Banks Set Aside Billions For PPI Reclaims
Some of the UK High Street’s biggest banks are preparing for billions of pounds in PPI reclaims.
The banks setting aside six- and even seven-figure sums for PPI reclaims include the Yorkshire Bank and Lloyds TSB in England and the Clydesdale in Scotland.
The banking industry is bracing itself for millions of PPI reclaims from consumers mis-sold payment protection insurance (PPI). Reclaims could severely hit the annual profits this year of some of the beleaguered industry’s biggest names.
PPI reclaims to cost banks billions
In mid-May 2011 the National Australia Bank, which owns the Yorkshire and the Clydesdale in the UK, announced that it had earmarked £100 million for PPI reclaims. This was more than six times more than its previous PPI reclaims estimate of £15 million announced in early May.
At the same time the UK arm of the Australian banking giant said they had made pre-tax half-year profits of £101 million.
On 9 May the HSBC bank said that it had marked down $440 million (£270 million).
These amounts are dwarfed by the amount set aside for PPI reclaims by the Lloyds Banking Group – a monumental £3.2 billion.
Banks wait for PPI reclaims avalanche
The figures are so high for one reason: there is an avalanche of PPI reclaims cases on the horizon and the banks want to be fully prepared for it.
Millions of UK consumers may have been mis-sold PPI in the past, and the British Banking Association recently said it would not challenge a High Court ruling that PPI reclaims could be applied for retrospectively.
It’s a High Court decision that could cost the High Street banks billions.
Are you eligible for a PPI reclaim?
If you believe you were mis-sold a PPI policy in the past then you could be eligible for one of the millions of PPI reclaims the banks are expecting. Call us now on 0844 5766240 to see if you can apply.
