PPI sales restrictions take effect

The Competition Commission’s first set of remedies for payment protection insurance (PPI) were introduced on Saturday.

Firms now need to include certain information in marketing material, including the cost of PPI and make it clear that this cover is optional and available from other providers.

They also have to provide an annual review setting out the cost of PPI and including a reminder of the consumer's right to cancel.

These changes focus on ensuring that consumers and the relevant authorities are given sufficient information about PPI by providers.

Ben Heffer, insight analyst for life and protection at Defaqto, welcomed the introduction of the new rules and hopes they will help consumers ensure they are properly covered.

"These changes represent another key step in addressing the well documented problems in the PPI market," he said.

"Critically, a line needs to be drawn under PPI to restore consumer confidence in protection products as a whole - and ensuring transparency in this market for consumers is a big step towards this.

"These measures will remind consumers of the need to review what cover they have and, if necessary, to shop around for an alternative policy that may more fully meet their needs.

"In addition, they will regularly prompt consumers to assess their protection needs more generally," he added.

Heffer emphasised that it was particularly important for people to have appropriate protection in place for their needs and circumstances.