The Confederation of British Industry wants a legal time limit for consumers to bring claims about payment protection insurance misselling and wants to see banks protected from legal challenges about products linked to Libor.
Writing in today’s Times, CBI director general John Cridland (pictured) argues banks, which have already set aside £11bn in PPI redress, are “hamstrung enough without the continued millstone” of PPI around their necks.
Cridland says: “I firmly believe we now need to draw a line under PPI and I am urging the Government to consider the introduction of a statute of limitations for all PPI claims, capping the time during which legal proceedings can be initiated.
“Such a move could be reinforced by the FSA declaring that the point at which consumer awareness of PPI misselling is widely known has now legally been reached.”
Cridland also expressed concern about the recent High Court ruling in the Guardian Care Homes case, which was given the go ahead last month. Guardian is suing Barclays for up to £38m in damages and is looking to cancel interest rate swaps sold by the bank following its admission it attempted to manipulate Libor.
He says: “Banks must be held accountable for manipulation of Libor and the Wheatley Review has set out a comprehensive and compelling case for reform.
“But hindsight is a wonderful thing. It would be a dangerous precedent if banks were to be held responsible for products sold that related to Libor. Government needs to be prepared to step in to head off judge-led law if necessary.”