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
Recommended links
Find and compare income protection insuranceIncome insurance introduction
Payment protection insurance information
Payment protection insurance quote
Banks face mass legal action over PPI mis-selling
Consumers need help to understand PPI
| Income Insurance news |
|---|
| ifs School of Finance launches qualification in long term care insurance - Fri, 05 Sep 2008 |
| Helpline for protection customers launched by Aegon - Thu, 04 Sep 2008 |
| Car retailers fined for selling unsuitable PPI policies - Wed, 03 Sep 2008 |
| More News |
Save on Your Mortgage
Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.
Protect Your Health
Find Critical illness, Life and Private Medical Insurance PMI policies.