Barclays has successfully won a review of the rules on selling Payment Protection Insurance (PPI) – a policy designed to allow borrowers to keep up loan repayments in the event of a loss of income.

The Competition Commission had imposed key restrictions on the sale of PPI, after complaints that banks and other lenders had been mis-selling personal loans.

But the Competition Appeals Tribunal has now ordered the Commission to reconsider if it was appropriate to ban banks selling PPI alongside personal loans in January. Barclays appealed against the ban in March, arguing that sales had been affected by the ban because it made buying PPI less convenient for consumers.

“Barclays has always held that the ban limits rather than enhances customer choice,” said a Barclays spokesman. “We will of course welcome the opportunity to continue to work with the Competition Commission as they rework their analysis.”

The Commission imposed the ban at the end of a two-year investigation in January, after finding that PPI was too expensive because of a lack of competition between providers. It had launched its inquiry in 2007 at the request of the consumer watchdog, the Office of Fair Trading.

Sally Bowyer, Managing Director of Brunel Franklin, stressed that vendors had a responsibility to ensure their products were appropriate for individual customers before completing the transaction. “Unfortunately, the mis-sale of PPI policies is by no means unusual. Customers may well wish to protect their loan repayments, but all too often they have been sold products that were completely unsuitable for their needs.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.