Clydesdale Bank Adds Further £450m To PPI Bill

May 11, 2016
by admin in PPI News

About to pull out its UK businesses Clydesdale and Yorkshire Bank, National Bank of Australia faces a higher bill for PPI from Clydesdale with an additional £450m.

Because of its pullout and spin-off for Clydesdale and Yorkshire Bank, NAB faced a half-year profit loss at £2.1 billion.

Earlier the previous year, Clydesdale had also added about £500m for its PPI bill. This came after NAB’s decision to pull out of the United Kingdom.

NAB will commit about £1.7bn more to resolve its conduct indemnity deed. So far, it had resolved about £689m. About £300m out of £2.1bn for PPI had been repaid to consumers.

Glasgow’s CYBG claims the bank is performing well and its new PPI allocation is due to the implications of the Plevin v. Paragon Personal Finance case.

Clydesdale and NAB in general have about £2b set aside for PPI. The amount is relatively low. Lloyds Banking Group, the biggest PPI mis-seller in the country, owes about £16b to the entire United Kingdom.

The UK total for mis-sold PPI is at £32b. About £11bn is yet to reach consumers as compound PPI policies with fluctuating interest rates have yet to be determined. These policies, sold in the 90s alongside loans and credit cards, also have an 8 per cent interest rate to account for inflation.