On 29 July 2010, the Competition Commission published for consultation its provisional decision on remedies in relation to retail payment protection insurance (PPI). Please click here to view the decision. This follows the Competition Commission’s reconsideration of its decision to impose a prohibition on selling PPI at the credit point of sale (the point of sale prohibition (POSP)) following remittal of certain issues by the Competition Appeal Tribunal. Please click here to view our previous blog on this issue.

The Competition Commission has provisionally concluded, on the basis of new evidence (including a customer survey), that it would no longer be effective or proportionate to impose the POSP remedy in relation to retail PPI. The Competition Commission has also provisionally decided to impose a remedies package that includes:

1. obligations to ‘unbundle’ retail PPI from merchandise cover;
2. to provide certain standard information, personal quotes and annual reminders and reviews to consumers;
3. a requirement for providers to supply information to the new Consumer Financial Education Body for its price comparison tables; and
4. to prohibit the sale of single-premium PPI policies.

The Competition Commission invites comments in writing by 3 September 2010 and hopes to announce its final decision in relation to all PPI products during September 2010.

To view other blogs relating to PPI, please click here and here.