Ex-Lloyds bosses defend PPI sales and shift blame to FSA

She said: ‘Was there mis-selling? Absolutely and whenever we found an example… we undertook a rectification exercise. It wasn’t always a misunderstanding. There were different types of mis-sellings but a large part was misunderstanding.’  

‘We should have done better.’

When asked by Phillips if Sergeant accepted any responsibility for the mis-selling of PPI, she said: ‘I feel I bear accountability for not taking up with the FSA more clearly at the outset what principle’s based-regulation meant in the conduct area.

‘I made the wrong assumption, because it worked in other parts of the forest that we would know how it would work and as time goes on by continuing to address the various issues that were coming out of thematic reports I thought that this [mis-selling problem] could be mended.’