Mortgage PPI 'should be excluded from Competition Commission inquiry'

Date:Friday 12th December 2008
Author: Max Freedman

Mortgage payment protection insurance (MPPI) should not be included in a Competition Commission inquiry about the insurance type, it has been claimed.

Chris Cummings, director general of the Association of Mortgage Intermediaries, said that the MPPI market is not like other forms of PPI which cover products such as unsecured loans and credit cards.

He said that MPPI has a "robust and principally advised sales process from which consumers benefit".

The Competition Commission has suggested banning single-premium PPI policies and making providers wait two weeks before offering the product in an attempt to increase competition within the market.

Mr Cummings welcomed the fact that the 14-day delay does not apply to intermediaries but also stated that the commission should not adopt a "one size fits all approach to their investigation".

Provisional findings by the commission were that consumers are "hindered" in comparing various PPI products.

Reasons for this include PPI being bundled with other products and a lack of clarity and simplicity in terms, conditions and the information given to consumers.