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.
Payment Protection Insurance (PPI) News
Barclays PPI Complaints: 1,500 Per Day and Rising
Years after the controversial financial instruments have ceased being issued, PPI complaints are still flooding into the Financial Ombudsman Service each and every day, and current and former Barclays customers are leading the charge. In fact, the latest report states that the large financial institution receives more than 1,500 complaints every single day.
PPI Claims – Leicester, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks in Leicester. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
Interest Rate Swaps: RBS exposed to new swap mis-selling
Investec reports that RBS is likely to be the next bank exposed to interest rate swap claims from mis-selling and should be putting extra provisions aside for likely calls for swap compesation.
After the FCA set up the interest rate swap rate redress scheme with the banking sector, only 10 claims have been compensated so date.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
Latest posts by Tim Capper (see all)
- PPI Claims Currently Show No Sign of Slowing Down - December 10, 2014
- Swaps (IRHP) Determining the Level of Redress - November 3, 2014
- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014