Mis selling bill for big banks gets bigger!
The analysts Standard & Poors estimate that the UK big four banks – Barclays, HSBC, the Royal Bank of Scotland and Lloyds Banking Group collectively face another £19bn of conduct and litigation charges by the end of 2016. These charges are in addition to the £42bn of charges in the five years to 2014. And, when you add in the costs of other banks such as Clydesdale, the Yorkshire and Co-op and building societies such as the Nationwide and the Yorkshire then the total cost of the scandals for the 13 financial firms surveyed stands at £48bn.
Of that the total cost of the PPI mis selling scandal has now reached £26bn although the S&P analyst predicts that the provisions for PPI amongst banks will now start to reduce.
Solicitor Paul Cahill commented:
“The costs of mis sold PPI have continued to rise with each report commissioned. Claims for mis sold payment protection insurance remain high and although the analysts foresee a reduction in bank provisions for this I believe that there are a significant number of people yet to claim.
“Whilst the £19bn estimated by S&P in the next two years is less than the £22bn for the past two years this is hardly a steep decline and so, whilst PPI mis selling claims are reducing they continue to remain stubbornly high and will do so for the immediate future. There remain many people who have yet to reclaim mis sold PPI and I would say to anyone in this position - take action now!”