The Association of Mortgage Intermediaries (AMI) says it is 'disappointed' the Competition Commission has failed to make a distinction between direct and advised loan sales in its PPI inquiry .
AMI says the Commission should have treated the channels differently, as under the proposed rules intermediaries who agree a loan will not be able to market PPI to their client for seven days.
The Comission's report, which suggests delaying the time when a customer arranged a loan to when they can be sold PPI will increase competition and provide better prices and products for consumers.
However, AMI says the report has not recognised the separate role intermediaries play in arranging loans and insurance.
"AMI is disappointed that the Commission has not recognised the differences in the products and sales processes surrounding intermediated and direct mortgage PPI advice and sales. The Commission should have treated these two channels differently," says AMI director Robert Sinclair.
"The introduction of 7 day waiting periods or 24 hour consumer deferment will add cost and complexity to an already lengthy sales process."
AMI recognises the role the Commission's advertising and statementing provisions will play in encouraging consumers to shop around, but says many may not be aware that transferring a policy might leave them uninsured if they have recently developed a medical condition.
"Many consumers benefit from this protection and we hope that the changes demanded by the Competition Commission do not increase the numbers of vulnerable individuals who will then be wholly reliant on state benefits," Sinclair adds.
"We will continue to monitor developments closely and will inform members of changes they will need to make when dates are confirmed."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October