Commission consults on PPI reform despite Barclays appeal

8th Jul 2009 07:31

The Competition Commission has published a consultation document on its planned measures to crack down on Personal Protection Insurance (PPI) selling despite an appeal from Barclays still waiting to be heard. The Commission announced its draft proposals in January. Barclays appeal against them will be heard by the Competition Appeal Tribunal on 7-10 September, but the Commission says it has started consultation on the detailed implementation of the changes to enable it to move quickly once the appeal is finalised and it has considered the CAT's judgment. The Commission has recommended sweeping changes to the way PPI is sold.These changes include prohibition on the sale of PPI during the sale of the credit product and for seven days afterwards; prohibition on single-premium policies; and personal PPI quotes, annual reviews and other measures to give consumers better information and to make it easier to compare, search products and switch policies at a later point."If the CAT supports our findings, taking these steps now will help ensure there is no unnecessary delay in resolving the significant competition issues that we found in this market and in delivering a better outcome for consumers," said Peter Davis, Inquiry Chairman and the Commission's Deputy Chairman."This public consultation is an opportunity for all PPI providers and others with an interest in the effective operation of PPI markets to comment on the way in which we plan to implement these important measures," he added.