Following the announcement last week that Lloyds Banking Group have set aside £3.2bn to compensate those who were missold Payment Protection Insurance (PPI) and a similar decision by Barclays this morning (9 May), the UK’s banking industry has dropped its plans to appeal a ruling that was forcing it to repay consumers in full.
The British Bankers Association (BBA) today announced that it would no longer appeal the ruling of the high court, meaning that the banks must continue to compensate consumers if they were missold PPI.
Last week, Which? took out an advert in The Times, calling for the BBA to admit defeat over the review.
Which? on the BBA’s PPI announcement
As the BBA announced that it has dropped its court action against the Financial Services Authority (FSA) about the handling of PPI complaints, Which? chief executive Peter Vicary-Smith, said:
‘We’re delighted that the BBA has at last seen sense. Hopefully this will be a watershed moment in how banks treat their customers.
‘It was a colossal error of judgment by the BBA to have brought this case in the first case, which has even further diminished the banking industry’s reputation in the eyes of consumers.
‘PPI was mis-sold and complaints about it mishandled on an industrial scale for well over a decade. Now the industry must make amends by quickly reimbursing the millions of people it has ripped off.
‘There could still be huge numbers of people out there who were duped into buying PPI and unaware they can make a claim. We urge these people to contact their bank immediately to ask for their money back.’
Reclaiming PPI premiums
The FSA has carried out 24 PPI-related enforcement actions against banks and other financial firms since 2005, levying a total of £12.6 million in fines for mis-selling.
If you think you may have been mis-sold PPI and have not yet made a complaint, the Which? PPI reclaiming tool is a quick and easy way to claim back your money.
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