Anyone mis-sold PPI insurance loan insurance will have to file compensation claims by 2018, set out in new plans attempting ‘draw a line’ under one of British banks’ most expensive scandals.

A consultation paper published on Thursday by the banking watchdog set out new rules on so-called payment protection insurance (PPI) complaints, and said a new campaign to inform consumers about the time limit would be funded by banks who mis-sold the insurance.

The scandal, whereby banks tricked customers into buying PPI insurance with an average commission of 67 percent, has led to British banks setting aside £28 billion in compensation. Lloyds bank was deemed the biggest perpetrator.

The banking watchdog published a consultation paper on the subject on Thursday, with a new campaign warning customers about the time limit being funded by the banks and is likely to cost around £42.2 million.

Barclays fined £72 million for failing to conduct adequate client checks

It seems that today has been a bad day for banks all round, as Barclays bank prepares to pay a fine of £72 million for failing to conduct proper checks on its richest clients.

The City regulator said Barclays made a £1.88 billion deal with their wealthiest clients in 2011 and 2012, because they were worried about inconveniencing them.

The regulator concluded that Barclays did not conduct the proper checks on clients who should have been considered politically high risk.

26/11/2015