British Bankers’ Association chief executive Angela Knight has come under fire and faces calls to resign after the trade body announced it was dropping its judicial review into payment protection insurance complaint measures.
BBA members have told The Telegraph that Knight (pictured) should stand down over the way the judicial review was handled.
One executive at a BBA member said: “The BBA’s handling of the PPI case has made us uncomfortable.
“Angela has been great for the industry, but I think we need someone less stringent now.”
Another member said: “She has done a great job but it is time for a different voice.”
In response, a BBA spokesperson told the newspaper: “PPI has been a member issue throughout on which we have been in close and constant contact at the highest level.
“There is absolutely no basis for your suggestion the handling has been questioned.”
The BBA launched its legal action in October challenging PPI redress measures set out by the FSA in August.
The trade body argued the FSA was applying rules retrospectively and also challenged guidance published by the FOS on its website.
The case was heard in January, and the High Court ruled in April in favour of the FSA and the FOS.
The trade body had until May 10 to appeal, but decided not to after Lloyds Banking Group announced a £3.2bn provision for PPI redress and said it would not be supporting further legal action.
Barclays has announced a £1bn PPI provision, RBS announced an £850m provision this morning, and HSBC has set aside £269m.