Payment Protection Insurance (PPI)
The British Bankers’ Association (BBA) has announced it will not appeal the High Court’s ruling against its challenge to how payment protection insurance (PPI) compensation claims should be handled.
The High Court last month dismissed the BBA’s action against the Financial Services Authority (FSA) guidelines on compensation for PPI mis-selling.
It said in a statement: ‘In the interest of providing certainty for their customers, the banks and the BBA have decided that they do not intend to appeal.‘ We continue to believe that there are matters of important principle which we will be taking forward in other ways with the authorities.
The BBA’s move follows Barclays’ decision to join Lloyds in declaring it would not back any appeal. Barclays said it had made a £1 billion provision for the costs of PPI compensation, while HSBC said it had set aside $440 million (£268.7 million).
Barclays said it had agreed with the FSA to begin to process all on-hold and new PPI complaints. Chief executive Bob Diamond said: ‘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.’ ‘We don’t always get things right for our customers; when we get them wrong, we apologise and put them right. That’s our commitment to our customers, and it applies to the way in which we will deal with PPI complaints.’
Lloyds said last week it had made a £3.2 billion provision for the cost of covering claims.