The bill for mis-sold Payment Protection Insurance (PPI) has moved above the £10bn mark for Lloyds Banking Group.
In the first half of 2014, the tax-payer backed lender made an extra £600 million worth of provisions, taking the total amount the bank has set aside to £10.4bn.
As Britain’s largest lenders set aside billions of pounds for Payment Protection Insurance (PPI) mis-selling compensation, HSBC is set to become the latest bank to set aside additional funds to cover potential future compensation payments.
The mis-selling of Payment Protection Insurance has been confirmed as the financial sectors worst ever scandal and has seen the total compensation bill rise above £23bn after four banks set aside a further £1.7bn.
The cost of the Payment Protection Insurance (PPI) scandal has escalated again for Barclays as they have reported another £900 million provision to cover the costs of compensating customers who were mis-sold the insurance product.
During 2013 and 2014, the Financial Services Compensation Scheme (FSCS) have reported fewer Payment Protection Insurance (PPI) claims than the previous year.
This suggested that PPI claims coming to the FSCS had peaked, with about 12,000 in the 2013/14 period compared to around 19,000 the year prior.
Following the industry wide slowdown in Payment Protection Insurance (PPI), Barclays have seen a drop in customer complaints in the first quarter. However, its clients have ramped up their grievances against the bank’s mortgage and general banking services.
Barclays reported a drop in complaints from 210,000 to 145,500 in the first quarter of this year, compared to the same period a year before, mainly because there are less customers claiming against the mis-selling of PPI.