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Competition Commission Lays Down New PPI Rules In UK

To enhance competition in the Payment Protection Insurance (PPI) market

The Competition Commission (CC), UK, is moving ahead on the implementation of new measures that is expected to enhance competition in the Payment Protection Insurance (PPI) market – reported in Banking Times.

PPI is intended to cover repayments on unsecured loans if the borrower loses his job or is in an ailing condition.

The CC package incorporates prohibition on the sale of PPI during the sale of the credit product and for seven days afterwards, and prohibition on single-premium policies.

The Commission wishes 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.