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The Competition Commission is inviting evidence from interested parties following the Office of Fair Trading’s (OFT’s) decision to refer the market for the supply of payment protection insurance in the UK to the commission.
The market reference follows an initial OFT study into the sector and a public consultation.
John Fingleton, OFT chief executive, says: “Our examination of the evidence presented to date gives us reasonable grounds to suspect that there are features of this market which restrict competition.
“Despite some evidence of a degree of consumer satisfaction with aspects of the product, the evidence as a whole suggests consumers get a poor deal. This referral will enable the Competition Commission to undertake a thorough investigation of the market and, if necessary, ensure that appropriate remedies are put in place.”
However, Michael Coogan, director general of the Council of Mortgage Lenders, says: “This referral sends out entirely the wrong message to consumers.
“While we will co-operate as fully as possible with the Competition Commission to examine the issues, we are extremely disappointed that the special and unique position of mortgage payment protection insurance has been ignored by the OFT in reaching this counter-productive decision.”
Interested parties are asked to write to the commission before 2 March 2007.
More information is available at www.competition-commission.org.uk.
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