Mis-Sold Payment Protection Insurance (PPI) looks set to cost the Big Banks an extra billion pounds this year, bringing the total paid on PPI claims, paid on mis-sold PPI policies to a staggering £8 billion
PPI Claims to Cost Banks an Extra Billion Pounds
For the period from April to June, addittional charges faced by the big banks will be displayed in the half year results from Barclays, Lloyds, RBS and HSBC.
- Lloyds set aside £375m on its PPI provision for the first quater and is expected to report a rise on this amount.
- HSBC is expected to say it set aside £300m in its PPI Claims provision in the first three months.
- RBS is believed to be on the verge of confirming that it will be making a further PPI allocation similar to the £125m in its first quater.
- Barclays is expected to reveal a smaller PPI Claim allocation then its original £300m.
Banks 2nd Quater PPI Provisions
(Updated 26th July)
- Lloyds sets aside £700m for the 2nd quater PPI Claims provisions.
The above figures show how serious and endemic the PPI mis-selling has been throught the banking industry and adds weight to the calls for tighter regulation especially after the LIBOR manipulation scandel and the swap mis-selling investigation launched last week by the FSA. The Large banks have agreed to compensate buinesses who were mis-sold swap loans, which were basically complex hedge funds all in the banks favour rather then the customer.
Anthony Sultan, chairman of the financial services group at the Claims Standards Council, believes it is right that banks pay consumers back what they are entitled to. Sultan said: “We have always felt that the banks have not put sufficient reserves aside to cover the large amount of claims that will be made and are being made in respect to mis-sold PPI products. “There has been a systematic mis-selling of the products as confirmed by the FSA in its own investigations. All we ask for is that those who have been mis-sold to receive the redress they are entitled to.”
Britains Banks have had a tough couple of years, however we at Maple Financial believe that there is no excuse for the blatant mis-selling of financial products, clearly in the banks favour, rather then the consumer.
If you have any queries regarding PPI, SWAPS, or any other Financial Product, we will always provide impartial professional advice.
Post by +Tim Capper