Competition Commission makes provisional decision on retail PPI remedies.

The independent public body, the Competition Commission has today (29/07/10) released a report consulting on changes to the way retail Payment Protection Insurance (PPI) is sold.

Retail PPI is one specific product in the overall PPI market. Retail PPI relates to protection policies taken out on repayments for goods bought from home catalogues.

The Competition Commission is looking to clamp down on the way retail PPI is sold. The document published today puts forward a number of proposals for retail PPI that aim to provide clearer information to customers on the cost of retail PPI cover and the rights they have.

Proposals for retail PPI published in the report include:

-          an obligation to offer PPI separately from merchandise cover if both are offered as a bundled product

-          an obligation to provide information about the cost of PPI and ‘key messages’ in marketing materials

-          an obligation to remind all active customers of their cancellation rights and of key messages on an annual basis

-          a prohibition on the sale of single-premium PPI policies and on charges which have a similar economic effect

-          an obligation to provide customers who have spent more than £50 on retail PPI premiums in the preceding 12 months with a written annual review of PPI costs

The Competition Commission is now inviting comments on its proposals for retail PPI before publishing the final verdict for the entire PPI market in September.

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