Payment Protection Scotland - PPI Blog

At the start of the year, banks were telling us that they thought this last round of PPI fund top-ups would be the last. They implied that there were not many more compensation claims for mis-sold payment protection insurance (PPI) to come.

And yet, as this year draws to a close it seems that this is not the case, with Barclays announcing in late October 2016 that they were adding another £600 million to the PPI fund. This brings their total PPI provision to £8.4 billion.

But why the increase?

Some financial experts suggest that the PPI deadline of June 2019 announced by the regulator, the Financial Conduct Authority (FCA), has something to do with it.

This is not the first time the idea of a compensation deadline has been muted but it is not the date that the banks were expecting.

They assumed that the FCA would opt for a two-year deadline. By opting for June 2019, the banks have just under another three years left to process claims and compensate customers.

There is no doubt the banks were hoping for the PPI problem to go away much faster.

Profits

Some say that the outpouring of compensation is hitting profits hard but it doesn't appear to be that way for this bank. Barclays is reporting a 35% rise in third-quarter profits, boosted by its investment banking business.

By the end of September, pre-tax profits stood at £837 million, a profit margin that is not too shabby at all. Overall, Barclays profits are up 40% compared to the same time last year. Investment banks in general have been posting strong profits, and Barclays is no exception.

What does this mean to YOU?

What it means is simple - Barclays now that there are a many more PPI compensation claims yet to be made against it. In effect, it along with all other UK banks and lenders, are bracing themselves for an influx of PPI compensation claims in the coming years.

What this means is that if you have a claim for PPI compensation against Barclays bank, you need to get your claim to them as soon as possible.

Most cases are resolved quickly which could mean a bumper Christmas this year, with your PPI compensation in the bank!

Payment Protection Scotland can help you make a claim against Barclays and any other lender in the UK who mis-sold you compensation. Call us to find out more right now!

There can no one in the UK who is NOT aware of the mis-selling of payment protection insurance (PPI)!

Despite it being a policy that was sold to people to allegedly help them in their hour of financial need should the unthinkable happen, it was not the insurance they thought it would be…

• It was very expensive for the cover it offered
• The cover was limited but customers were not told this when they were sold the policy
• Frequently, the term of the insurance policy did not cover the length of the loan
• It was an insurance that paid out in only 15% of claims made against it

Was every bank involved?

More or less, and one bank that the compensation pay-outs have hit hard is the Barclays' group. In late October 2014, the bank announced that it was to set aside an extra £170 million to cover more compensation claims for mis-sold PPI.

This additional money now means that its overall provision for mis-sold PPI stands at a staggering £5.02 billion. Only a few months previous, in July 2014, the bank announced it was adding another £900 million to the pot.

Thus far, figures it released recently was that it had already paid £291 million in compensation during the 3 month period from July to September along, as well as estimating that it still has £1.2 billion worth of claims left to be paid.

And, like other banks in the UK, it is facing another dispute and has set aside £500 million in the wake of allegation that it was part of rigging the foreign exchange markets.

Are you a customers of Barclays?

If you are, then you really need to check whether PPI had been added to your accounts or not; the bank themselves, along with other major lenders in the UK, have already given indications that they know they still owe billions in PPI compensation.

Since January 2011, the Financial Conduct Authority statistics show that £16.3 billion has been paid out in PPI compensation, with a large amount every quarter still being paid to customers.

But, despite these astronomical figures, Barclays, like many other banks in the UK, are still posting profits, with a 4% in their pre-tax profits to £1.2 billion in the third quarter of 2014.

Have you claimed your slice of this compensation? If not, act now by calling Payment Protection Scotland to see how we can help you get back every single penny of your money…