Barclays are to up mis-selling amount by £1billion

Barclays are to increase mis-selling funds; including monies for payment protection insurance

15:11 05 February 2013

Barclays bank is to add £1billion to the pot in order to accommodate its customers for mis-selling. The firm will add £400million to funds to cover compensation costs for small businesses, as well as £600million for payment protection insurance (PPI),it has emerged.

The £1billion amount will look to cover rates swap and PPI claims, which will mean Barclays have allotted a total of £3.45million for mis-selling, according to reports.

For PPI - which relates to an individual being covered for payments if they are unable to meet them due to ill health or sudden job loss – the bank is to increase its monies by £600million, which will mean the total for its payment protection insurance fund is thought to be at least £2billion.

This follows Barclays Chief Executive Antony Jenkins, who replaced Bob Diamond last year, announcing last week that he would not accept his bonus.

He said: “I think it only right that I bear an appropriate degree of accountability for those matters and I have concluded that it would be wrong for me to receive a bonus for 2012 given those circumstances.”

Other news surrounding the bank includes Barclays Finance Director Chris Lucas stating he was to retire from his post. Mr. Lucas also waived his bonus last year.

Barclays were fined £290million in the summer of 2012 with regards to the Libor-rigging scandal, which relates to investigations being carried out over interest rates being manipulated.

The PPI scandal relates to many customers who are claiming they have been mis-sold payment protection insurance in the past.