Both Lloyds and Barclays have announced that they have set aside an additional £700 million each to cover the cost of mis-selling Payment Protection Insurance (PPI) (including Administration costs).
The total amount set aside by Lloyds stands at £18bn (including Administration costs) with them having increased provisions 17 times so far.
The additional sum brings Barclays’ total bill to £9.1bn (including Administration costs), and according to their interim results for 2017, £7bn has been utilised.
According to Barclays’ Results Announcement they have already received two million customer complaints about PPI and expect this figure to grow. The number of new claims made in the first half of 2017 was 32% higher than the last six months of 2016.
However, the bank have said they still cannot be sure that they have set aside enough to pay the final bill.
According to Lloyds’ Results Announcement new calculations have revealed that a further 1.2 million complaints are expected before the claims deadline on the 29 August 2019, equating to approximately 9,000 claims per week.
Since January 2011, £27.9bn has been paid to customers who complained about the way they were sold PPI.
bbc.co.uk/business: Lloyds sets aside another £700m for PPI insurance claims – 27.07.2017
bbc.co.uk/business: Barclays sets aside extra £700m for PPI – 28.07.2017
TheGuardian.com – Barclays sets aside extra £700m for PPI claims – 29.07.2017
Lloyds – Results Announcement – 07.2017
http://www.lloydsbankinggroup.com/globalassets/documents/investors/2017/2017_lbg_hy_results.pdf – Page 69
Monthly PPI refunds and compensation – 04.10.2017
Barclays – Results Announcement – 06.2017