Barclays this morning confirmed it will not appeal against the recent High Court ruling on Payment Protection Insurance (PPI).
The bank will now begin to process all on-hold and any new complaints about PPI policies from customers, after reaching an agreement with the FSA.
Barclays is taking a provision of £1bn in the second quarter 2011, to cover "the cost of future redress and administration".
In a statement, Barclays said it has decided not to participate in any application for permission to appeal against the High Court judgment of 20 April 2011, which dismissed the action brought by the British Bankers’ Association regarding the assessment and redress of PPI complaints.
Bob Diamond, chief executive of Barclays said: “We have taken this decision because it is in the best interests of our customers, as well as for Barclays and its shareholders; creating certainty, particularly regarding past issues, is of benefit to all parties.
“We don’t always get things right for our customers; when we get them wrong, we apologise and put them right. That’s our commitment to our customers, and it applies to the way in which we will deal with PPI complaints.”
Barclays has followed Lloyds in dropping the PPI legal fight. For more, read: What Lloyds' PPI settlement means for brokers.
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