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The Actuary The magazine of the Institute & Faculty of Actuaries

Point-of-sale ban on PPI appealed

The Competition Commission recently proposed radical changes to the payment protection insurance (PPI) market, including a ‘point of sale prohibition’ (POSP) — in other words, a ban on selling PPI at the time that credit is arranged.

Barclays Bank has been successful in its appeal against the Commission’s findings. The Competition Appeal Tribunal has concluded that the Commission had failed to take into account the loss of convenience which would flow from the imposition of the POSP in assessing whether it was proportionate to include it in its proposed remedies package. The Tribunal decided to quash that part of the report which imposes the POSP as part of the proposed remedies package and remit the question whether a POSP should be so included for the further consideration of the Commission.