PPI providers face sales restrictions by 2010

Sales of Payment Protection Insurance (PPI) in the UK will undergo significant reform over the next year to comply with new measures proposed by the Competition Commission. In its final report on the sector, the Competition Commission said it would press ahead with a ban on single premium PPI policies and a ban on credit providers from approaching the policyholder to buy PPI in the first week of the contract, despite protests from the insurance industry. The bans are expected to come into force by October 2010 while other measures, such as information requirements on providers, are expected to be in place by April 2010.