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| Version 1 | Version 2 |
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| PPI – facts and figures from the 'biggest mis-selling scandal of all time' | PPI – facts and figures from the 'biggest mis-selling scandal of all time' |
| (5 days later) | |
| As the banks report their end-of-year results, yet more money is being put aside to compensate customers who were mis-sold payment protection insurance (PPI). Lloyds Group and HSBC have both boosted their provisions, with Lloyds adding £1.5bn and HSBC putting a further £199m in their respective pots. | As the banks report their end-of-year results, yet more money is being put aside to compensate customers who were mis-sold payment protection insurance (PPI). Lloyds Group and HSBC have both boosted their provisions, with Lloyds adding £1.5bn and HSBC putting a further £199m in their respective pots. |
| Here is a round up of what has been put aside so far by the main banks and building societies, how much has been claimed, and some other facts and figures which show the extent of what Which? calls "the biggest financial mis-selling scandal of all time". | Here is a round up of what has been put aside so far by the main banks and building societies, how much has been claimed, and some other facts and figures which show the extent of what Which? calls "the biggest financial mis-selling scandal of all time". |
| About 34m policies are thought to have been sold since 2001, alongside personal loans, credit cards and other borrowing. So far, almost £14bn has been set aside by the big sellers of the policies. | About 34m policies are thought to have been sold since 2001, alongside personal loans, credit cards and other borrowing. So far, almost £14bn has been set aside by the big sellers of the policies. |
| Lloyds Group | Lloyds Group |
| Lloyds Group has made the biggest provision for PPI mis-selling of any bank, putting aside £6.7bn so far to compensate customers of Lloyds TSB, Black Horse Finance, Halifax and Bank of Scotland. | Lloyds Group has made the biggest provision for PPI mis-selling of any bank, putting aside £6.7bn so far to compensate customers of Lloyds TSB, Black Horse Finance, Halifax and Bank of Scotland. |
| • By the end of 2012 it had spent £4.3bn on settling claims, of which about £700m went on admin. | • By the end of 2012 it had spent £4.3bn on settling claims, of which about £700m went on admin. |
| • In the last quarter of 2012 it spent £200m a month on settling complaints. | • In the last quarter of 2012 it spent £200m a month on settling complaints. |
| • It has more than 6,000 employees processing PPI claims. | • It has more than 6,000 employees processing PPI claims. |
| • In February it was fined £4.3m for delaying compensation payments to 140,000 customers. | • In February it was fined £4.3m for delaying compensation payments to 140,000 customers. |
| • It is currently writing to customers who may have been mis-sold cover. | • It is currently writing to customers who may have been mis-sold cover. |
| HSBC | HSBC |
| HSBC has added £199m to its provision, increasing the total to £1.5bn. | HSBC has added £199m to its provision, increasing the total to £1.5bn. |
| • So far £757m has been claimed by consumers. | • So far £757m has been claimed by consumers. |
| • It employs 700 staff in the UK to deal with the issue. | • It employs 700 staff in the UK to deal with the issue. |
| • It is currently in the process of contacting customers who it thinks may be able to make a PPI claim. | • It is currently in the process of contacting customers who it thinks may be able to make a PPI claim. |
| Santander | Santander |
| Santander has put aside £538m to cover claims from customers who were with Abbey and Alliance & Leicester. It hasn't increased its provision since July 2011. | Santander has put aside £538m to cover claims from customers who were with Abbey and Alliance & Leicester. It hasn't increased its provision since July 2011. |
| • It says it had just 6% of the PPI market. | • It says it had just 6% of the PPI market. |
| Nationwide building society | Nationwide building society |
| Nationwide has put aside £173m to date and paid out £42m of that. | Nationwide has put aside £173m to date and paid out £42m of that. |
| • This accounted for just 1.6% of the total industry provision on 30 September 2012. | • This accounted for just 1.6% of the total industry provision on 30 September 2012. |
| • Of the claims the society receives, 42% have never been sold a PPI policy – the majority of these (72%) are through claims management companies. | • Of the claims the society receives, 42% have never been sold a PPI policy – the majority of these (72%) are through claims management companies. |
| Royal Bank of Scotland | Royal Bank of Scotland |
| RBS has put aside £2.2bn to cover compensation to customers of RBS, NatWest, Lombard, Mint, Churchill and Direct Line. | RBS has put aside £2.2bn to cover compensation to customers of RBS, NatWest, Lombard, Mint, Churchill and Direct Line. |
| • Customers have so far claimed £1.3bn. | • Customers have so far claimed £1.3bn. |
| • About 1,800 staff members are dealing with complaints. | • About 1,800 staff members are dealing with complaints. |
| • In the second half of 2012, 51% of complaints by NatWest customers were successful, as were 45% of complaints by RBS customers. | • In the second half of 2012, 51% of complaints by NatWest customers were successful, as were 45% of complaints by RBS customers. |
| • The bank started writing to customers in September 2012 and will continue to do so throughout 2013. | • The bank started writing to customers in September 2012 and will continue to do so throughout 2013. |
| Barclays | Barclays |
| Barclays has so far made a provision of £2.6bn across all of its brands, which include Barclaycard. | Barclays has so far made a provision of £2.6bn across all of its brands, which include Barclaycard. |
| • It has so far spent £1.6bn settling claims, of which about 10%-15% has covered administration costs. | • It has so far spent £1.6bn settling claims, of which about 10%-15% has covered administration costs. |
| • About half of the claims it gets from claims management companies are invalid. | • About half of the claims it gets from claims management companies are invalid. |
| • About 2,500 members of staff are working on PPI cases. | • About 2,500 members of staff are working on PPI cases. |
| • It is "a good way" through writing to customers and expects to finish by June. | • It is "a good way" through writing to customers and expects to finish by June. |
| The Financial Ombudsman Service expects to resolve 245,000 PPI cases this year – three times the number it closed in 2012. In the first six months of 2012 consumers took 1,500 claims a day to the service, which deals with claims rejected by lenders. It finds in favour of consumers in about six out of 10 cases. | The Financial Ombudsman Service expects to resolve 245,000 PPI cases this year – three times the number it closed in 2012. In the first six months of 2012 consumers took 1,500 claims a day to the service, which deals with claims rejected by lenders. It finds in favour of consumers in about six out of 10 cases. |