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Banks unable to strike PPI agreement

The payment protection insurance (PPI) mis-selling saga looks set to rumble on for a long time, after banks and consumer organisations failed to agree on a set deadline for making claims.

According to the Daily Telegraph, the British Bankers' Association had been leading discussions between the two groups, but sources have suggested that negotiations have ultimately proven to be fruitless

Leading lenders wanted to set a concrete deadline for people who wish to launch a PPI claim so that a line could be drawn under the matter as quickly as possible.

In exchange for this, consumer groups demanded that banks funded a massive nationwide advertising campaign to raise awareness about PPI mis-selling. However, the situation has not been resolved and financial companies seem destined to face more PPI complaints in the coming years.

A source close to the talks told the news provider: "The whole thing is being wound down as it has become clear there is no way we are going to get an agreement."

Earlier this year, the Financial Ombudsman Service said it was gearing itself up to deal with an "unprecedented" number of PPI complaints in 2013.

By Asim Shah