Professional Financial Claims Association’s Nick Baxter estimated last year that banks may have to pay more than £10-15 billion for payment protection insurance claims following the announcement of a possible PPI deadline. Regulator estimates have been lowered to only £10 billion or even less until the PPI claims deadline in 2018.
The UK’s biggest financial scandal ends in 2018 as the Financial Conduct Authority is to finish its deadline consultation by February’s end. The City Watchdog has confirmed a £42.2 million advertising campaign backed by banks to urge consumers into making a claim as soon as possible.
Lloyds, the UK’s biggest PPI mis-seller, is to set aside £2.5 billion for its misgivings. Lloyds takes half of the current £27 billion total with £16 billion paid for PPI.
Meanwhile, RBS and Santander UK each have announced £500m in provisions for payment protection insurance. For its other troubles with international regulators, RBS will set aside more than £3.2 billion to settle its civil case regarding its toxic mortgage scandal in the United States before the 2008 financial crisis.
RBS Chief Executive Ross McEwan said in January that the bank has enough to provide for claims through the proposed deadline date of Q1 2018.