The U.K. Competition Commission, or CC, Wednesday published a draft order for consultation setting out how measures to introduce competition into the Payment Protection Insurance, or PPI, market will be implemented.

MAIN FACTS:

-The measures were outlined when the CC published its final report into PPI in January this year, concluding that businesses that offer PPI alongside credit face little or no competition when selling PPI to their credit customers.

-To address the lack of competition, the CC announced its intention to introduce a package of measures to bring competition in the market.

-Measures included a prohibition on the sale of PPI during the sale of the credit product and for seven days afterwards; a prohibition on single-premium policies; and personal PPI quotes, annual reviews and other measures to make sure that improved information is available to consumers to make it easier for them to compare and search for products and switch policies at a later point.

-Although the CC's decision and proposed measures have since been appealed to the Competition Appeal Tribunal (CAT) by Barclays PLC (BCS), the CC has started consultation on the detailed implementation of the changes to enable it to move quickly once the appeal is finalised and it has considered the CAT's judgment.

-The appeal hearing takes place from Sept. 7-10.

-The CC has already carried out consumer research in order to ensure that the improved customer information contained in PPI quotes and annual reviews is set out in a clear and easily understandable format.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com