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PPI point of sale ban proposed for April 2012


The Competition Commission yesterday set out a timetable for implementing its remedies for payment protection insurance (PPI).

This follows the Commission's final decision on 14th October to prohibit the sale of PPI at the same time as a credit or loan as part of its package of remedies to improve competition in the UK PPI market.

Other measures include an outright ban on PPI policies paid for by a single premium and new rules on PPI advertising and marketing to make sure information is easy to understand and compare. Customers will also be given personalised quotes and an annual statement about their PPI policy to encourage them to review their cover.

In addition, PPI providers will be required to provide information to third parties such as the FSA for inclusion in price comparison tables. There will also be specific measures for retail PPI (covering repayments on goods bought via catalogues) which will not be subject to the point of sale ban.

The Competition Commission's suggested timetable would see the new rules on marketing and the information to be provided to third parties come into force in October 2011. All other elements of the package – including the point of sale ban – would come into effect in April 2012.

First, however, the Commission must carry out a formal 30-day public consultation on its draft implementing order, planned for late November. Assuming the order can be finalised in late February/early March 2011, the Commission will be on course to meet its proposed deadlines.

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