Taxpayer-backed Lloyds now takes almost half of the total PPI bill as it announces an additional £750 million to its PPI redress package. Along with Lloyds, RBS and HSBC had announced their respective additions to their own PPI redress packages.
The total PPI bill is now at £14 billion. However, experts warned that it could possibly reach more than £20 billion in 2014 if PPI complaints continue to increase by the entry of the following year.
PPI or payment protection insurance repays loans, mortgages and credit cards in case you get sick or become unemployed. However, many bank representatives and other staff mis sold the insurance to increase their work volume. An average mis sold PPI could guarantee you £3000-3500 in refunds. It is advised that you contact www.PPIClaimsAdviceLine.com or other claims management companies before you make your claim.
The Financial Conduct Authority announced that the number of PPI complaints had dropped by 15% early in the first two quarters of 2013. However, the Financial Ombudsman said that it had received 26% more complaints in the first two quarters of 2014. A More than 265,000 complaints were reported by the organisation, all relating to PPI.
Banks are also in deep trouble with international regulators regarding the manipulation of Libor and Euribor rates aside from PPI.