In a report published in January 2009, the Competition Commission proposed a prohibition on the sale of payment protection insurance policies (PPI) at the point of sale (see our earlier blogs on the topic, including here). Following a legal challenge by Barclays Bank Plc to the proposed prohibition, the Competition Appeal Tribunal asked the Competition Commission to reconsider the advantages and disadvantages of its proposed remedies package.

After carrying out a detailed analysis of the likely effect of such a prohibition, on 14 October 2010 the Competition Commission published a report in which it concludes that the benefit of a package of remedies, including the prohibition, by introducing greater competition and choice and lower prices, outweighs the disadvantages, including the inconvenience to some that they will not be able to purchase PPI at the point of sale. Those selling PPI will have to wait seven days before approaching a customer and will have to offer personalised quotes, annual statements and improve the information given to customers. The ban will apply to PPI in respect of unsecured personal loans, credit card payments, mortgages and secured loans but not to PPI in respect of retail credit accounts (store cards).

The final report published by the Competition Commission on 14 October 2010 can be found here.