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Barclays' PPI mis-selling bill up to 2.6 billion

By the Press Association

The Press Assocation

The Press Association is a news wire with a large reporting team. We use it for additional stories on mainstream issues. Views represented do not necessarily reflect those of MoneySavingExpert.com.


5 February 2013

Barclays has set aside a further 600 million for refunding customers who were mis-sold payment protection insurance (PPI).

Today's announcement means Barclays' total bill for PPI mis-selling has risen to 2.6 billion.

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More than 8 billion has been paid out by all firms to victims of PPI mis-selling since January 2011, according to the Financial Services Authority (FSA), with the total industry-wide bill set to top 15 billion.

Barclays' move comes only weeks after banks asked the FSA to set a deadline on PPI mis-selling claims, a proposition which Money Saving Expert strongly opposes (see the Claim PPI now MSE News story).

Barclays is also setting aside another 400 million for claims on interest rate swap products sold to small and medium-sized businesses, taking its bill here to 850 million.

Interest rate swaps were marketed as low-cost protection against rising interest rates, often as a condition of a business loan. But businesses as small as bed-and-breakfasts and takeaway shops were left with major bills after the financial crisis caused interest rates to slide.

Additional reporting by Jamie Stinson.

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