Late last week we learned that the major British High Street banks were meeting to further discuss imposing a deadline for consumers across the UK to claim compensation for PPI that was mis-sold to them by their banks and others.
Sky News reported that
"Britain's banks will on (last) Thursday hold crunch talks about a campaign to secure a deadline aimed at bringing the curtain down on one of the industry's worst ever mis-selling scandals.
I understand that executives from the major high street lenders have scheduled talks for Thursday about whether to press ahead with a "time-barring exercise" that would bring an eventual end to millions of compensation claims for mis-selling payment protection insurance (PPI) policies.
The discussions, which are being co-ordinated by the British Bankers' Association - the industry lobbying group - will be held against a backdrop of opposition from leading consumer affairs groups.
Sky News revealed last month that a number of the big banks had serious misgivings about the initiative, which would involve a huge advertising campaign to raise awareness of PPI mis-selling being launched sometime next year. A deadline for claims several months later would be designed to provide certainty about the final bill for the banking industry, which has reached more than £15bn and is set to rise further.
Key to the decision about whether to press ahead with the campaign will be the stance of Lloyds Banking Group, which had by far the biggest share of PPI policy sales, and which has so far set aside £6.7bn for compensation claims.
Industry sources said that Lloyds executives were sceptical about the merits of the initiative unless it had the backing of consumer groups. HSBC's support is also said to be wavering, although Barclays is understood to be enthusiastic about the idea."
For more on this story visit the Sky News website.
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