The banking industry has abandoned a legal fight over the mis-selling of payment protection insurance (PPI).
The British Bankers’ Association, which fought the case, said it would not appeal after losing a court challenge against new rules on mis-selling.
Separately, Barclays Bank said it had set aside £1bn to pay PPI compensation, and RBS said it would not contest the court ruling.
Last week, Lloyds Banking Group made a £3.2bn provision for possible claims.
PPI policies are supposed to cover loan repayments if someone falls ill, has an accident or loses their job.
But the policies were mis-sold, many to self-employed or unemployed people who would not have been able to claim, and to consumers who did not realise they were taking out a policy.
Last month the High Court ruled that the banks were at fault.
In a statement the BBA said: ‘In the interest of providing certainty for their customers, the banks and the British Bankers’ Association have decided that they do not intend to appeal.’
Royal Bank of Scotland confirmed on Monday that it would also be addressing customers’ complaints, but said it had yet to decide how much to set aside for possible claims.
RBS said in a statement: ‘We are already in discussions with the FSA to clarify its requirements and the implications for our customers and shareholders.
‘This is an important step for all UK banks in our efforts to restore the confidence and trust of consumers,’ it said.
HSBC has yet to make a statement on the issue following the BBA’s announcement. The bank is due to release a first-quarter trading update later on Monday.
Barclays chief executive Bob Diamond said the bank would now begin the process of compensating customers.
‘We don’t always get things right: when we get them wrong, we apologise and put them right.
‘We have taken this decision because it is in the best interests of our customers, as well as for Barclays and its shareholders. Creating certainty, particularly regarding past issues, is of benefit to all parties,’ Mr Diamond said.
The Financial Ombudsman Service welcomed the banks’ decision to deal with the mis-selling.
‘It’s very good news that the banks will not be appealing the High Court’s clear-cut judgment, which endorsed the ombudsman and FSA’s approach to PPI complaints,’ said chief ombudsman Natalie Ceeney.
‘Consumers should come to us at the ombudsman if they’re unsure about what to do next. Meanwhile we will be working with the banks, over the coming weeks, to ensure that consumers’ complaints are dealt with fairly and promptly.’
The Financial Services Authority has estimated that banks will have to pay up to £4.5bn to settle the thousands of claims.
PPI Claims News
LLoyds TSB PPI Claims Information
At Lloyds TSB we are committed to making it as easy as possible to resolve your complaint. We’d like to discuss the details of your case with you directly so your concerns can be resolved as quickly as possible. You can write to us at Lloyds TSB, PPI Customer Services, BX1 1LT or call us on 0845 601 2683 (lines open 8am to 6pm, Monday to Friday and 9am to 2pm Saturday)
PPI Claims are falling according to regulator
Complaints about PPI Claims have fallen for the first time in three years according to the Financial Conduct Authority (FCA). In the 1st half of 2013 1.8 million PPI complaints were recieved compared to 2.2 million PPI complaints recieved in the previous 6 month.
However reports like these need to be questioned based on figures reported previously from the FCA within the 1st half of the year. FCA reports which seem to contradict these new findings such as the monthly PPI claims payout figures indicate PPI claims rising OR that claims are increasing in value
PPI Claims – Leicester, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks in Leicester. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
We will work with you to ensure that you get the correct PPI settlement or refund and any and all fair compensation that may be due to you as a result of PPI mis-selling. We will deal directly with your PPI provider, be it a bank or insurance company and neither we nor our specialist claims team will be fobbed off by them at any stage. If their offer is too low or derogatory and they won’t take us seriously we will challenge them on your behalf.
PPI Claims On Your Barclaycard: How to Claim & FAQ’s
Understand how to make a claim on PPI, otherwise known as Payment Protection Insurance and the process involved should you wish to reclaim PPI on your Barclaycard.
Maple Leaf Financial has over 10yrs experience in dealing with PPI claims. If you have any problems making a PPI Claim on your Barclaycard, we are here to assist you. We include information below on
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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