UK’s high-street bank sector allocate larger fiscal reserves for their payment protection insurance refund allocations. According to analysts, the bank industry is still struggling with its past misdeeds. All the banks have allocated hundreds of millions for PPI, which they predict would be their last allocation before the 2019 PPI deadline.
Before this arrives, RBS has added £396m for litigation costs and misconduct charges from the US Federal Housing Finance Agency. The bank’s charges come from its mis-selling of mortgage-backed securities in 2005, which proved to be toxic according to further regulator investigations.
Barclays had set aside £700m for its PPI refund package for the first half of 2017. The bank said its PPI costs, along with other profit losses, were necessary costs for its planned reforms.
Lloyds has allocated almost £1bn to provide for all its troubles. However, the bank is successfully re-integrating itself into the UK private sector.
The UK’s PPI claims crisis, from 2009, had accumulated more than £38bn in the last decade. The FCA had announced an August 29, 2019 deadline for all PPI complaints. According to FCA CEO Andrew Bailey, the deadline will urge consumers to make a claim instead of putting it off.