PPI Pot extends as 'Bad bank' adds £64 million | Gladstone Brookes

PPI Pot extends as ‘Bad bank’ adds £64 million

‘Bad bank’ sets aside another £64 million for PPI

UK Asset Resolution (UKAR) – Britain’s so called ‘bad bank’ – has set aside another £64 million to pay future successful claims on mis-sold PPI policies before the August 29th claims deadline.

⚠️ With the PPI Deadline less than a year away, now would be the perfect time to check!

The quango also confirmed it has finally paid off the last of the £48.7 billion bail-out cash used by the government at the height of the 2008 financial crisis to manage the failed debts of Northern Rock and Bradford & Bingley.

Going bust

Both banks were effectively going bust when the Chancellor stepped in and nationalised them. The money-making divisions were sold off while the massive loan books were combined into a new entity specially set up to manage them going forward.

In common with the rest of the UK banking industry, the two banks had been mis-selling PPI before the financial crash and have been paying out on successful claims by consumers ever since.

Underestimated

In its annual report UKAR announced the extra £64 million was needed because it had underestimated the volume of claims from consumers trying to beat the deadline.

Commenting on the paying back of the bail-out cash, UKAR confirmed the final repayment was made in May after the successful sale of two Northern Rock Asset Management (NRAM) loan books.

Delighted

Chief executive, Ian Hares, said: “I am delighted that, in under 10 years, we have been able to repay in full the government loan of £48.7 billion.

“Looking forward, we are focused on the disposal of the remaining Government investments in NRAM and B&B whilst ensuring that customers are appropriately protected.”

Offload

It still manages £5.5 billion in loans and accounts for customers, but expects to be able to offload them in 2020.
Its current balance sheet stands at £11.4 billion, down by £8.4 billion over the year and by more than £100 billion since 2010.

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This entry was posted in News.

You can do the claim directly yourself to the lender for no charge. You can also approach the Financial Ombudsman Service and Financial Services Compensation Scheme for free if you wish for them to review your case, if you have approached your lender first, and it falls within their remit.

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