FSA chief executive Hector Sants says the scandal over the misselling of payment protection insurance was a missed opportunity for banks in restoring customer trust.
Speaking at the British Bankers’ Association international banking conference in London today Sants said £15bn paid out to customers over the past 20 years was an unacceptable cost.
He said: “A restoration of trust requires a visible step-change by you the banks. In my view, PPI was a missed opportunity to demonstrate your intentions. I urge you to take the next one.”
Sants added that the move to the new regulatory structure required change in the attitudes of both banks and regulators.
He said “Unless we all change all aspects of what we do, real change will not be achieved.”
Earlier this week BBA executive director of retail Eric Leenders said banks had “complied entirely” with regulatory rules governing the sale of PPI.
But speaking at today’s conference BBA chairman Marcus Agius said banks need to go further than apologising on PPI, and need to demonstrate they are working hard for consumers and making sure they take out the right product.
Agius said: “PPI was a product where in many instances we got things wrong and we let our customers down. Yes we have apologised and yes we are putting things right.
“While regret and rectification are important virtues when we make mistakes, they are not going to be enough to bring back trust.”