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Banks give up fight against PPI claims
Business digest: Banking industry begins putting aside billions of pounds in compensation payments
British banks have agreed to a hefty compensation scheme after washing their hands of an ongoing battle over the misselling of payment provision insurance (PPI).
The Financial Services Authority recently ruled that PPI policies, which cover loan repayments if the debtor falls ill or has an accident, have been sold to those who would not have been able to claim - mostly self-employed or unemployed people.
After losing a court challenge against the ruling, the British Bankers' Association has said that it will not appeal.
Last week Lloyds announced that it was making a £3.2bn provision for compensation payments, whilst Barclays will set aside £1bn.
Read a full report at BBC News. ·
