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MSE News: PPI sales ban setback

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This is the discussion thread for the following MSE News Story:
"The ban on debt insurance sales in its current form cannot go ahead, a tribunal has ruled..."
"The ban on debt insurance sales in its current form cannot go ahead, a tribunal has ruled..."
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PPI sales ban setback
PPI sales ban setback

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The high street bank has challenged a recent decision by the Competition Commission to ban the sale of the insurance alongside credit cards, loans and mortgages from October 2010.
Once the ban comes into force providers will have to wait for seven days before they can contact customers to sell them the cover.
In a Competition Appeal Tribunal hearing in September, Barclays argued that the point of sale ban was not justified by the evidence collected as part of the Competition Commission's investigation.
The Competition Appeal Tribunal is due to give its verdict in the case on Friday.
Barclays was supported in its appeal by Lloyds Banking Group, in which the Government holds a 43% stake, and Shop Direct Group Financial Services.
It was opposed by the Competition Commission and City watchdog the Financial Services Authority.
The point of sale ban is one of a number of measures which will be introduced next year in a bid to increase competition in the Payment Protection Insurance (PPI) market, alongside changes to make it easier for people to shop around for the cover and to change providers.
The changes being implemented by the Competition Commission are expected to lead to a steep fall in the £4 billion a year that banks and insurers receive from PPI sales.
PPI covers loan repayments if the holder is unable to work due to an accident or illness or if they lose their job.
http://money.aol.co.uk/barclays-awaits-ppi-decision/article/20091016010037188906387
The tribunal seems to have agreed with Barclays that it wont really improve competition in the market. However, the FSA could introduce the same measure, but on the basis that it helps to protect consumers from mis-selling.
The issue with PPI is NOT that it is inherently bad. The issue was primarily that it was sold in a way which implied it was mandatory, and people were not told that they could shop around.
It is perfectly possible to address both of those points without banning its sale up-front.
And banning sale up-front will simply mean that hardly anyone will buy PPI at all, and that they'll end up in financial difficulties when they lose their job or get sick.