Death of the banking salesmen?

Martin Wheatley, of the Financial Services Authority, is to call time on the era where banks made pots of cash from commission.

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FSA considers banks' time limit request for PPI claims

by - Former Business Editor

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!

Read more about PPI misselling here.

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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
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.

PPI scandal costs Royal Bank of Scotland £1.7 billion

File photo of a woman walking past the headquarters of the Royal Bank of Scotland in the City of London
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.

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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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MW: our report found most incentive schemes are likely to drive people to mis-sell in order to receive a bonus #fairdealforconsumers

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MW: one of the worst examples saw a system where the first 21 staff to reach a sales target earned a £10,000 bonus #fairdealforconsumers

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MW: we are now starting a programme of work to reduce these risks, which the FCA will take forward #fairdealforconsumers

Lloyds reveals lower-than-expected profits

Women use a Lloyds ATM machine
Women use a Lloyds ATM machine Credit: Reuters

Taxpayer-backed Lloyds Banking Group has revealed lower-than-expected profits after it took an additional £375 million hit to cover payment protection insurance (PPI) claims.

The 40 per cent state-owned bank has now set aside nearly £3.8 billion to deal with PPI compensation after a recent increase in the volume of claims.

Lloyds, which warned that the final cost of the PPI mis-selling scandal may change, revealed pre-tax profits of £288 million for the three months to March 31, compared with £316 million in the previous quarter and City expectations of £500 million.

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