We use cookies to allow us and selected partners to improve your experience and our advertising. By continuing to browse you consent to our use of cookies. You can understand more and change your cookies preferences here.

Coronavirus Read our latest advice

PPI law changes aid consumers from today

New rules will tighten up the selling of PPI


You may be spending money on expensive insurance you’ll never be able to claim on

New rules on the sale of payment protection insurance (PPI) come into force today, including a key change that will ban point-of-sale PPI sales.

The new rules imposed by the Competition Commission mean that there is now a ban on selling unemployment, sickness or accident insurance at the point of sale on a credit product such as an unsecured loan, credit card or mortgage. PPI can only be sold seven days after the credit product or after the provision of a personal quote, whichever is later.

Tighter PPI selling rules

Other requirements imposed by the Competition Commission include:

  • an obligation to provide a personal PPI quote, setting out the cost of PPI along with details of the cover provided
  • an obligation to provide information in marketing material about the cost of PPI and ‘key messages’, for example making it clear that PPI is optional and available from other providers
  • a ban on the selling of single-premium PPI policies, although in practice firms have already stopped selling single premium PPI following action by the Financial Services Authority (FSA)
  • to send out an annual review that sets out the cost of PPI and includes a reminder of the consumer’s right to cancel.

PPI providers also have to provide information to the Office of Fair Trading (OFT) and the Consumer Financial Education Body (CFEB) for monitoring and publication purposes.

Which? welcomes PPI changes

Which? insurance expert Martyn Saville said: ‘These changes have been a long-time coming, but they are nevertheless welcome. The mis-selling of PPI has been scandalous, and these provisions will help avoid future problems.

‘Which? has long campaigned on PPI and it remains a poor-value product for most consumers, many of whom would be far better off considering a combination of income protection, life insurance and critical illness cover.’

More on this …

  • Which? PPI campaign – use our free online tool to lodge your PPI mis-selling claim
  • Best Rate credit cards – we round up the best credit cards on the market
  • Which? Money Helpline – give our experts a call if you’re struggling with a PPI problem
Back to top
Back to top