Clydesdale and Yorkshire Banks Set Aside £403 Million for PPI Refunds

November 7, 2017
by admin in PPI News

The Clydesdale and Yorkshire Banking Group (CYBG) had set aside £403 million to provide refunds to consumers mis-sold payment protection insurance from the 90s to the early millennium. The National Australia Bank is now facing £671 million earmarked for the financial scandal. CYBG will only shoulder 9.7 per cent of the allocation mentioned.

No other bank aside from CYBG declared additional funding for their compensation package. According to Lloyds, Barclays, and RBS, they are “finished” in providing funds. However, RBS is still facing massive fines from US regulators and its Department of Justice pertaining to its toxic mortgages sold in 2008 before the financial crisis.

The CYBG group attributes the growth of their insurance scandal refund package due to the increased awareness caused by claims management company campaigns and the FCA’s ad campaign.

The city watchdog reports that PPI complaints have increased during the first six months of 2017 by 24% compared to the previous year. Figures show it has reached 1.1 million compared to reaching an approximate 900,000 complaints in the previous year.

The FCA also promised that in line with its PPI ad campaign, it would regulate banks’ efforts to simplify its claims process to the benefit of consumers.