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!