Market Investigation Into Payment Protection Insurance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market Investigation Into Payment Protection Insurance write by Bernan. This book was released on 2008-01-01. Market Investigation Into Payment Protection Insurance available in PDF, EPUB and Kindle. On 7 February 2008, The Office of Fair Trading (OFT) referred the supply of Payment Protection Insurance (PPI) to non-business customers in the UK to the Competition Commission for investigation under Section 131 of the 2002 Enterprise Act. This report sets out the Commission's provisional findings.
Payment protection insurance market investigation
Payment protection insurance market investigation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Payment protection insurance market investigation write by Great Britain: Competition Commission. This book was released on 2012-04-11. Payment protection insurance market investigation available in PDF, EPUB and Kindle. In this report the Competition Commission (CC) confirmed that it would introduce a remedies package based around a point-of-sale prohibition for all forms of payment protection insurance (PPI) (with the exception of retail PPI) after detailing how it will benefit customers. The point-of-sale prohibition would stop the completion of sales of PPI during the sale of the associated credit product such as a personal loan. It was one of a package of measures the CC planned to introduce following its investigation into PPI (2009, ISBN 9780117067363), which concluded that businesses that offer PPI alongside credit face little or no competition when selling PPI to their credit customers. The report and in particular the proposed point-of-sale prohibition were the subject of a legal challenge to the Competition Appeal Tribunal (CAT) by Barclays, supported by Lloyds Banking Group and Shop Direct Group Financial Services Ltd. Whilst upholding the CC's conclusions as to the competition problems in this market, the CAT ruled that it must in particular consider further the role and importance of a potential drawback to the prohibition, namely that it might inconvenience customers. Following the CAT's judgment, the CC carried out a detailed analysis of the likely effects of such a prohibition and concluded that the benefits of a package of remedies including the prohibition, by introducing greater competition and choice and lower prices to the market, would outweigh the disadvantages, in particular the potential inconvenience to some customers.
Market Investigation Into Payment Protection Insurance
Market Investigation Into Payment Protection Insurance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market Investigation Into Payment Protection Insurance write by Great Britain. Competition Commission. This book was released on 2009. Market Investigation Into Payment Protection Insurance available in PDF, EPUB and Kindle.
Market Investigation Into Payment Protection Insurance
Market Investigation Into Payment Protection Insurance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market Investigation Into Payment Protection Insurance write by . This book was released on 2009. Market Investigation Into Payment Protection Insurance available in PDF, EPUB and Kindle.
Market Investigation Into Payment Protection Insurance
Market Investigation Into Payment Protection Insurance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market Investigation Into Payment Protection Insurance write by Great Britain. Competition Commission. This book was released on 2009. Market Investigation Into Payment Protection Insurance available in PDF, EPUB and Kindle. The Office of Fair Trading (OFT) referred the supply of Payment Protection Insurance (PPI) to non-business customers of the UK to the Competition Commission for investigation under s. 131 of the 2002 Enterprise Act on 7 February 2008. The Commission's provisional findings were published in June 2008 (ISBN 9780117038622). PPI covers repayments on the insured credit product if the borrower suffers an insured event, usually accident, sickness, unemployment or death. PPI is sold to cover a variety of credit products, but over 90% of the PPI sold in the UK in 2006 was either personal loan PPI (PLPPI), credit card PPI (CCPPI), mortgage PPI (MPPI) or second-charge mortgage also known as secured loan PPI (SMPPI). Other forms of PPI include motor insurance and retail finance. Most PPI policies are sold by distributors at the point of sale of the credit being insured. The PPI policies sold are underwritten by insurers. In 2006 customers in the UK paid £4.4 billion in premiums to be covered by PPI policies and such policies are usually sold either face-to-face; over the telephone or via the internet. PPI policies are paid either through a regular monthly premium or a single premium, which is added to the loan amount when the loan is agreed. The Competition Commission found that each credit provider and financial intermediary faces little competition for the sale of PPI when it is sold in combination with credit it insures. The lack of competition makes PPI highly profitable, with the Commission estimating that the 12 largest distributors of PPI make profits in excess of the cost of capital of £1.4 billion in 2006. To address the lack of competition, the CC will be introducing a package of measures to introduce competition in the market including: a ban on the sale of PPI during the sale of the credit product and for seven days afterwards, a prohibition on single-premium policies, personal PPI quotes, annual statements and measures to make sure that improved information is available to consumers to make it easier for them to compare and search for products and switch policies at a later point.
