Clydesdale and Yorkshire Allocate £350m More For Mis-Sold PPI

May 14, 2018
by admin in PPI News

Clydesdale and Yorkshire Banking Group (CYBG) saw its PPI figures increase to about 59,000 in the first half of the year. The National Australia Bank (NAB)-backed financial group is struggling to cope with its PPI repayments and has lost shares in the market.

Stock figures show the Glasgow financial institution losing about 6% of its shares after it told investors it needs to deal with “legacy PPI costs.” The huge £350m addition would mean a huge dent on its profit.

CYBG said its PPI figures increased after “heightened media coverage, the FCA advertising campaign, and increased claims management company activities.”

The bank acknowledged its PPI pool to increase in the coming years until 2019, the appointed date of the FCA’s claims deadline.

NAB will deal with £148m, but CYBG still takes a £202m pre-tax charge hit on its profits for the first half of 2018. Bank analysts claim NAB’s insufficient provisions is a “bit of a disaster” for the Glasgow-based financial institution.

PPI is the UK’s biggest financial scandal with almost every UK bank selling insurance policies to ineligible consumers. It has since reached the biggest refund pot of £40 million.

Recently, St John Building’s commercial barristers claim the FCA’s processes limit the actual figure Plevin claimants receive. Instead of the 100% PPI refund, the Watchdog’s procedures allow banks to pay as much as 20% only to PPI mis-selling victims.