RBS facing mega fine over mis-selling scandal

RBS facing mega fine over mis-selling scandal

Royal Bank OF Scotland (RBS) is facing a mega fine of up to £5 billion for its part in yet another financial mis-selling scandal.

Shares in the bank fell by 1.5% on the first trading day of the New Year after news of the possible scale of the fines became public.Read More

SUCCESS STORY – Amber gets the wedding of her dreams

kissing gate

Amber Arnold and Toby Miller had been together for eight years and were working hard towards getting their dream wedding.

Everything seemed to be going well.  Amber got a promotion in her job and they finally got their first house.  Toby was approaching his final qualification to become a civil engineer and everything seemed set fair.Read More

Competition watchdog to investigate big four banks

Competition watchdog to investigate big four banks

Britain’s big four banks are being investigated by the Competition and Markets Authority (CMA) who are accused of controlling 77% of the country’s 65 million personal accounts but failing to offer good service and competition.

Consumer affairs editor Sean Poulter of the Daily Mail says the investigation will challenge the ‘stranglehold’ the banks have over personal accounts while offering ‘poor service and rip-off deals’.Read More

SUCCESS STORY – I had no paperwork, but GB won the day for me anyway!

elderly couple

Ex-serviceman David Fields knew deep down that he had been mis-sold PPI, but never made a claim because he didn’t have the paperwork to prove it.

Said David: “When we moved home the last time, we had a massive clear-out and all the paperwork was destroyed at that time.  I had a strong feeling that we had been mis-sold PPI in the past, but had no way of proving it.”Read More

GB backs new crackdown on nuisance cold calling

GB backs new crackdown on nuisance cold calling

New laws designed to outlaw nuisance marketing calls and texts are to be brought in within weeks says Culture Secretary Sajid Javid.

The new rules will drastically lower the threshold of what is considered to be a spam call or text and will give the Information Commissioners Office the power to fine firms caught breaking the rules up to £½ million.Read More

Lloyds to slash jobs, close branches and set aside another £900 m for PPI

Lloyds to slash jobs, close branches and set aside another £900 m for PPI

Lloyds Banking Group (LBG) has confirmed it is to slash 9,000 jobs, close 150 high street branches and set aside an extra £900 million to pay future successful PPI complaints.

The PPI provision is double what industry insiders had expected and means the bank has increased its PPI provision by £3.3 billion in 2014 alone.  There was £1.8 billion in February, a further £600 million in July and now almost a billion more in the third quarter of the year.Read More

Massive increase in PPI provision for Clydesdale

Massive increase in PPI provision for Clydesdale

Clydesdale Bank has just announced a massive increase in its provision for the cost of repaying mis-sold PPI.

The bank’s owner – National Australia Bank – announced it had set aside £75 million in August, but since then the Financial Conduct Authority (FCA) has ordered all UK banks to re-examine 2.5 million past cases because it wasn’t satisfied the all complaints had been treated fairly.Read More

HSBC and Santander boost PPI claims provision

HSBC and Santander boost PPI claims provision

Both HSBC and Santander have boosted their PPI claims provision in their half year figures just announced.

HSBC set aside a total of £139 million for UK customer redress – £115 million for future successful PPI claims and the remainder for poor investment advice and interest rate swaps. Santander’s PPI figure was £65 million.Read More

Banks could be facing another £1.5 billion hit for new PPI claims

Banks could face another £1.5 million hit for new PPI claims

Britain’s high street banks could be facing another £1.5 million bill for mis-sold PPI, experts claim.

Insiders are claiming that the banks will use next week’s half yearly results statements to announce that they are increasing their PPI provision because of an accelerated number of new claims, particularly for policies sold before 2005.

New money

Sky News say that Barclays, Lloyds Banking Group and Royal Bank Of Scotland (RBS) will announce the new money which will take the amount set aside for paying successful claims to ‘well over £20 billion.’

Official figures released by the Financial Conduct Authority (FCA) show that the banks have already paid out £15.1 billion in successful claims since January 2011 and are still paying out claims at the rate of £424 million a month.

Set aside

To date Lloyds Bank Group has set aside £9.8 billion for compensation with Barclays next in line at £3.95 billion. RBS has set a figure of 3.1 billion and HSBC has allocated £2.1 billion.  Other smaller banks have set aside lower amounts.

It is believed Barclays will set aside the largest figure in this round because unlike the others they have not made any increase since last July.


There is also speculation that the need to set aside more money will revive the banks’ plans for a time-bar to put a cut off limit for the submission of new claims.

Many of the new claims are being made for policies sold before January 2005 which was the reference point for the unsuccessful judicial review brought by the banks in 2011.  Banks are obliged to keep records for seven years, which means neither banks nor clients may have accurate records for claims to be made and investigated.


The British Bankers’ Association (BBA) had tentative discussions with the FCA regarding a potential time bar.

Consumer action groups were hostile to the plan and FCA chief executive Martin Wheatley said earlier this year he was sceptical about the prospects of such an exercise.

Have the banks underpaid PPI claims by £1 billion?

Have the banks underpaid PPI claims by £1 billion

Britain’s leading banks and two major credit card companies may have underpaid PPI claims on credit cards by as much as £1 billion, an investigation has revealed.

The shortfalls relate to credit card claims where the cost of the mis-sold PPI triggered default charges. The Financial Ombudsman Service (FOS) has said there is ‘no question’ that charges triggered by mis-sold PPI premiums must be refunded to victims.Read More