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.

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PPI scandal costs RBS £1.7bn

Royal Bank of Scotland today 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.