- Monday, 17 May 2010The Citizens Advice Bureau, which provides advice on a range of topics including
debt management, has welcomed the prohibition on Payment Protection Insurance. (PPI).
On May 14th the Competition Commission (CC) announced that lenders could no longer sell PPI at the same time that consumers were borrowing money through a personal
loan or a credit card.
Peter Tutton, Citizens Advice department policy officer, said: "We warmly welcome Friday's decision by to the CC confirming the case for point of sale prohibition for PPI."
He added that the wider agenda concerning PPI was not finished although this was a step in the right direction.
The government needs to ensure better protection for those in debt and it is vital to make sure the
debt management plan contained in the Tribunals, Courts and Enforcement Act 2007 comes into force, warned Mr Tutton.
The statutory
debt management plan means that consumers only pay what they can afford and their debts are protected from further action.
PPI protects repayments if the borrower loses their income through illness, accident, unemployment or even death. , however regulators have previously found that it is often misold to consumers.
The CC hopes that this prohibition will encourage borrowers to look around for the best PPI if they decide they need it.
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