Barclays Bank has announced this week that it will be setting aside another one billion pounds in anticipation of receiving complaints in regards to the mis-selling of financial products, with £600 million of this allocated for payment protection insurance complaints. These additional funds bring the total amount set aside by Barclays in respect of PPI Claims to £2.6 billion.
It was announced yesterday that Barclays are to set aside another £600 million pounds in anticipation of a busy year processing yet more PPI complaints. The entire scandal has already cost the banks far more than they originally forecast, and this latest provision by Barclays is not expected to be the last. Such has been the volume of claims submitted by consumers who were mis-sold payment protection insurance that the Banks have asked the BBA (British Banking Association) to hold talks with the FSA in regards to imposing a deadline for claims to bring the saga to a close.
When the Banks lost the judicial review in regards to the mis-selling of PPI back in early 2011, it was expected that approximately £4-6 billion would be needed to cover the compensation bill. Nearly two years on, the amount of money repaid to mis-sold PPI victims has already trebled from those original amounts put aside and some observers such as Martyn Lewis (of Money Saving Expert .com) have gone on record to state that they believe only 20-25% of possible claims have so far been submitted.
A spokesperson for Barclays has confirmed that of the £2.6 billion that they have set aside in respect of PPI claims, £1.6 billion has already been used and the remaining £1 billion is expected to cover all future claims, based on the claims experience to date. It is also expected that many of the other major banks will shortly follow suit and increase their provisions for mis-sold PPI. Already, Lloyds TSB has set aside over £5 billion, RBS nearly £2 billion and HSBC nearly £1.5 billion.
If you are in any doubt whatsoever about whether you have a valid claim for a PPI refund then contact UK Money Solutions on 08000 748 059. We are now carrying out FREE checks on behalf of our customers who have taken out agreements with Barclays, HSBC, RBS, Natwest, First Plus, Monument, Vanquis and MBNA. We will be able to obtain details of potential PPI claims and we can also help you obtain the account numbers if you don't have them anymore. Contact us via our online form at the bottom of this page.