Barclays appeals loan-insurance ban
An appeal by Barclays Bank against a ban on selling payment protection insurance (PPI) alongside loans is to be heard by the Competition Appeal Tribunal (CAT).
The Competition Commission has banned banks from selling single premium PPI policies alongside personal loans by the end of May, and will extend the ban to credit cards in October next year.
The watchdog`s report found that nearly all PPI policies are sold at the point of sale, which does not allow consumers the opportunity to shop around for a better deal.
At the same time, these policies are often more expensive than they need to be, with many who take them out not understanding that they may not need such cover.
Barclays says the ban "has no proper evidential basis", and might result in borrowers putting themselves at risk by failing to take out any PPI at all.