Banks lose out in PPI battle

Tim Wallace
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BANKS’ bid to implement a new cut-off deadline for the wave of payment protection insurance (PPI) compensation claims faltered.

The British Bankers’ Association had been in negotiations with the Financial Conduct Authority over a cut-off, but the revelation that some compensation claims by Lloyds customers had been wrongly turned down has ended the discussions.

The failure came as the chairmen of Britain’s biggest banks prepared to get together to respond to the Parliamentary Commission on Banking Standards’ (PCBS) report in the coming days. MPs and peers have held a lengthy inquiry into behaviour at banks after the Libor manipulation scandal erupted last year. Barclays, RBS, HSBC, Lloyds and Santander are all thought to be prepared for talks.