Barclays PPI compensation bill rises £1.1 BILLION in just 3 months
It’s the season when UK banks and lenders have to advise the city, and their shareholders, of their quarterly figures.
This also means that we can pretty much guarantee that the PPI bill, which is now well above the initial estimation of £25 BILLION, will be added to.
Tesco soon following suit, adding £27 MILLION to it’s pot.
Next up, it’s the turn of Barclays.
Yet another addition
Not long ago, three months in fact, the Barclays PPI compensation fund saw £900 MILLION added to it. Surely this astronomical amount of money would see the bank not have to add anymore for a while? WRONG!
Yesterday Barclays announced, in addition to £500 MILLION it has to pay for rigging foreign exchange rates, it’s was adding a further £170 MILLION to it’s Barclays PPI compensation fund.
This figure sees the total PPI bill in the last few days, increase by close to £1.1 BILLION, with the likes of HSBC, Royal Bank of Scotland, Natwest, Santander and the rest still yet to make their announcements.
In the last round of additions, three months ago, the bill increased by £3 BILLION. Whilst we don’t expect it to increase by quite that amount this time, our bet is that £2 BILLION will be added to the ever increasing compensation pot.
Why does the bill keep increasing?
It’s simple really, the banks cannot put aside what they truly believe it will cost in one go as the negative impact this would have on it’s share price could potentially be catastrophic.
So, what do they do?…
Banks increase their PPI bills steadily, so as to still attempt to report a profit. This keeps shareholders happy, and perhaps more importantly, oblivious to what the actual final cost will be.
Add into that mix, the odd occasion when a bank may not add to it’s fund, such as Lloyds did earlier this year, and this sends so called expert analysts into a spin, making incorrect predictions that the PPI scandal is almost at an end!
What will the final bill be?
It’s now clear that the banks initial estimation that the final bill would be £25 BILLION, was well short of what it actually will cost. Our figures suggest a bill closer to £42.5 BILLION, but this is dependant on two things happening…
- The estimated 7 million who have yet to make a claim, do so. With a significant amount of UK consumers being sold PPI without their knowledge, there remains a huge number still to come forward.
- When banks and lenders reject valid claims, which they systematically do, never take no for an answer
When the PPI scandal first broke, making a claim was laborious and time-consuming, but thankfully times have changed and now it couldn’t be easier.
Stake your claim
Your Money Claim are the industry experts when it comes to making PPI claims, and Packaged Bank Account claims.
Don’t worry if you’re unsure whether you’ve had PPI, if you don’t have any paperwork, or even if you can’t remember your account numbers.
What’s more, checks are free!
So, what’s to lose? Simply fill in our online form which can be found on any page, download a pack, or chat with one of our experts on the phone, via email or using our online chat facility.
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