Home Legal Barclays set to learn payment protection insurance (PPI) decision

Barclays set to learn payment protection insurance (PPI) decision

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Barclays is due to find out if it has been successful in its bid to lift a future ban on the sale of controversial payment protection insurance (PPI) alongside credit agreements.

The high street bank has challenged a recent decision by the Competition Commission to ban the sale of the insurance alongside credit cards, loans and mortgages from October 2010.

Once the ban comes into force providers will have to wait for seven days before they can contact customers to sell them the cover.

In a Competition Appeal Tribunal hearing in September, Barclays argued that the point of sale ban was not justified by the evidence collected as part of the Competition Commission’s investigation.

The Competition Appeal Tribunal is due to give its verdict in the case on Friday.

Barclays was supported in its appeal by Lloyds Banking Group, in which the Government holds a 43% stake, and Shop Direct Group Financial Services.

It was opposed by the Competition Commission and City watchdog the Financial Services Authority.

The point of sale ban is one of a number of measures which will be introduced next year in a bid to increase competition in the PPI market, alongside changes to make it easier for people to shop around for the cover and to change providers.

The changes being implemented by the Competition Commission are expected to lead to a steep fall in the £4 billion a year that banks and insurers receive from PPI sales.

PPI covers loan repayments if the holder is unable to work due to an accident or illness or if they lose their job.

With Press Association