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Barclays sets aside a further £1bn to cover misselling claims

Barclays-Building-2012-480

Barclays has set aside an extra £1bn to cover any redress due to customers who were missold financial products.

Of the £1bn, £400m has been set aside to cover the cost of misselling interest-rate swaps to small and medium-sized business, bringing its total provision for misselling claims around these products to £850m. The bank says it had used £36m of the £850m to settle claims as at 31 December.

The bank has also set aside a further £600m for payment protection insurance redress, as a result of “a higher than anticipated response rate to proactive mailings in Q4”. In total, Barclays has set aside £2.6bn to settle misselling claims relating to PPI products, of which £1.6bn had been paid to customers at the end of 2012.

The extra £1bn means Barclays has now earmarked just over £3.4bn to cover the costs of missold financial products.

The bank will publish its full-year results later this month.

Master Adviser senior partner Roy McLoughlin says: “It is positive that more consumers will get their money back.”

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