The Parliamentary Commission on Banking Standards has requested those responsible for mis-handling PPI sales initiatives attend a hearing to discuss the matter publicly.
In an exclusive report, Sky News’ Mark Kleinman has reported that the The Parliamentary Commission on Banking Standards (PCBS) has requested that the banking industry put forth names of executives directly responsible for handling payment protection insurance (PPI) sales.
Industry leaders were told to include names of even former executives who were employed throughout the development of PPI sales practices.
These executives and others are expected to be called forth later this month to answer questions on PPI selling practices, which have been deemed overly aggressive and unnecessary by the Financial Services Authority (FSA).
Some bankers have balked at the idea of a public hearing with the PCBS, citing worries that the trial would become a sensationalised media circus. However it is expected most banks will comply and acknowledge the need for public accountability.
While these hearings are certain to be somber affairs, there is a silver lining in the PPI cloud. The UK economy is set to have a £6 billion boost in 2013 alone – with the Financial Ombudsman Service (FSO) calling for more case workers to process claims. This increase in case workers will mean more jobs, and quicker pay-out times for customers looking to reclaim PPI costs.