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Barclays adds further £600m for PPI claims

Nia Williams

February 5, 2013

The bank said the latest provision, largely the result of a higher than anticipated response rate to proactive mailings in quarter four, represents the best estimate of expected future PPI payments and claims management costs.

Following a £700m provision in quarter three for claims, the cumulative fund set aside for PPI claims now stands at £2.6bn of which £1.6bn had been used by 31 December 2012.

In a statement released to the London Stock Exchange the bank said it will continue to monitor actual claims volumes and the assumptions underlying the calculation of the PPI provision.

Craig Lowther, managing director of PPI claims company, MoneyBoomerang, said: “In fairness to Barclays it is taking the lead on meeting its obligations and is taking a proactive stance in the claims process and is putting many other banks to shame.

“However there remains a deep-seated intransigence at many banks; an instinct to delay rather than play ball. Either that or to pass valid claims through to the Financial Ombudsman Service which is struggling.”

Lowther added: “We continue to call on both the Financial Services Authority and the FOS to increase pressure on the lenders who are dragging their heels.”


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