RBS facing almost £1bn in further payouts for PPI mis-selling
Bank making provisions (pic: Terry Murden)
Royal Bank of Scotland is setting aside almost £1 billion in further compensation to meet a ‘significantly’ higher surge in late claims for mis-sold payment protection insurance (PPI).
The bank said it will make a further provision of between £600 million and £900m in its third quarter figures. It said the processing of claims is ongoing and the ultimate provision recognised could be above or below this range.
RBS has been implementing the Financial Conduct Authority’s policy statement for handling complaints about the mis-selling of PPI since 2011. The bank said it has RBS made provisions totalling £5.3bn for PPI claims of which £4.9bn had been paid out.
In a statement today it said the volume of claims received last month was “significantly higher than expected”, with a further spike in the final days leading up to the deadline of 29 August.