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PPI ban would hurt consumers, say brokers
13 November 2008 16:37
A possible ban on payment protection insurance (PPI) would do more harm than good, according to finance brokers.
Earlier today (November 13th), the Competition Commission published the findings of an investigation into PPI plans, recommending a ban on selling the product within 14 days of taking out a loan.
What's more, the commission also concluded that single premium policies should be removed from the market completely, much to the annoyance of the Association of Finance brokers (AFB)
Robert Sinclair, director of the AFB, said that a complete ban on single premiums failed to recognise the benefits of the product.
He added that while the group acknowledged the Competition Commission's anxieties over some parts of the product and the terms of refund, he would rather have seen a more considered solution, rather than a total ban on the single premium.
The AFB is an organisation which exists to help and support professional secured loan brokers.
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