NEW PPI Rules take effect 6th April 2011

[di30]

http://ppi-mis-selling.co.uk/index.php/archives/105

NEW PPI RULES TAKE EFFECT 6th APRIL 2011.

The new PPI rules (“orders”) issued by the Competition Commission come in to force tomorrow (6th April 2011).
The new rules are being implemented as a result of the wide-scale mis-seling of PPI by lenders.

The basic information on the changes are:-

• PPI will not be allowed to be sold alongside a loan until at least seven days after the loan is agreed.
• Borrowers will have to be given a personalised quote, detailing costs and cover.
• There must be wording saying that PPI is an optional add-on to a loan.
• In addition, the order contains a further proviso that will require all PPI sellers to reveal how many customers were successful in claiming on their policies.

Daniella Lipszyc, a leading solicitor in the area of consumer law comments “The Competition Commission started investigating this PPI scandle over 5 years ago. It has made recommendations and drafted new rules, the implementation of which have been delayed and delayed. These delays have reulted in lenders making even more profits on these products, as consumers continue to be ripped off by these horrendous policies. The horse has well and truly bolted.”

(This was obviously yesterday's news 5th April - for the effect to take action from here today 6th April.)