The somewhat surprising move by Lloyds Banking Group to pull out of the banks’ appeal to overturn the High Court ruling on the mis-selling of Payment Protection Insurance (PPI) is great news for consumers, says uSwitch.com, the independent price comparison and switching service.
Stefan Maryniak, lending expert at uSwitch.com, says: “Today’s announcement is great news. If the banks manage to appeal the decision, consumers’ victory will be short-lived. By retreating from the battle, Lloyds has left the other banks with less firepower to get their own way. It is admitting its part in the mess and has even set aside over £3 billion to pay for its mistakes. This shows that it is taking it on the chin rather than trying to duck the blow. Considering it stands to lose the most from the PPI decision, its announcement today is something of a surprise.
“It’s a smart move by Lloyds, who in admitting defeat will avoid any other costs involved in appealing the decision if the banks are unsuccessful. It could also be a clever tactic to help it re-build its reputation as a more consumer-friendly bank – by attempting to draw a line in the sand Lloyds is looking to re-build trust for the future. This is much needed in the industry, but whether today’s move is too little too late remains to be seen.
“Whatever the reason for the move, consumers should be celebrating as Lloyds’ defection today is a serious blow to the case being presented by the other banks.”
Source : uSwitch Press Release
