This article was last updated on April 16, 2022
Canada: 
Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
The U.K. banking industry hits by a monumental bill for the past mis-selling of payment protection insurance (PPI) today as the amount set aside by 14 banks, building societies and credit card firms stood at £12.3bn.
Lloyds Banking Group has borne the biggest bill after setting aside another £1 billion taking its total bill to £5.3 billion, dragging it to a third-quarter loss.
Analysts at JPMorgan has recently estimated that the final bill is likely to hit £15bn as millions of past customers continue to put claims against mis-selling, in the hope of receiving a payment, currently running at an average of £2,750 per claim.
Mis-selling scandals are not new to Britain’s financial services industry.
In 1994, the Financial Services Authority began reviewing the mis-selling of personal pensions, aimed at people wrongly sold pensions between 29 April 1988 and 30 June 1994.
Mis-selling used to happen when the financially better off individuals at retirement in their employer’s pension scheme were advised to leave or not join their employer’s pension scheme.
By June, 2002, 1.7 million consumers’ cases were reviewed, and around £12bn had been paid out in compensation. The final bill was expected to stand at £13.5bn.
If JP Morgan’s analysis is right, the amount paid out in PPI mis-selling claims will definitely surpass £13.5bn, making it the largest compensation scheme in the modern history of the British financial services industry.
Article viewed on Oye! Times at www.oyetimes.com.
Be the first to comment