View more on these topics

Banks’ bill for missold PPI hits over £20bn

High street banks have set aside a further £1.5bn to compensate customers missold payment protection insurance, taking their total PPI redress bill to over £20bn.

According to Sky News, Barclays, Lloyds Banking Group and Royal Bank of Scotland will announce their extra PPI provisions in their half-year results next week.

To date, Lloyds, Barclays and RBS have set aside a total of £16.85bn to cover missold PPI. HSBC has also set aside £2.1bn. Including the latest £1.5bn,the total cost of redress for missold PPI among the biggest four lenders is £20.45bn.

The extra redress from the three banks has beeen triggered more PPI claims relating to policies sold before 2005. The British Bankers’ Association is holding talks with the FCA over introducing a deadline for consumers to bring PPI complaints.

Yesterday, figures from the Financial Ombudsmen Service revealed PPI complaints fell 57 per cent over the past year, from 132,152 to 56,869. The proportion of complaints upheld also fell from 78 per cent to 61 per cent.

In June, a BBC investigation found that Lloyds Banking Group, Barclays, MBNA and Capital One may have underpaid compensation over PPI misselling to the tune of £1bn.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. A veritable feeding frenzy for the CMC’s, though if they [the banks] failed properly to establish suitability and keep proper records, it’s easy to see why. The crazy thing is that many people are being compensated for having been mis-sold policies not just that WERE actually suitable, but on which they’ve even claimed successfully. Is this good regulation? How can it possibly be good regulation? Why is the regulator being allowed to get away with having FAILED to identify and put a stop to what was obviously a mushrooming problem that became an epidemic? The reason, of course, is that no independent body exists to hold it properly account for anything, so the regulator gets away with everything.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm