'No-quibble' payout for mis-sold insurance

Barclays has announced plans to compensate tens of thousands of customers who were mis-sold payment protection insurance on a no-quibbles basis.

The group, which has set aside 1 billion to cover its redress programme, said anyone who complained on or before 20 April would have their claim settled in full as a "gesture of goodwill".

But others may have to wait for longer before they find out if they will receive any money back, after the City watchdog announced an extension to the timeframe in which banks must deal with PPI complaints.

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The Financial Services Authority (FSA) said it had given Lloyds Banking Group, Royal Bank of Scotland and Barclays more time to deal with complaints on the issue due to the huge backlog and high volume of new complaints the groups face.

Instead of having to deal with the complaints within eight weeks, the banks will have until 31 August to resolve mis-selling claims that were put on hold during the judicial review.

They will also have 16 weeks in which to handle complaints received after the judicial review but before the end of August, and 12 weeks to process ones received between the end of August and the end of the year.

The FSA said this was to ensure complaints were handled properly, but taxpayer-backed Lloyds Banking Group and RBS are likely to come under pressure to follow Barclays' lead.