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PPI tribunal victory claimed by Barclays
The Competition Appeal Tribunal has asked the Competition Commission (CC) to make changes to its plans to toughen up rules on Payment Protection Insurance (PPI).
Previously, the CC announced that the immediate sale of the cover alongside loans and credit cards would be outlawed.
However, the tribunal now wants this proposal to be amended, following an appeal on the issue from Barclays.
PPI, a type of insurance which provides cover for loan repayments in cases where the policyholder suffers a sudden drop in income, has been criticised by consumer groups.
One of the main objections to PPI had been the fact that it was often sold as a "default" option alongside loans.
Customers therefore sign up to optional insurance at point of sale, without realising that it is not necessary to do so.
Doug Taylor at Which? said that the tribunal's decision was "disappointing".
He added: "The CC must now come back with a stronger case for a ban.
"This is just a reprieve for point of sale, not a let off."
© Copyright
Previously, the CC announced that the immediate sale of the cover alongside loans and credit cards would be outlawed.
However, the tribunal now wants this proposal to be amended, following an appeal on the issue from Barclays.
PPI, a type of insurance which provides cover for loan repayments in cases where the policyholder suffers a sudden drop in income, has been criticised by consumer groups.
One of the main objections to PPI had been the fact that it was often sold as a "default" option alongside loans.
Customers therefore sign up to optional insurance at point of sale, without realising that it is not necessary to do so.
Doug Taylor at Which? said that the tribunal's decision was "disappointing".
He added: "The CC must now come back with a stronger case for a ban.
"This is just a reprieve for point of sale, not a let off."
© Copyright
Published: 19/10/2009
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.