Banks have abandoned hopes of a deadline for PPI claims after another snub from the City regulator


Britain's biggest banks have abandoned talks for a second time that were aimed at fixing a cut-off for claims in the £20bn payment protection insurance (PPI) mis-selling scandal. Sky News understands that the major high street lenders have walked away from renewed discussions with the Financial Conduct Authority (FCA) after the City watchdog signalled that it was lukewarm about such an agreement.

A source close to Lloyds Banking Group, which has set aside almost £10bn to cover the cost of PPI mis-selling, said on Thursday that there were now no ongoing talks about a time-barring exercise. The development means that banks will almost certainly face historic PPI-related claims lasting for several more years. Lloyds said last week that the current pace of claims meant that it anticipated receiving a further 550,000 claims from customers. In total, the big four banks have set aside almost £20bn, with Royal Bank of Scotland recently increasing its charge by £465m....Read more here