The Competition Commission (CC) has recently published its report on Payment Protection Insurance (PPI). The part of this which bans lenders selling PPI at the same time as a loan, is now being contested by Barclays .
The CC is instructing all firms to stop selling single premium PPI after 1 October 2010. It has also banned firms from selling PPI at the same time as a loan, at the point of sale of the loan .
Instead those firms offering a loan or credit must wait a week before they can sell PPI to the borrower. It is this that Barclays are appealing against.
PPI is sold to borrowers to cover their loan repayments in the event that they lose their income through sickness or unemployment . A significant amount of revenue for British Banks is generated by PPI and even while the banks want to support the CC findings, they also need to ensure that they retain revenue.




