The increasing numbers of PPI claims in the United Kingdom is far from giving banks the financial breather they need to survive the harsh industrial climate brought about by the failure of their incentives and workplace systems. Lloyds had recently allocated an additional £750 million to their total refund bill, having them the biggest UK bank to have accrued PPI mis selling.
Lloyds Banking Group has its bill on £8 billion, more than half of the total PPI bill at £14 billion. Next to Lloyds, RBS had announced an additional £250 million for mis sold PPI refunds, having them a total of £2.6 billion for PPI redress. HSBC had added less than a billion to their PPI refunds.
PPI is a policy designed to repay loans and mortgages when consumers get sick or have an accident. Because of the intent to increase work volume for incentives, many bank employees mis sold the insurance to ineligible consumers. Anyone who was mis sold PPI could know the total refunds they can get through the use of a PPI calculator online.
The influx of PPI claims, born about by the calls to action by claims management companies and advertisements, had banks blaming the claims managers for increasing the financial industry’s administrative costs due to fraudulent claims.
As the Financial Ombudsman reaches its one-millionth PPI complaint, experts speculate that the entire PPI bill could reach more than £20 billion in the following year.