LONDON, Jan 16 (Reuters) - Britain’s banking industry and financial regulator are in talks to establish a cut-off date to end the costly stream of claims from the public relating to banks’ mis-selling of payment protection insurance (PPI), the Times reported.
The banks are facing a huge back-log of claims from the biggest mis-selling scandal in British banking history and the bill is likely to far exceed the 12 billion pounds ($19 billion) they have already put aside.
The newspaper cited industry sources as saying that the British Bankers’ Association had suggested a deadline of summer for claims to be made, in return for the banks agreeing to finance an advertising campaign warning people of the new cut-off date.
The Financial Services Authority is sympathetic to the banks’ concerns and a number of possible ways of implementing the deadline were being considered, the paper said.
Lloyds, which employs 6,000 people to process the claims, has already put aside 5.3 billion pounds to deal with the issue, although analysts expect that amount to rise.($1 = 0.6215 British pounds)