The Competition Commission is consulting on proposed remedies to improve competition in the PPI market. The proposals include:
- banning the sale of PPI by a distributor to a customer within 14 days of the distributor selling credit to that customer (although customers can contact the distributor before then if they want to buy);
- making credit providers provide a "personal PPI quote", which will clearly state the cost of the PPI policy individually and when added to the credit product;
- banning sales of single-premium PPI policies;
- setting common standards for provision of PPI information in advertisements;
- requiring distributors to advertise PPI for personal loans and second-charge mortgage alongside their respective credit advertisements;
- making all PPI providers give FSA certain information on PPI policies;
- making all PPI providers provide an annual statement for PPI customers, including information similar to that provided in the personal quote, to encourage customers to review their policy annually and make it easier for customers to decide whether to switch.
The CC wants comments by 4 December.