Banking industry gives up on PPI mis-selling battle

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.

Barclays Bank said it had set aside £1bn to pay compensation, HSBC £269m, while RBS said it too would not contest the court ruling.

Last week, Lloyds Banking Group made a £3.2bn provision for possible claims.

Peter Vicary-Smith of the consumers' association Which? said the banks had now seen sense.

"It was a colossal error of judgment by the BBA to have brought this case in the first place, which has even further diminished the banking industry's reputation in the eyes of consumers," he said.

"PPI was mis-sold and complaints about it mishandled on an industrial scale for well over a decade.

"There could still be huge numbers of people out there who were duped into buying PPI and unaware they can make a claim," Mr Vicary-Smith added.

The banks will soon find another way to fleece unsuspecting customers

The banks will soon find another way to fleece unsuspecting customers

I reckon one of the first casualties will be "free" banking.