Competition Commission forges ahead on new PPI rules
by Gill Montia
Story link: Competition Commission forges ahead on new PPI rules
The Competition Commission (CC) has set out proposals on the implementation of new measures aimed at increasing competition in the Payment Protection Insurance (PPI) market.
PPI is intended to cover repayments on unsecured loans if the borrower loses their job or becomes too ill to work.
The insurance has been the subject of controversy for years with consumer groups claiming that the market is uncompetitive and that cover is frequently mis-sold.
The CC package includes: A prohibition on the sale of PPI during the sale of the credit product and for seven days afterwards;
a prohibition on single-premium policies.
The Commission also wants consumers to receive personal PPI quotes and annual reviews which should make it easier to compare products and switch policies at a later point.
The CC is forging ahead with its consultation despite a decision by Barclays to contest a ban on the sale of PPI alongside a consumer credit agreement.
The appeal will be considered by the Competition Appeal Tribunal (CAT) in September and the CC has promised to defend its case vigorously.
Inquiry chairman and CC deputy chairman, Peter Davis, says: “By continuing with the necessary preparations like this, we can hit the ground running once the appeal is finalised and we have considered the CAT’s judgment.”
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