With PPI poised to become one of the UK's biggest mis-selling scandals, the City regulator 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. "Today signals the end of years of poor PPI complaint handling and will trigger a dramatic improvement in the way customers are treated when making complaints," the FSA said as Barclays, HSBC and Royal Bank of Scotland backed away from the legal case orchestrated by the British Bankers' Association. The industry has already been put on notice by the FSA that it faces fines and enforcement action if customer complaints are not handled quickly after the Financial Ombudsman Service, which deals with complaints thrown out by banks, started to receive 5,000 a week. The bailed-out RBS was the last of the three banks to admit it would take a £850m provision after Barclays began a day of capitulations saying it would set aside a £1bn to cover its estimated bill.