BBA laments PPI point-of-sale ruling

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BBA laments PPI point-of-sale ruling

Mon 17th May 2010

The British Bankers' Association (BBA) has defended payment protection insurance (PPI) products and lamented the recent decision by the Competition Commission to prohibit point-of-sale availability.

A spokesperson for the industry organisation suggested that such financial tools are useful and provide a safety net if people lose their jobs.

By prohibiting point-of-sale access to PPI there may be a reduction in the uptake of such cover, which could lead to more bankruptcy as a result of debts not being insured.

"We are still not convinced that encouraging customers to defer this part of the decision is a responsible way to tackle any perceived competition issues," remarked the spokesperson.

The BBA representative highlighted the importance of having some form of cover, particularly in the current economic climate.

Elsewhere, Which? claimed that banning companies from selling PPI at the point of sale will give them a chance to consider all their options and make a more informed decision.

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