Competition Commision press release 13/11/08

[EXC]

PPI—PROVISIONAL DECISION ON REMEDIES

http://www.competition-commission.or.../pdf/33-08.pdf

[Amethyst]

Re: Competition Commision press release 13/11/08

All sounds like good moves if any of them get agreed on...the first one especially



The proposed package of remedies includes:

• A prohibition on the sale of PPI by a distributor to a customer within 14 days of the distributor selling credit to that customer. 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. Whilst the distributor cannot re-contact the customer for 14 days, customers will be able proactively to contact the distributor and purchase a PPI policy 24 hours after the credit sale.

• Credit providers will be required to provide a ‘personal PPI quote’, which will clearly state the cost of the PPI policy individually and when added to the credit product. If this is not given at the point of sale, the credit provider must do so if they subsequently contact the
customer to offer PPI, and the prohibition period starts from the date on which the personal PPI quote is provided to the customer.

• A prohibition on the selling of single-premium PPI policies, which act as a barrier to customers switching and the costs of which are difficult to compare with other PPI policies. The CC considered whether mandating pro-rata rebates on single-premium policies would be a sufficient remedy, but has concerns about such a remedy which led it provisionally to conclude that it would not be sufficiently effective.

• A requirement on all PPI providers to provide certain information and messages in PPI advertisements (including the price of their PPI, expressed in a common format of monthly cost per £100 of monthly benefit, and that PPI is optional and available from other providers).

• A requirement on distributors to advertise PLPPI (personal loan) and SMPPI (second-charge mortgage) alongside their respective credit advertisements.

• A requirement on all PPI providers to provide certain information on PPI policies to the FSA and a recommendation to the FSA that it uses this information for its PPI price comparison tables.

• A requirement on all PPI providers to provide an annual statement for PPI customers, including information similar to that provided in the personal quote, to encourage customers to review their policy annually and make it easier for customers to decide whether to switch.

[Amethyst]

Re: Competition Commision press release 13/11/08

Also read press reports PPI report recommends lenders delay sales for 14 days - Legal Beagles

[TANZARELLI]

Re: Competition Commision press release 13/11/08

Was just about to post this EXC as hadn't seen it posted up until I had a search.

[pinknico]

Re: Competition Commision press release 13/11/08

Sorry no idea how to do links but the competition commission dont think brokers should sell PPI at point of sale either they have clarified todayI believe.