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”.
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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.
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By GlobalData
