Which? response to Barclays increasing PPI provision
Barclays’ further £600 million provision for paying back mis-sold Payment Protection Insurance, announced today, takes the total amount set aside by the banks to £13.6 billion.
If current pay-out rates continue, we estimate that even with the increase, Barclays’ new provision would only last until about October this year.
Which? executive director Richard Lloyd said:
“Some banks have been in denial about the true scale of the Payment Protection scandal. They must come clean about how many more PPI complaints they’re expecting, publish updates on the amounts that have been paid back, and claw back bonuses from executives who presided over this £13.6bn mis-selling fiasco.
“The banks should be proactively contacting their customers and making sure it is as easy as possible for those with a legitimate claim to get their money back, without any hassle.”
If you think you’ve been mis-sold PPI, it’s easy to claim it back yourself for free. Just visit www.which.co.uk
Notes to editors
Which? analysis suggests that, if PPI payouts continue at the same pace as last year, the following banks’ provisions would be used up by:
Lloyds – March 2013
Barclays – October 2013
RBS – June 2013
HSBC – December 2013.
New PPI claims continue to rise, more than doubling to 2.2 million in the first half of 2012, a 129% increase on the six months prior.
Major banks amount paid back for mis-selling PPI
Bank Total amount paid out to 30 September 2012 (£ million) Bank Total amount paid out to 31 December 2012 (£ million) Lloyds Banking Group £3,700 Barclays £1,770 RBS £1,041 HSBC ~£610*
Estimated date of when current provisions could run out (banks who announced Q3 results)
Bank Amount of provision left as at 30 September 2012.
Estimated month when current provision could run out if payout rates continue at the same pace as during 1 January 2012 – 30 June 2012 Lloyds banking Group £1,600 March 2013 RBS £684 June 2013 HSBC ~£735** December 2013*
Estimated date of when current provisions could run out (banks who announced Q4 details)
Bank Amount of provision left as at 31 December 2012.
Estimated month when current provision could run out if payout rates continue at the same pace as during 1 January 2012 – 31 Dec 2012 Barclays ~£1,000* October 2013*
* Please note: Barclays and HSBC did not disclose the amount they had paid out in Jul-Sep 2012, so we have assumed that the pay-out rate in Jul-Sep 2012 continued at the same rate as Jan-Jun 2012.
** Totals for HSBC have been converted from US dollars to GB pounds at the exchange rate on 5 November 2012.