Payment Protection Insurance Could Be Higher Than £22 Billion

October 28, 2014
by admin in PPI News

In the next few days, the UK PPI compensation package could reach beyond £22 billion, further cementing it as the most expensive financial scandal in history.

According to Sky News, Barclays, Lloyds, HSBC, And Royal Bank of Scotland will use their quarterly results to justify topping up payment protection insurance compensation provisions in the United Kingdom.

Their sources said that these banks would put their respective PPI refund bills to more than £1 billion.

Lloyds, the biggest mis seller of PPI, will be the first to report their third-quarter results on Tuesday. They also have the biggest PPI refund share with £10 billion, half of the entire bill. Barclays will set aside £4.85 billion, RBS with £3.2 billion and HSBC with £2.1 billion.

The Financial Ombudsman Services said that a substantial fall in new complaints does exist, but Chief Ombudsman Tony Boorman iterated that they were still “depressingly high.” PPI complaints were still at 57,000, half of the 132,000 in the third quarter of 2013.

The British Banking Association (BBA) is discussing with the Financial Conduct Authority (FCA) regarding a cut-off point to PPI claiming. However, FCA Chief Executive Martin Wheatley said that he was sceptical about the prospects of a time-barring exercise.