The Competition Commission’s proposals for introducing more competition into the selling of payment protection insurance (PPI) have been published in draft form, with parties invited to comment before 7 August.
The measures follow on from the CC’s final report into PPI, published in January, which concluded that when PPI is sold alongside a loan, for example with car finance, businesses “face little or no competition”.
The CC has announced it will ban the sale of PPI at the same time that finance is arranged, and for seven days afterwards, among other measures.
“This will address the point-of-sale advantage, and give the customer more opportunity to compare products and providers, in turn encouraging greater competition between providers,” the CC said.
Distributors and retailers will also be required to provide a wide range of information, from a “personal PPI quote” stating the policy’s cost individually and when added to the credit agreement, and an annual review to “make it easier for customers to decide whether to switch”, the CC said.