Banks wave white flag to PPI appeal

The British Bankers' Association's decision to not contest the ruling on the mis-selling of Payment Protection Insurance (PPI) is a victory for consumers, says uSwitch.com, the independent price comparison and switching service.

Stefan Maryniak, personal finance expert at uSwitch.com, says: "Following Barclays' move to join Lloyds in withdrawing from the appeal process, it was only a matter of time before the banking industry as a whole backed down and admitted defeat.

"By retreating from the battle, the banks have admitted they were wrong in this mis-selling scandal. They are now going to have to suffer the consequences of their actions, with compensation costs rising to the billions.

"There is still a huge amount of trust to be rebuilt between banks and consumers, so even though today's move is a step in the right direction, it could be too little too late. With all compensation cases now being looked at, we finally have a victory for consumers and common sense."