FLA disappointed with CC's PPI recommendations

The Finance and Leasing Association, which represents a wide variety of lenders who also sell payment protection insurance (PPI), today voiced its disappointment at the Competition Commission's provisional decision on remedies for the PPI market.

The remedies proposed by the Commission include:

Banning the sale of PPI to a customer within 14 days of taking out a loan.
A ban on the sale of single-premium PPI policies.

FLA Director General Stephen Sklaroff said: "Preventing customers from buying PPI when they take out new credit will mean that many vulnerable people go unprotected just when unemployment is rising sharply. The loss of single premium PPI will also result in worse terms for many customers. The Commission's proposals, which will raise the cost of credit, have ignored the Prime Minister's concerns about rising interest rates. We call on the Commission, even at this late stage, to reconsider."