Insurance payment protection crackdown proposed

The Competition Commission has launched a campaign to stop the sale of payment protection insurance within 14 days of customers taking out a loan.

The schemes are designed to ensure customers can meet repayments even if they are made redundant or become ill, but many providers have been fined for mis-selling the products.

The organisation hopes introducing a two-week gap would alert consumers to the fact that PPI schemes are a separate product and give them the opportunity to shop around for more competitive quotes if they decide to proceed.

It has also suggested banning so-called ‘single premium' quotes where the cost of the insurance is added on to the amount owed on the loan, meaning customers are unable to cancel products or change providers.