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‘Ban banks from protection hard sell’

Paymentcare is calling for a ban on banks selling payment protection insurance to customers when signing a loan agreement because of concerns over misselling.

The call comes in support of the recent appeal by Citizens Advice to the Office of Fair Trading to launch a probe into the multi-billion-pound PPI industry.

Paymentcare managing director Shane Craig says the UK should switch to a US-style system where banks are not allowed to push PPI or ASU cover to borrowers when they are signing a loan agreement. He claims that this would greatly reduce the high incidence of misselling of expensive and often use- less cover.

A change in the Consumer Act would also help protect consumers by forcing lenders to add a disclaimer on all loan products, making it clear that PPI is not compulsory for borrowers, as well as an outright ban on single-premium payment protection policies.

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