The Competition Commission wants to introduce a ban on selling PPI (excluding retail PPI) at the point-of-sale. The decision is provisional and open to final consultation. The Competition Commission intends to publish its final decision in July.
The Competition Commission initially announced its plans in October 2009, after its investigation found that banks and building societies faced “little or no” competition when selling PPI to their credit customers. However, the proposed ban was challenged by Barclays, supported by Lloyds Banking Group and Shop Direct Group Financial Services, who argued that a point-of-sale ban was unjustified and that it would inconvenience customers.
Consequently, the Competition Appeal Tribunal ruled that further investigation was needed, but, after further analysis, the Competition Commission concluded that a ban would bring greater competition, more choice and lower prices – benefits that would outweigh any inconveniences for customers.