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Product category: Pensions and retirement
News Release from: Defaqto | Subject: PPI
Edited by the Insidemoneytalk Editorial Team on 09 June 2008

Defaqto response to the Competition
Commission provisional findings report

Defaqto has welcomed the publication by the Competition Commission of its provisional findings in its inquiry into the Payment Protection Insurance market.

Many of the issues reported on by the Competition Commission have been highlighted by Defaqto for some time, and the need for change was discussed in Defaqto's recent report "Payment Protection Insurance 2008, The Party's Over" In particular Defaqto welcomed the Commissions' proposals to make products more easily comparable for consumers, and the requirement for providers to make this information available for comparison websites such as www.defaqto.com

Defaqto has always believed consumers should be given enough information to enable them to make better financial decisions, rather than simply being sold a product without the full picture of what they are getting.

Brian Brown, Head of Insight at Defaqto says: "Only when consumers are provided with an informed choice can they make an informed decision, and any final decisions taken by the Competition Commission should bear this in mind." But care needs to be taken says Brown: "There is a danger that the changes proposed by the Competition Commission could actually leave more people unprotected, which could be bad for both them and the wider economy, if debt is left unprotected.

"At a time of economic uncertainty customers need to think about whether they have enough protection in the event of unemployment or disability.

Any remedies imposed by the Competition Commission must ensure that customers are not dissuaded from at least considering buying a PPI product.".

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