Moves aimed at cracking down on the sale of payment protection insurance (PPI) are going ahead despite an appeal by banking giant Barclays.
PPI covers debt repayments if a policyholder is unable to work due to an accident or illness, or if they lose their job.
The Competition Commission heavily criticised the PPI market when it released a report in January, saying single premium cover caused considerable concern as it required the entire cost of the policy to be paid upfront, often adding to the debt that is being taken out.
This can lead to people paying considerably more interest on their debt, while in some cases consumers claimed the premiums were added to the loan without them even knowing about it.
The watchdog has now launched a consultation on recommendations in the hope of avoiding any delay caused by the ongoing appeal.
The sale of single premium PPI has now been banned after the Financial Services Authority (FSA) decided to bring forward the Commission's recommendation.
An appeal of the commission's decisions was filed by Barclays in March, in particular in protest at the ban. The hearing is set to take place on September 10.
Peter Davis, Competition Commission deputy chairman and inquiry chairman, said: "Taking these steps now will help ensure there is no unnecessary delay in resolving the significant competition issues that we found in this market and in delivering a better outcome for consumers.”
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