Britain’s big banks have abandoned a controversial appeal over Payment Protection Insurance regulation. This has opened the way for billions of pounds in compensation for those who have been mis-sold policies.
The British Bankers Association (BBA) said the legal action over the scandal which saw thousands of persons sold policies they did not need was being dropped. This was following both Lloyds and Barclays decision to pull out of the action. Barclays confirming today that it will not be part of the appeal. The bank stated that it will put aside £1bn to cover PPI mis-selling claims. HSBC, following suit, announced it will provide £267 million. Royal Bank of Scotland has become the last of the U.K.’s major banks to announce its provision against PPI mis-selling claims, saying it will set aside £850 million, Lloyds having already pledged £3,2bn.