Sep 9, 2019
Lloyds and Barclays face billions of pounds in new PPI costs
Lloyds Banking Group and Barclays have both announced they are facing billions of pounds in new costs to cover a late rush of claims for the mis-selling of Payment Protection Insurance. Barclays said it faced new costs of £1.2bn-£1.6bn. Both banks have already paid out huge sums to cover compensation claims. Last month's final deadline for PPI compensation prompted a surge of last-minute claims from consumers. By May, Lloyds had set aside some £19.5bn to cover PPI claims, but this bill will have now risen. Last week, RBS said it expected to take an additional charge of between £600m and £900m, while shares in CYBG fell sharply after it warned it would take a hit of up to £450m. Estimates suggest that the last-minute surge in claims means that banks will ultimately have set aside well over £50bn in total to pay for the PPI scandal.
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