It looks like another big hitting bank is set to withdraw from the British Bankers' Association's fight to get the new FSA rules on PPI sales overturned in the courts.
According to the Telegraph Barclays may announce as early as tomorrow that it is no longer prepared to continue with the legal battle over payment protection insurance (PPI).
Antonio Horta-Osorio, the new chief executive of Lloyds, had already set the bar last week by announcing that the group would no longer be joining the BBA's fight. This further decision of this sort by Barclays would leave just the Royal Bank of Scotland and HSBC backing the BBA in its legal wranglings.
The BBA has been the vanguard of the legal action against the FSA on the basis that the FSA and FOS rules applied retrospectively setting a dangerous precedent. The loss of both Lloyds and Barclays from their ranks will leave the BBA with a much weakened case. And pressure will also be brought to bear on the remaining pair to withdraw, with RBS looking like it will according to the Telegraph report.
HSBC though seems to be another matter. They stopped selling PPI in 2007 so believe that retrospective action would be inappropriate and possibly damage their future business.
Barclays has not yet put a figure on this move, which has been sanctioned by their chief executive, Bob Diamond. But looking at the Â£3.2 billion that Lloyds has put aside compared to their PPI market share of 30%-40%, Barclays with its 15% PPI market share would probably need to make a provision of about Â£1.5 billion.
All the banks dealings over the PPI issue stinks, so they should just accept that they got found out and pay up whatever is required to put this whole sorry business behind them. Then we should watch them like hawks to scotch their next move to fleece their customers.
If you had a loan with PPI in the recent past then you should seriously consider claiming, or at least looking into it!