Barclays is to challenge a recent decision by the Competition Commission to ban the sale of the payment protection insurance alongside credit cards, loans and mortgages. From October 2010 the sale of PPI will be banned forcing providers to wait seven days before contacting customers and try to sell them the cover.

The ban is designed to increase competition in the payment protection insurance market, It’s hoped the changes will make it easier for borrowers to change providers and get better rates. It will also help borrowers get rid of the little voice in their heads that says ‘If I don’t take the insurance, they won’t give me the loan”

Barclays justify their case by claiming that the evidence collected by Competition Commission’s investigation is not justified.

A Barclays spokeswoman said: “The Barclays appeal does not challenge the whole report but is targeted specifically against two points.

“The main area of concern is the point of sale ban which, it is felt, is not justified by the evidence that has been provided.

“Additionally, the scope of the market definition set by the Competition Commission is being challenged.

“The decision to appeal these points has not been taken lightly. However Barclays will continue working on the implementation of all of the remedies contained in the Competition Commission’s report as they are applicable.”

Lloyds Banking Group is also supporting the group, yes – the same Lloyds that the  Government holds a 43% stake in!

Source: The Press Association

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