Finance

Barclays Increases PPI Claim Provision by £600

Second-in-line Barclays increased its PPI provision for the UK to £600 having their total amount of £2.6 billion in compensation next to Lloyds, who has £5.3 billion in total. Barclays chief Anthony Jenkins confirmed that the bank mis sold PPI when they sold the Barclaycard, which he himself supervised and the bank sold until 2009.

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Along with Barclays, the total £13 billion compensation bill includes RBS’ £2.3 billion and HSBC’s £1.3 billion provision. Experts estimate that the amount of compensation can go higher in the next few years.

Being one of the biggest financial scandals in the United Kingdom, PPI was sold to at least 3.2 million customers. The Financial Ombudsman Service reports that it has reached an 11,000 claims weekly number from customers.

The financial pressure caused by PPI mis selling had banks to ask the Financial Services Authority to impose a deadline on PPI claiming. However, the Financial Services Authority considered the option yet found it to be unfair for customers as the consumer group Which? points out PPI claims have a deadline as soon as banks inform customers they can make a claim.

Aside from their PPI fiasco, Barclays is also involved in the Libor rate-rigging scandal, which prompted the resignation of former president Bob Diamond and a fine of £290 million by UK and US regulators.

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