Official figures just released show that in the month of the PPI claims deadline Britain’s banks paid out £391.6 million in fresh compensation for mis-sold policies.
The Financial Conduct Authority (FCA) figures show that the total paid since January 2011 is now £36.8 billion, of which more than £2.8 billion has been paid out so far this year – an average of more than £⅓ billion a month.
How much more
Speculation is now rising about how much more will be paid out before the mis-selling saga is finally over.
Since the surge of new claims trying to beat the deadline began the banks have added billions to their PPI provision pots.
The latest to announce an increase was the former Clydesdale Yorkshire Bank which has been recently re-branded Virgin Money, who added another £450 million. This brought the total of additions to almost £5.3 billion once the deadline had passed.
Top of the list was the massive £1.8 billion earmarked by Lloyds Banking Group (LBG) with the lowest being Tesco Bank at £45 million The full list is:
- LBG £1.8 billion
- Barclays £1.4 billion
- Royal Bank of Scotland (RBS) £900 million
- Virgin Media £450 million
- HSBC £302 million
- Shop Direct £241 million
- Santander £99 million
- Co-op Bank £60 million
- Tesco Bank £45 million
Before the deadline the average claim was resolved with a final decision between 8 and 16 weeks, but the FCA has warned that the banks have told them they were so swamped with claims that it could be Summer 2020 before the last payouts are made.
Exact details are difficult to come by, but RBS (including NatWest) has confirmed it will be the summer before their claims are complete while Barclays said it couldn’t disclose volumes of complaints though it had received them in ‘unprecedented volumes’.
Lloyds Banking Group (LBG) – which includes both Halifax and Bank of Scotland – has received the lion’s share of complaints and has paid out £22 billion in compensation so far.
It said it was working through cases as quickly as it could, but would give no detail about when it expected to complete the task.
Nationwide said it received more than 60,000 inquiries and 5,000 complaints on deadline day itself and in common with HBSC said that any inquiry received was automatically turned into a claim if PPI was present on any agreement.