Lenders to face 7-day PPI ban

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Lenders are to face severe restrictions on selling PPI, and will be unable to sell the product within seven days of agreeing a loan.

A report by the Competition Commission says the move will help consumers secure lower prices and better choice in the loan insurance market. The Commission says a "point-of-sale advantage" means customers often feel they should buy their PPI directly from their lender, leading to high prices. Following outcry from consumer groups over a lack of competitiveness in the sector, and recent investigations into the mis-selling of PPI, the Competition Commission investigated way to improve choice. Today's report is the culmination of a four-year campaign for change in the industry. Peter Da...

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