9th May 2011
As reported in The Guardian the FSA's announcement follows a decision by the British Bankers' Association to drop a legal challenge against compensating customers for mis-sold payment protection insurance (PPI) .
The Guardian reported that the City regulator had told the banks to "get on" with handling complaints after their decision not to pursue court action against FSA rules that were imposed on past sales.
RBS was reported on ft.com as conceding the cost of years of mis-selling loan insurance, revealing an £850m provision as part of the UK's second-largest customer compensation settlement.
RBS described the industry-wide U-turn as "an important step for all UK banks in our efforts to restore the confidence and trust of consumers".
If this u-turn wasn't surprising enough, Lloyds announced it had set aside a massive £3.2bn to pay back to customers mis-sold the insurance. Meanwhile Barclays, which sold less PPI policies than Lloyds, ring-fenced £1bn to cover its PPI bill.