MEDIA CENTRE
Media Centre
Press Releases
29-01-2009
AFB Responds To Competition Commission Final Report into PPI
The Competition Commission (CC) has today published its final report into the Payment Protection Insurance (PPI) market.
Responding to the report Robert Sinclair, Director of the Association of Finance Brokers (AFB), said:
"The AFB is disappointed but not surprised by today's announcement that the sale of single premium PPI is to be banned. The Commission has always failed to recognise the benefits of this product designed for a particular segment of consumers. The issues around pricing were recognised by the Commission and the remedies still fail to address this key issue.
"The AFB regrets that the Commission has not recognised the differences in the products and sales processes surrounding broker led secured loan PPI advice and sales.
"The introduction of 7 day waiting periods or 24 hour consumer deferment will add cost and complexity to an already lengthy process. The advertising provisions and the regular statements recommendations whilst likely to increase "shopping around" will increase costs and are likely to increase the numbers of those unable to claim as they will have not recognised issues around pre-existing medical conditions.
"Many consumers benefit from this protection and we hope that the changes demanded by the Competition Commission do not increase the numbers of individuals who will then be wholly reliant on state benefits.
"The AFB will continue to monitor developments closely and will inform members of the steps they need to take when dates are confirmed."
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