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Nearly 20,000 submitted PPI claims from failed firms

Figures released today have shown that the number of people making claims for mis-sold payment protection insurance (PPI) from firms which have gone bust, has almost doubled year-on-year.

Nearly 20,000 people submitted claims in 2012, compared to more than 10,000 in the previous year Credit: Owen Humphreys/PA Wire

According to the Financial Services Compensation Scheme (FSCS), nearly 20,000 people submitted claims in 2012, compared to more than 10,000 in the previous year.

The findings come after the Financial Ombudsman Service (FOS), reported that it handled 11,000 complaints a week about PPI mis-selling, in the last three months of 2012.

The service resolves disputes between people and financial services firms,

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  1. Laura Kuenssberg

FSA considers banks' time limit request for PPI claims

The Financial Services Authority has said they will consider the request from banks to place a time limit on Payment Protection Insurance (PPI) claims:

Our key priority is to ensure consumers are protected, so the FSA Board would need to be convinced that any proposals would be in the interests of consumers.

We have had initial discussions and are prepared to consider the merits of this and other options.

A key consideration will be the potential to get compensation to more consumers, more quickly.

However, no changes to existing FSA, or future Financial Conduct Authority (FCA), rules would take place without a full public consultation.

– FSA

They do not sound convinced!

PPI scandal costs 'Big Four' lenders over £10 billion

The Royal Bank of Scotland's announcement that mis-sold payment protection insurance (PPI) claims have cost the taxpayer-backed bank £1.7 billion has taken the total bill for Britain's "Big Four" lenders to more than £10 billion.

The PPI scandal is one of the worst to hit the UK's big four lenders Credit: Gareth Fuller/PA Wire

Yesterday, Lloyds Banking Group set aside another £1 billion to cover PPI claims, bringing the total to £5.3 billion, while Barclays announced an additional £700 million, giving it a total of £2 billion.

HSBC is forecast to post a more modest provision next week.

Hester: RBS working 'very hard to stand still'

Stephen Hester, RBS Group chief executive, said the Royal Bank of Scotland is "having to work very hard to stand still", adding, "We aspire to achieve much more".

Mr Hester said in the bank's interim management statement:

The extraordinary challenges which RBS faced following the financial crisis are being worked through successfully.

Beneath these headlines our people have been working hard at supporting our customers and rebuilding the capabilities of the core business, the future RBS that is emerging from our work.

In doing this we face the same strong economic and regulatory challenges as other banks and are having to work very hard to stand still in the face of these challenges.

We aspire to achieve much more; in short, to be running a really good RBS.

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PPI scandal costs Royal Bank of Scotland £1.7 billion

The Royal Bank of Scotland raised its PPI bill to £1.7 billion Credit: Johnny Green/PA Wire

The Royal Bank of Scotland (RBS) has revealed an additional £400 million charge to cover the cost of mis-sold payment protection insurance (PPI) claims, bringing the total bill to £1.7 billion.

RBS also said the cost of its recent IT glitch had risen by £50 million to £175 million.

FSA vows to get 'a fair deal for customers'

Today Martin Wheatley, of the Financial Services Authority, is vowing to get a fair deal for banking customers by eliminating incentive schemes, which the FSA believes can lead to mis-selling.

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