PPI

Compensation paid to victims of payment protection insurance mis-selling has soared since banks admitted defeat in their bid to block payouts.

Taxpayer-backed Lloyds Banking Group has become the latest bank to announce a hit to its financial performance due to compensation payouts for mis-sold payment protection insurance (PPI).

Barclays reported a 33% drop in half-year profits to £2.6 billion after it took a £1 billion hit to cover compensation for customers who were mis-sold payment protection insurance.

The UK arm of Santander said today it had set aside more than half a billion pounds to cover the costs of mis-selling payment protection insurance (PPI) to its customers.

The number of consumers making claims to get compensation when a financial firm is unable to repay them has gone up, show new figures published today.

HS

Lloyds Banking Group has said "sorry" for flogging worthless payment protection insurance (PPI) policies and promised a catalogue of measures to provide compensation for victims, in yet another sign of capitulation by banks.

Barclays will pay in-full all of its customers' payment protection insurance (PPI) claims that were put on hold on or before 20 April.