particular, these reforms will mean that PPI providers will, in future, face real competition where there is currently little.”
In its 2009 report, the Commission found that the vast majority of the UK’s more than 12 million PPI policies were sold at the same time as a consumer took out a loan, credit card or other type of credit.
The watchdog also found that many consumers are unaware that they can buy PPI from other providers; that they rarely shop around to compare prices and terms and conditions, and that they rarely switch PPI providers.
Category: Health Insurance News, Insurance News, Legal News
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