The UK Competition Commission publishes for consultation its proposed remedies to improve competition in payment protection insurance market (PPI)

Summary The Competition Commission has recently invited consultation on its proposed remedies to improve competition in the payment protection insurance (PPI) market. The Competition Commission designed the proposed remedies to overcome a “point-of-sale” advantage that suppliers of loans enjoy. The proposed remedies include: requiring retailers to provide more information about their PPI product offers to consumers and regulators; a prohibition on single-premium PPI policies; and a prohibition on the sale of PPI at the point-of-sale. Although these remedies may reduce the point-of-sale advantage, they all have some drawbacks. This reflects the difficulty in finding remedies in markets such as PPI, where the main problem is customer reluctance to shop around. Background PPI is a type

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David Shaharudin, The UK Competition Commission publishes for consultation its proposed remedies to improve competition in payment protection insurance market (PPI), 13 November 2008, e-Competitions Bulletin Commitment Decisions, Art. N° 23014

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