PPI Claim News - 31/7/2012
PPI claims provision 'reaches £10bn'
The amount of money banks have set aside to refund payment protection insurance (PPI) has hit £10 billion.
Which? has pointed out that as HSBC has increased its PPI claims fund by a further £340 million, the total amount of PPI compensation money earmarked by the five largest banks - which also includes Lloyds, RBS, Santander and Barclays Bank - has now reached £8.8 billion, with the remaining £1.2 billion coming from smaller lenders and the Financial Services Compensation Scheme.
RBS is forecast to increase its PPI claims fund when it reports its results on Friday, the consumer advocacy body added.
As of May 31st 2012, banks had refunded £4.8 billion of this cash, leaving more than £5 billion of missold PPI available for members of the public affected by this issue.
"These latest figures from the banks show that PPI is now on course to become the biggest consumer financial scandal of all time, exceeding pensions mis-selling and the endowment mortgage scandal," the organisation's chief executive Peter Vicary-Smith remarked.
John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.
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