Britain’s banks and PPI: RBS now raise PPI bill by £400million

The Royal Bank of Scotland is to increase their cover for payment protection insurance claims

14:19 03 November 2012

The Royal Bank of Scotland is the next banking giant to up their payment protection insurance bill. The group are reportedly raising their budget by £400million to cover for customer reclaims of alleged mis-sold PPI.

 

This is the latest action with regards to PPI that has affected many banks and financial institutions. As reported by the BBC, this will mean that RBS’ total for mis-sold PPI charges stands at £1.7billion.

 

The bank, who is mainly owned by the government, recently issued figures that showed they suffered a loss of £1.26billion before tax over a span of twelve weeks.

 

However, RBS Chief Executive Stephen Hester has reportedly said the bank was progressing. This comes following the firm’s recent computer glitch that affected many of its customers and resulted in RBS putting aside millions of pounds to cover for the damage caused.

 

Mr. Hester said: “The five year restructuring plan is now in its later stages with important work still to do, including an emphasis on dealing with reputational issues now that the bank's safety and soundness has advanced so well.”

 

News came on Wednesday that one of Britain’s other major banks, Lloyds Banking Group, revealed they were to add £1bn to their bill for PPI claims.

 

The total bill for Britain’s major banks with regards to PPI reclaims is understood to now be at £10.8billion, as stated by the BBC. According to Which? the total on the whole is at £12.7billion.