The law firm CMS Cameron McKenna, which specialises in financial services, has described banning the sale of payment protection insurance (PPI) at the same time as a loan as "unreal" and "absurd".
Simon Morris, a partner at the firm, said: "The move would be like saying that a car should be sold without tyres so that the motorist can then shop around for a better deal."
The suggestion was part of an extremely critical report by the Competition Commission regarding the problems that the PPI market is facing. The Commission also suggested a price cap as a temporary measure to lower the price of PPI products.
Mr Morris also commented that the Commission’s suggestion to ban firms from selling PPI to customers, in order to protect their loans or other credit products, demonstrated that they had no comprehension of how the business worked or how people behaved. He added: "People who buy a loan product are highly unlikely to want to shop around for insurance against future inability to pay. They will be the losers if the unexpected occurs."
Banning PPI alongside loans deemed absurd
Financial Services > Income lnsurance > News
Banning PPI alongside loans deemed absurd
Wed, 11 Jun 2008
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