According to a report on Sky News over the weekend, the Banks in the UK are once again preparing to put aside a further £1 billion in provisions to compensate consumers who were mis-sold Payment Protection Insurance (PPI).
The report says:
"Britain's biggest banks are poised to add hundreds of millions of pounds more to their collective bill for mis-selling Payment Protection Insurance (PPI) in the coming weeks even as they accelerate efforts to persuade the regulator to impose a deadline on claims.
I understand from senior bank executives that the major lenders could add more than £1bn in aggregate to the industry's tab for PPI when they report full-year results during the next six weeks.
The figures are still being finalised and so represent preliminary estimates only. But if borne out, the figure would take the bill for the four largest UK banks (Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland) to beyond £11bn, further cementing its status as one of the biggest British mis-selling scandals ever.
Bankers say that the latest wave of compensation is being used in talks with the Financial Services Authority (FSA) as evidence that a deadline for claims is essential if banks are to continue rebuilding capital levels while growing lending to the real economy."
For more on this story, visit the Sky News website.
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