'Banks shouldn't sell PPI with loans'

Barclays Plc, Lloyds TSB Group Plc and other UK banks that offer payment protection insurance should be prevented from selling the product at the same time as the underlying loan, a British antitrust regulator said.

The Competition Commission refrained from recommending a ban or price cap on so-called PPI, which generates annual revenue of 5.5. billion pounds for banks, following a 21-month investigation.

The regulator instead proposed in a report yesterday that customers be given personalized quotes, and that lenders and retailers be banned from grouping PPI with the underlying loan to give customers a single premium to pay.