The BBA continues to back the way banks sold PPI, despite the recent uproar over its extensive mis-selling.
The British Bankers Association is continuing to defend the way banks sold payment protection insurance, regardless of the recent pandemonium over the extensive misselling of the product.
This week the BBA Executive Director, Eric Leenders, spoke at a Which? conference on financial services reform. He outlined the reason why the trade body launched its judicial review into PPI redress measures in the first place – a case which it lost in April.
Leenders noted: “This is a classic area where we felt we had complied entirely with what was required. That is not just based on our internal risk, compliance and legal assessments, but the external advice we received as well.
“Those risk and compliance departments have been involved in conversations with the regulator since 2001 to make sure the paperwork and documentation was correct. To then say 10 years down the track ‘this is how it should have been done and you should have known’ puts the industry in a very invidious position.”
In contrast, Clare Spottiswoode – member of the Independent Commission on Banking and former Ofgas Director General – had an opposing view: “It is absolutely outrageous in my view that the banking industry can defend introducing the PPI product on the basis they did all the paperwork and complied with all the regulations.”
As it stands, considerable fines have already been levied on banks as consequential action taken by the FSA for the misselling of PPI.