The Competition Commission have finally come out and said that selling Payment Protection Insurance (PPI) along-side borrowings creates a lack of competition. We already know from all the PPI claims that it’s not best practice to sell PPI in this way which is why it’s being made illegal to sell PPI with a loan.

Whatsmore, by pitching a customer for PPI while they’re signing up for a loan, that customer may make a decision based on ease and convenience, rather than value for money. This is partly why lenders will have to wait 7 days from the date of agreement to pitch PPI to a loan customer.

For more about this, take a look at this article by credit card comparison site ‘CardSmart’ who discuss the sale of PPI in greater detail.

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2. PPI Claims Rise As FSA Plays Hard-Ball
3. PPI to be banned
4. PPI Claims On The Increase
5. PPI Refund Claims Increased By Swine Flu