Yorkshire and Clydesdale Banks have set aside a further £51 million to pay customers making PPI claims – almost as much as the amount they declared in pre-tax profit for the six months ending March 31st 2013.
The joint banks had already earmarked £100 million for PPI claims in June 2011 and chief executive David Thorburn said the banking industry can learn many lessons, “some large, some small, but all important”, from the mis-selling of PPI and interest rate hedging products.
“I have spent a lot of time reflecting on this and we are acting now to prevent a recurrence in the future,” he added.
Both Lloyds Banking Group and Barclays decided not to increase their PPI claims provision in their recent profits declarations, both claiming that they expected the provision they have already made to be enough to cover current and future claims.
PPI claims biggest ever scandal
The high street banks have set aside over £16 billion to pay compensation for what has become the biggest ever UK financial scandal and the Financial Conduct Authority (FCA) calculates that around £9.3 billion has already been paid to successful claimants.
Consumers are still making tens of thousands of new complaints and the Financial Ombudsman Service have been forced to take on extra staff to deal with a huge increase in rejected claims in recent months.
The British Bankers’ Association have denied media reports that banks are deliberately turning down legitimate PPI claims in the hope that they would avoid having to pay up.
FOS chief executive Natalie Ceeney says: “Despite these record numbers, this mis-selling scandal shows no sign of slowing. Unless the banks sort out their complaints quickly and fairly, people will only face increasingly longer waits for justice.”
The service website is currently warning new claimants that they could wait up to three years before they receive a decision on their appeal.
Let us take the strain
Don’t be put off making a claim because you think it might be too long-winded, complicated or difficult. If you were mis-sold your PPI policy then you have the right to be compensated. The average PPI claims payout is around £2,700, but Gladstone Brookes have recovered £90,000 for a single credit card claim.
You can make a claim through us and we promise to persevere on your behalf to reclaim the money which may be due to you. We are PPI reclaim specialists who have so far recovered over £330 million for our clients.
Starting a claim is simple
- Make contact with us either by calling our claim line on 08000 461 825 or filling in the PPI claim form on this website
- We send your claim pack – just sign and return
- We process your claim