In our previous blog on 13 February 2009 (see our previous blog here), we wrote that the Competition Commission proposed prohibiting the sale of all PPI alongside a credit product eg a loan within 7 days of selling a credit product to that customer. This prohibition was to come into force in 2010. Barclays Bank, supported by Lloyds Banking Group and Shop Direct Group Financial Services Ltd, took the matter to the Competition Appeal Tribunal (CAT) to appeal this measure.
In a partial victory for the sellers of PPI, Barclays Bank won a part of the appeal against the Competition Commission. In so doing the CAT said that the Commission had failed to take into account the convenience to the consumer of obtaining insurance at the same time as purchasing a credit product when considering whether it was proportionate to include the prohibition in the package of remedies proposed. The Competition Commission is, therefore, to review its ban in light of this decision and has noted that they will "study the judgment closely before deciding their next steps".
It should be noted that the CAT ruled in favour of the Competition Commission on other matters and the judgment did not question their findings on the lack of competition in the market.