Major British banks have become divided on whether the implementation of a deadline for new payment protection insurance (PPI) claims is a good idea, it has emerged.
According to Sky News, at least one of the country's biggest high street financiers is unsure about the prospective introduction of such a timeframe and is therefore likely to pressure the British Bankers' Association (BBA) to drop its proposal in the near future.
Over the last few months, the BBA has held extensive talks with the Financial Services Authority about the possibility of setting a date by which all compensation claims relating to the alleged mis-selling of PPI are lodged.
The lobbying group believes doing so would help banks in their efforts to plan ahead with regard to their budgets and balance sheets and a possible deadline of summer 2014 has been mooted.
However, the news source indicated there is growing opposition to this plan among the lenders themselves due to the fact many consumer lobbying bodies have expressed their dissatisfaction with the proposal.
By Claire Archer