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Banks still considering appeal on PPI
Originally posted by 5corpio
Banks still considering appeal on PPI
Senior banking executives are meeting to discuss appealing a ruling over Payment Protection Insurance (PPI).
Last week, the High Court ruled that banks had wrongfully sold PPI to millions and that they are now obliged to refund all affected customers. Lloyds, the biggest seller of PPI, said this week it would repay all customers missold such policies, other banks may continue to fight claims.
PPI is an insurance policy designed to cover loan repayments.While they are in theory completely legimate forms of protection, millions of policies were sold by banks knowing that customers did not qualify for payouts under any circumstances.
Lloyds Banking Group has said it would set aside £3.2bn to repay money wrongfully charged to its PPI customers.
The BBC understands that the banks meeting, including HSBC, RBS and Barclays, are disappointed with Lloyds' decision to break ranks and not appeal. None of the major other banks have agreed to make any refunds in this area.The banks must agree their course before Tuesday, which is the deadline for any legal appeals.
The final figure for PPI compensation could reach up to £6.5bn with Barclays and RBS potentially liable, if they don't......Read more HERE
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Call for accelerated compensation for mis-sold payment protection insurance after major players abandon legal challenge that had stalled claims of millions of customers
The Financial Services Authority instructed high-street banks to accelerate compensation payments for mis-sold payment protection insurance (PPI) after the major players abandoned a legal challenge that had stalled claims of millions of customers.
With PPI poised to become one of the UK's biggest mis-selling scandals, the City regulator told the banks to "get on" with handling complaints after their decision not to pursue court action against FSA rules that were imposed on past..........Read more HERE