Reports from five of the UK’s biggest banks continue to rock the mis sold PPI boat. The total compensation, now about to reach £26 billion, will spell a disaster for the FCA’s upcoming review of bank PPI handling for considering a claims deadline.
According to analysts, PPI claims have not decreased in number for this year. Now, Santander, HSBC, Lloyds Banking Group and RBS will have to provide additional recompense amounts.
Santander had increased its £95 million compensation pot to £846 million. Lloyds, HSBC and RBS are to announce their addition to their compensation pot by the end of the month.
Meanwhile, Barclays would also be announcing its new PPI earmark by March.
In total, the five biggest UK banks have set aside more than £24 billion to provide compensation to victims of PPI mis selling.
Lloyds takes the biggest compensation amount with £13 billion spent on PPI recompense.
Analysts see that this might cut short the Financial Conduct Authority’s possible consideration for a PPI claims deadline, news that had the financial industry dancing. With the increasing numbers of complaints, banks will need to hold out and recompense all possible valid PPI complaints. They said it could mean that PPI could drag on for as long as 2018.
Previously, the British Bankers Association had encouraged the Financial Conduct Authority to consider providing a PPI claims deadline wherein they will provide a 12-month advertising to encourage people with PPI to come forward and claim compensation.