PPI News - Barclays only half way through PPI backlog

PPI News – Barclays only half way through PPI backlog

Barclays only half way through PPI backlog

Barclays is still only half way through processing the massive spike of PPI complaints received in the run-up to the claim’s deadline in August last year.

In its annual report the bank said it had received more than two million claims and enquiries as customers scrambled to beat the clock.

Outstanding

The report said: “Of the greater than two million items outstanding at Q319, materially all have now been processed into Barclays’ systems and 52% of the items processed have been resolved, including invalid items.”

No estimate has been given for when all claims will have been finally dealt with.

Compensation

The bank has set aside a total of £11 billion to pay out successful claims and the costs associated with their investigation.

By December 2019 it still had a balance of £1.2 billion which it believes will be enough to pay the remaining successful claims.

Estimates

However, it admitted the assumptions it had used to make the calculation were only estimates and more money might be needed to clear all outstanding claims.

The report said: “These assumptions remain subjective due to the uncertainty associated with the outstanding population of claims and information requests yet to be resolved.

It is possible that the eventual cumulative provision may differ from the current estimate.”

Total payout

Latest figures from the Financial Conduct Authority (FCA) show that to the end of September 2019 the British banking industry had paid out £37.2 billion in compensation since January 2011.

The official figures are always several months in arrears.

Monthly payouts have averaged more than £⅓ billion over the last two years and if that rate of payment is maintained the £38 billion barrier will be breached by the December figure.

Outstanding claims

The Barclays report reveals that they received more than two million claims and PPI requests in the run-up to the deadline and after four months work approximately a million still await a final decision.

Many of those decisions could take the form of rejections which will be appealed to the Financial Ombudsman Service (FOS).

In its latest report FOS says it has already seen a 72% increase in appeals so it would appear it would be some time yet before we know the final figures in the greatest financial scandal Britain has ever seen.

Related Story – https://www.gladstonebrookes.co.uk/blog/2020/02/13/ppi-news-fos-handling-3500-new-ppi-complaints-a-week/

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