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Blog Category: PPI


PPI News – Studio Retail adds £10 million for PPI

Studio Retail adds £10 million for PPI

Studio Retail has become the latest organisation to boost its PPI provision after a surge of claims leading up to the PPI deadline in August.

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PPI News – Barclays confirm another £1.4 billion for PPI

Barclays confirm another £1.4 billion for PPI

The day after Royal Bank of Scotland (RBS) announced it was adding £900 million to its PPI compensation pot, Barclays confirmed it has added £1.4 billion to its own redress fund.

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PPI News – HSBC adds £302 million for PPI

HSBC adds £302 million for PPI

HSBC has become the third of the big four UK banks to add millions of pounds to its PPI compensation pot AFTER the claims deadline in August.

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PPI News – Shop Direct’s surprise £241 million PPI provision

Shop Direct’s surprise £241 million PPI provision

Online retailer Shop Direct has shocked its investors with a higher than normal penalty for PPI mis-selling, leading to a huge widening of losses.

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PPI payouts jump by almost £100 million in a month

PPI payouts jump by almost £100 million in a month

Official figures show that the amount of compensation paid to successful PPI claimants has jumped by almost £100 million in a single month.

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PPI total cost revised upwards to £53 billion

PPI total cost revised upwards to £53 billion

The total cost of the PPI mis-selling scandal has been revised upward to £53 billion after another bank said it would need to add millions more to its PPI pot to pay out future successful claims.

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Are we slipping into recession?

Are we slipping into recession?

Just as we seem to be fully recovering from the depths of the recession brought on by the 2008 financial crisis, economists say they’re picking up warning signs that we might be slipping into another.

In the week that Chancellor of The Exchequer Sajid Javid pronounced the end of austerity, a new report called the Purchasing Managers Index suggests the economy may still be in trouble.

Slipping

Economist Chris Williamson said: “The lack of any meaningful growth in the dominant services sector raises the likelihood that the UK economy is slipping into recession.
“The construction and manufacturing sectors also shrunk in August.”

Services

Services account for 80% of the UK’s economy and according to the report they barely expanded in August with a score of 50.8 compared to 51.4 in July.
Any figure above 50 denotes growth, but below 50 means the market is contracting. The overall figure when manufacturing and construction are included is 49.7 – the second contraction in three months.

Negative growth

The contraction between April and June was the first since 2012.
A recession is defined as a period where negative growth is experienced in two or more consecutive quarters.
Mr Williamson commented: “While the current downturn remains only mild overall, the summer’s malaise could intensify as we move into autumn.”

Blamed

The dip is being blamed on Brexit uncertainty and higher business costs.
IHS Markit, who produced the report, say UK firms are hiring and taking on new clients at a slower rate while they try to work out if there will be a ‘no-deal’ Brexit at the end of October.
It said that service-based industries like hotels, restaurants, banks and insurers are having their profit margins squeezed by higher wages, fuel costs and utility bills.

An end to austerity

Chancellor Javid did not seem concerned about the possibility of a recession when he announced £13.8 billion worth of investment across all government departments, claiming he had ‘turned the page on austerity’.
He said: “No department will be cut next year. Every single department has had its budget for day to day spending increased at least in line with inflation. That’s what I mean by the end of austerity.”

Not convinced

But not everyone was convinced the spending spree marked the end of austerity.
Director of the Institute for Fiscal Studies, Paul Johnson, said: “We of course live in a time of extreme economic uncertainty and I think the big risk in saying that austerity is over is that the economy starts to do significantly worse, which it might if we have a no-deal Brexit.

“Then the deficit and debt will start rising and we are in danger of having another dose of austerity to get that over with for a second time.”

PPI News – Lloyds PPI bill of £2.45 billion ‘significantly impacted’ profits

The additional provision of £2.45 billion for PPI complaints in 2018 ‘significantly impacted’ the profits of Lloyds Banking Group (LBG) according to chairman Lord Blackwell.

PPI News – Lloyds PPI bill of £2.45 billion ‘significantly impacted’ profits

The additional provision of £2.45 billion for PPI complaints in 2018 ‘significantly impacted’ the profits of Lloyds Banking Group (LBG) according to chairman Lord Blackwell.

PPI News – HSBC profits plunge with mass job cuts and PPI surges

Announcing a drop in profits of 33%, HSBC is to axe 35,000 jobs globally and is still processing tens of thousands of PPI claims.

PPI News – HSBC profits plunge with mass job cuts and PPI surges

Announcing a drop in profits of 33%, HSBC is to axe 35,000 jobs globally and is still processing tens of thousands of PPI claims.

RBS to change its name to Natwest

Royal Bank Of Scotland Group (RBS) is to change its name to NatWest later this year.


PPI – The Beginning of the End?

PPI – the beginning of the end

Well, that’s it! The PPI saga is over and done with as the much-heralded deadline passes into history.
But is it really over?

Not over for some months yet

No – it won’t be over for some months yet while the banks catch up on the millions of last minute complaints which flooded in with a possible £10 billion still available for successful claims.

And it would appear the deadline is not completely dead as claims for mis-selling can still be made through the courts, using a solicitor.

Direct

They can no longer be made direct by an individual or through a claims management company (CMC), using what is called a non-contentious approach which does not involve legal action.

But if a consumer believes they have a strong enough case – like being charged excessive commission on the sale of their policy under the Plevin ruling – then they still have the right to pursue the lender through the courts to get their money back.

How many?

It will take some time before we know just how many people left it until the last minute to make a claim, but it is understood the banks have been swamped with new complaints in the final countdown phase.

Lloyds Banking Group (LBG) said they were receiving 190,000 inquiries a week and both they and HSBC were so surprised at the volume of claims that they both added £½ billion to their compensation pots in the last few weeks. Santander added another £70 million to theirs.

So great was the last minute rush that all but one of the big High Street banks kept their phonelines open until the very last minute and drafted in extra staff to deal with the deluge of inquiries.

Total cost?

It will also take some time before we finally know how much Britain’s biggest ever financial scandal has cost.

The current total payout is just over £36 billion, but research by respected think tank New City Agenda suggests that it could be as high as £48.5 billion when the administrative costs of checking all the claims is taken into account.

Another £100 million

It is understood that CYBG – the former Clydesdale-Yorkshire Bank – intend to add another £100 million to their compensation pot when they announce their latest quarter’s figures in a few months’ time.

Other major banks have said they will be constantly monitoring their claims levels and could possibly further increase their own provision once the final number of claims is known.

Worried customers

Consumers wanting to make a last minute online claim against NatWest were left wondering if their complaints had been received when the bank’s website crashed on the final day, having also been down the previous day.

Anxious customers took to Twitter to complaint about the outage:

A NatWest spokesman told The Sun newspaper that claims could still be made by phone, but admitted problems had been reported using that method too.

“This may be the beginning of the end, but it’s certainly not the end yet.”

PPI News – Taxman hits the PPI jackpot

PPI News – Lloyds PPI bill of £2.45 billion ‘significantly impacted’ profits

The additional provision of £2.45 billion for PPI complaints in 2018 ‘significantly impacted’ the profits of Lloyds Banking Group (LBG) according to chairman Lord Blackwell.

PPI News – Lloyds PPI bill of £2.45 billion ‘significantly impacted’ profits

The additional provision of £2.45 billion for PPI complaints in 2018 ‘significantly impacted’ the profits of Lloyds Banking Group (LBG) according to chairman Lord Blackwell.

PPI News – HSBC profits plunge with mass job cuts and PPI surges

Announcing a drop in profits of 33%, HSBC is to axe 35,000 jobs globally and is still processing tens of thousands of PPI claims.

PPI News – HSBC profits plunge with mass job cuts and PPI surges

Announcing a drop in profits of 33%, HSBC is to axe 35,000 jobs globally and is still processing tens of thousands of PPI claims.

RBS to change its name to Natwest

Royal Bank Of Scotland Group (RBS) is to change its name to NatWest later this year.


PPI payouts jump by almost £100 million in a month

PPI payouts jump by almost £100 million in a month

Official figures show that the amount of compensation paid to successful PPI claimants has jumped by almost £100 million in a single month.

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PPI News – Lenders add a staggering £4.9 billion AFTER PPI Deadline

Lenders add a staggering £4.9 billion AFTER PPI deadline

Britain’s lenders have added a staggering £4.9 billion to their PPI compensation pots AFTER the claims deadline on August 29th.

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