PPI - Point of sale ban to go ahead

The Competition Commission has confirmed that the point of sale ban on Payment Protection Insurance (PPI) & Mortgage Payment Protection Insurance (MPPI) will go ahead, despite a challenge by Barclays Bank.

The ban means that banks and building societies will no longer be able to sell this type of insurance at the same time as other financial products such as personal loans, mortgages and credit cards. Instead there is now a seven day 'cooling off' period before they can contact a customer to see if they require cover.

This is a provisional ban following a challenge to the original ban by Barclays and Lloyds Halifax Banking Group, the final decision will be made in July.

The Competition Commission concluded that a ban on point of sale PPI would bring greater competition, choice and lower prices to the market, and this would benefit the consumer.

Argent Consulting Comment

This will give consumers the opportunity to shop around and save up to 50% on the cost of Payment Protection Insurance, consumers will no longer feel pressured into buying PPI from the High Street Banks.

15/05/2010