Today’s announcement that Barclays will be making an extra £1.35 billion provision for mis-sold Payment Protection Insurance (PPI) takes total PPI provisions to £17.9 billion, with further increases expected when other high-street banks report later this week.
Total Barclays PPI provisions are now £4.126 billion and this is the fifth time Barclays have announced an increase in PPI mis-selling provisions.
Which? executive director Richard Lloyd said:
“The eye-watering PPI compensation bill continues to escalate, showing how much banks have been in denial about the scale of their mis-selling.
“The banks still have a long way to go to clean up their act and one way they should do so is by making it much easier for consumers entitled to PPI refunds to claim their money back.
“We need to see a big change in the culture of our banks to stop mis-selling scandals at source, and genuine competition, so that bankers get the message that bad behaviour will not be tolerated.”
Notes to Editors
People can use our free online tool to claim for a PPI refund.
To ensure that all mis-sold customers are compensated, Which? is calling for:
– Banks to write to all customers that have bought PPI, but not yet complained, notify them of how to complain and issue at least one subsequent follow up letter.
– Banks to publish how they are dealing with PPI complaints and details of their approach, including how they have estimated their PPI provisions.
– A more robust independent oversight of the banks’ redress programmes.
– The Financial Conduct Authority to take enforcement action against banks which continue to fail to deal with complaints fairly, including action against the individual executives responsible for over-seeing their bank’s complaint processes.