AFB hits out at CC proposals
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Robert Sinclair, director of the Association of Finance Brokers says the Competition Commission's proposal for a ban on single premium payment protection insurance could be damaging for consumers.
Sinclair says: “We are concerned by the consumer impact of some of the recommendations made by the Competition Commission today. We will be responding to the recommendations in due course, and as always the final detail will be crucial.
“While we are concerned that a 14 day period prohibiting the sale of PPI may leave some consumers under-protected, we welcome the acknowledgement that intermediaries play a valuable role in the advice process, and that the 14 day period does not apply to them.
“We feel that a total ban on single premium fails to appreciate some of the product features offered by this product to more vulnerable consumers. The fact that they will be covered fully for the product term has been largely ignored.
"While we acknowledge Competition Commission’s concerns over some elements of the product design and refund terms for some single premium policies, we would have preferred to see other remedies relating to product design given further consideration, rather than the imposition of a total ban.”
Source:
Loan Distributor
