Competition Commission proposals need careful consideration

It is important that customers do not find themselves short of valuable protection and so new proposals on the selling of Payment Protection Insurance (PPI) must be considered carefully, the British Bankers' Association (BBA) said today.

The proposals, contained in a consultation document published by the Competition Commission, are the result of a review of the competitiveness of the product.

Angela Knight , chief executive of the BBA said: "The report and discussion document provide some useful food for thought but if some of the recommendations are adopted it could leave customers exposed just as economic conditions are worsening.

"The industry has moved on since the Competition Commission research has been carried out. Customers are better able to shop around and make comparisons, there is more choice around and customers are provided with a separate document showing the key facts of the policy before they take it out.

"There are some issues that concern us and we shall respond to the discussion document explaining what those concerns are. It's important that customers don't end up finding themselves worse off as a result of unintended consequences."