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Archive for tag: PPI and the Banks Scotland

How Much is the PPI Scandal REALLY Costing the Banks?

The scandal surrounding payment protection insurance (PPI) and the mis-selling surrounding the product doesn't seem to be going away any time soon. But, with the banks' PPI compensation bill continuing to rise, will there ever be any end to the scandal?

The bill so far…

The scandal erupted many years ago but compensation did not start to run freely back in the direction of the customer until 2012. And even then, the amount being awarded and what the customer was entitled to was not always the same figure. Invariably, the banks were still short-changing their customer.

But as we enter the 5th month of 2015, the combined total of PPI compensation monies that banks and lender in the UK has set aside now stands at a whopping £24.4billion. This figure supplied by the respected consumer organisation 'Which?', proves how big this mis-selling scandal is.

The breakdown of PPI compensation, bank by bank

There is no bank nor lender that has not been affected by the mis-selling of PPI; it was common and widespread practice that continued for many years. As an expensive product too, it cost the consumer a lot each month but, for the banks, it made them massive profits.

Some smaller banks, lenders and financial institutions did not sell it on such a huge scale or for as long and so they have, by this point, compensated all their customers - or so they say.

The larger, more well-known banks, however, are still in the process of compensating thousands of their customers, hence they keep adding more and more money to their compensation pots:

  • Barclayshas increased its provision by £200m in the final three months of 2014, taking its total to £1.1 billion
  • Santander, the bank that advertises it will pay you to have a current account with them, set aside an additional £30 million
  • Lloyds Banking Group, partly owned by the British tax payer, added another £700 million to their pot in the final 3 months of 2014, taking their compensation 'fund' to a staggering £2.2 billion, double that of Barclays
  • RBS, a bank that is owned in the majority by the tax payer, increased their provision by £400 million bring the 2014 total that they added to their pot to an addition £650 million overall
  • HSBC, another bank hit hard by the PPI mis-selling scandal added another £278 million, making their total for 2014 to be £624 million

These figures and their own are enough to make anyone question the sheer size of the problem, but when you consider that these figures are in addition to the billions of pounds that the banks have already set aside.

Have YOU claimed?

If not, then now is the time to act. Why not let Payment Protection Scotland help you?