SUBJECT PROPERTY...2020/04/14 · Swinger etux u t. 119 'Robert ayme obert O ayne ward wmger...
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A1 APPENDIX A Developments in PPI markets since the 2009 report Changes at the business and product offering levels 1. In 2008 there was a severe financial crisis followed by a recession. This has had significant impacts on the entire economy. There has been a massive supply shock: banks’ risk appetite has reduced which has decreased the quantum and volume of lending to consumers. In addition, some stand-alone providers have expressed concerns about, or experienced, increased levels of claims and adverse selection with respect to involuntary unemployment. 2. Since the second half of 2008 there have been some significant changes to the participants in PPI markets. In October 2008 Alliance & Leicester was taken over by Santander, which already owned Abbey. In January 2009 Lloyds TSB and HBOS merged to form LBG. Cattles, which was one of the largest suppliers of SMPPI, stopped selling PPI policies in February 2009 and is no longer providing credit. These changes did not result in an increase in competition in PPI markets. In addition, we noted that the creation of LBG was subject to concerns about whether it lessened competition in at least some markets, though the merger was cleared on public interest grounds. 1 3. There have also been some significant changes at the individual product levels. We look first at LBG’s July 2010 exit, and then set out other changes in paragraphs 6 to 17 for PLPPI, CCPPI, distributors generally, and stand-alone providers. We find that these changes occurred for a variety of reasons, but that none of the changes, at least among the large distributors, occurred because the suppliers in question had concluded that they could not continue in the market because of the possible impact of our remedies. 4. In July 2010 LBG informed the FSA and CC that it would stop selling PPI policies. For MPPI, all mortgage customers who bought PPI before 23 July would still be provided with PPI up to 20 November. For other PPI products it would stop offering PPI with effect from 23 July 2010 (with all sales to be completed by 31 July). This is discussed further in Appendix G. 5. Having considered all the evidence from LBG, we think that there are clear reasons for LBG’s current withdrawal from the market. In our judgement, we believe that LBG is likely to re-enter the market once the remedy package is in place. This judgement is based on what LBG told us, the extensive work already done on looking at a replacement product and the continuing work on this, and the significant opportuni- ties available to it to sell a product to its customers that it considers to be valuable to them. 6. With the withdrawal of single-premium PLPPI (see paragraph 4.2 of the 2009 report) some parties moved immediately or with some break to selling regular-premium PLPPI. However, as yet some have not replaced their single-premium product. Among the largest distributors of PLPPI: 1 The OFT’s report to the Secretary of State on this merger concluded that there was a realistic prospect of a substantial lessening of competition arising from the merger in three areas: personal current accounts, SME banking, and mortgages. See: www.oft.gov.uk/shared_oft/press_release_attachments/LLloydstsb.pdf.
SUBJECT PROPERTY...2020/04/14 · Swinger etux u t. 119 'Robert ayme obert O ayne ward wmger Chester Starr Knuth Land Company Keer urt Keeran etux 125 Orval Morrison Trust Laureen
