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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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