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BBA’s Angela Knight faces calls to resign over PPI

KNIGHT.jpg

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.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Why is it people always want scape goats? Ms Knights actions are nothing when compared with the Directors and Compliance Officers that allowed PPI to be flogged mercilessly with huge commissions. Why haven’t the senior managers and compliance directors at these banks that sold PPI resigned or been disciplined? It does appear again that the small person (or IFA) gets the bullet and the big boys (girls) wriggle out.

  2. As Sam Caunt says, whilst I woulnd’t mind seeing Ms Knight go, I think they’d be hanging the wrong culprit. She was simply trying to defend the indefensible, but it is the Directors and Compliance Officers who have cost their shareholders dearly NOT Ms Knight

  3. “BBA members have told The Telegraph that Knight (pictured) should stand down over the way the judicial review was handled.”

    I’ll bet they wouldn’t be saying that had they won!

    Then they realised that the provision for redress is going to be a lot less than the commissions they made by screwing borrowers.

    (My bank told me they would not lend unless I had it, even when I pointed out that the product was unsuitable as I am self employed and that a monthly premium product would be less expensive.)

    AND, while we’re at it, what about the insurers who egged the banks on with irresponsibly high commission rates? (Aviva please note!)

  4. The banking chiefs were happy to have their staff sell crap at extortionate prices to customers, regardless of need or suitability.

    The FSA has taken 10 years to address a problem that every IFA has known about for 20 years.

    And now the BBA wants to hang-out-to-dry someone who failed to convince the FSA that they hadn’t done any wrong despite overwhelming evidence to the contrary.

    And still the bank chiefs will collect their bonuses, and still the FSA will do all that it can to destroy the existence of independent advice whilst ignoring the next self-evident scandal to come.

    And still Joe Public will pick up the tab as banks manipulate charges, fees and product conditions to recover the compensation bill.

    What benefits has 20 years of ever-increasing regulation brought the UK public ?

  5. Simon Mansell 10th May 2011 at 3:16 pm

    So why allow bancassurers to benefit from RDR?

    For years this banking practice has been a scandal and goes far beyond PPI. It is of course an indictment on the banks but I believe an even greater indictment of the regulators who had/have a banking “blind spot”. When it came to the banks where on earth have the regulators been all these years?

    Many years ago one bank had a habit of suppressing DDI’s, long enough to get their own advisers in to see the clients and poach the business. Even now they still make that unsolicited call two days after a large deposit is made and God help the business man with an overdraft when the banks wants to conditionally sell yet more products.

    The banks want IFA distribution and when discussing the FSA Retail Distribution Review (RDR) head of HBOS Paul Selly said “Bancassurers are set to benefit”. Little wonder then that many IFA’s question why the FSA wants to destroy the independent sector to the benefit of bancassurers? If it’s not broke don’t fix it! The above figures are an embarrassment to a discredited regulator and to Mark Hoban MP who also seems only to have a blind spot.

  6. Exasperated Me 10th May 2011 at 4:41 pm

    I’m not an expensive lawyer but to my mind the case was aimed in the wrong direction, some strange technical arguments without merit were used, assuming should have been embarked upon in the first place of course.

    The banks need to weed out their internal lawyers and make sure they don’t use the same external advisers in future.

    The banks also need to look at their business models without those rose tinted bonus glasses on.

  7. Alistair E Niven 10th May 2011 at 7:12 pm

    Angela Knight should not go. She has done her job, as spoken for the Banks during times, when they have shown themselves to be an unsavoury bunch, with considerable distinction. Whether they deserve such a capable spokesperson is another matter.

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