The commission published in November a series of proposals for consultation, including a 14-day minimum period between the sale of credit and payment protection insurance and a ban on single premium PPI policy sales.

Chris Cummings, director general of the Association of Mortgage Intermediaries and the Association of IFAs, demanded mortgage payment protection insurance be excluded from the Competition Commission’s investigation.

Mr Cummings said MPPI was different to other forms of the product because of the role that intermediaries play in selling the insurance and urged the Commission to avoid a one-size-fits-all approach to the product.

He said: “We maintain that MPPI should be excluded from the investigation due to the robust and principally advised sales process from which consumers benefit.

“We were pleased to see confirmation that the prohibition of the active sale of PPI by a customer within 14 days of the sale of credit had not been applied to intermediaries and only distributors.

“However, we also call again for the Commission to acknowledge and understand the benefits to consumers of using intermediaries who act as agents of the client.”

Robert Sinclair, director of the Association of Finance Brokers, said he broadly supported the plans but hit out at the proposed single premium prohibition.

He said: “At a time when consumer confidence is at an all time low, an increased vulnerability of consumers is evident in this economic climate, we urged the Commission not to reduce further consumers’ access to protection products, at a time when they are most needed.”