Clydesdale Bank has apologised for delaying PPI complaints for four months because of new FCA regulations regarding handling mis sold PPI claims and for re-examining a great number of new and previously-rejected claims.
Under the new FCA regulations, the bank is advised to look into claims spanning more than six to eight years in their financial files.
To tackle the hundreds of thousands of new and old complaints, Clydesdale said it was recruiting and training new staff to run on a 24-hour shift system. It has included in its latest £400 million provision staffing costs. The provision will also deal with higher amounts of claims estimated from looking into financial histories involving the mis selling of PPI as much as 10 years past.
The National Australian Bank, which owns Clydesdale, said that it has doubled its provisions for Clydesdale and Yorkshire up to £811 million.
Meanwhile, Beat The Banks Leader Mike Begg said that the bank is in “absolute shambles” after phoning them regarding updates about complaints.
Payment Protection Partnership Director Richard Caplan said “Where we are seeing banks making payments the majority of it is for reviewed cases.”
“You have to give them credit that they have told us they are now going to do it.”