Banks Add More Money to PPI Compensation Pots

Happening on a regular basis, the topping up of PPI compensation pots by banks no longer makes the headlines like it once did.

But once again, as the new year of 2016 rolled in, major banks and lenders lined up to add more millions into their compensation pots. With the city regulator, the Financial Conduct Authority (FCA), proposing a two-year deadline – but yet to be officially announced – banks and lenders are announcing substantial additions to their compensation pots.

So far, the mis-selling of PPI has cost a total of £30 billion. And this figure looks set to rise before the saga ends.

Barclays, HSBC, Lloyds banking Groups, Royal Bank of Scotland and Santander UK have all announced, albeit quietly, that they have added or will add more money to their PPI compensation funds. This could be a combined total of £5 billion. On top of the £27 billion that has already been paid out to customers and a further £3 billion pending payments.

Exact numbers and figures have yet to be finalises and thus, the eventual figure could be higher than £5 billion.

Lloyds Banking Group, for example, as the biggest of the high street banks has, predictably, the biggest of the PPI compensation pots. They have indicated they intend to set aside a further £2.5 billion. This could bring their final bill to around £16 billion.

Who do you bank with?

The fact that the banks and lenders are adding yet more money to their PPI compensation pots suggests that the PPI scandal is not going anywhere just yet. It also sends a clear message to the financial markets and to their customers that there are more claims yet to be made – and that the bank predicts that they will be successful claims with customers being reimbursed.

With a glut of claims also in the system at the Financial Ombudsman too, the customer is determined to claim their money back. The Financial Ombudsman has said that they are now dealing with more complex claims relating to mis-sold PPI than in previous years.

Thus no matter who you bank with, who had a loan or credit card with etc., the likelihood is that if you have been mis-sold PPI and have yet to claim, the chances of claiming your money back are high. With this in mind, we suggest you contact us today to find out more about claiming back your money.

Check your paperwork today and make your claim for PPI compensation with Payment Protection Scotland.

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