The PPI Order is designed to remedy the adverse effects on competition that the Competition Commission found in its inquiry into the sale of PPI in the UK.
The order prohibits:
- the sale of PPI at the credit sale
- the sale of PPI before the start of the credit sale
- payment for PPI by single premium
The PPI Order also obliges PPI providers to submit annual compliance reports to the Competition and Markets Authority (CMA). The compliance reporting template should be used for submitting this report.
It also obliges providers to:
- provide information about PPI
- provide an annual review or annual reminder
- disclose claims ratios
- provide a personal PPI quote
- offer retail PPI separately when sold in a package of insurance
- offer rebates on terminated PPI policies when these are paid by annual premium
- conduct a mystery shopping exercise (only if PPI annual turnover exceeds £60 million)
- appoint a compliance officer
See our collection of letters sent to companies about their non-compliance with the PPI Order.
Please direct all queries to Natalie Lam at the CMA.