Barclays has earmarked an additional £700 million to meet payment protection insurance (PPI) compensation claims, it has been announced.Read the full story ›
The Public Accounts Committee said a 'failure of regulation' led to firms making up to £5 billion in PPI payouts.Read the full story ›
A PPI claims firm that sent more than 1.3m spam texts in just over two months has been fined £80,000.Read the full story ›
State-backed Lloyds Banking Group has set aside a further £1.4 billion to take its bill for the mis-selling of payment protection insurance (PPI) to £13.4 billion.
Despite announcing a 38% rise in pre-tax profits for the first half of the year, Lloyds said it was "disappointed" to confirm the extra PPI scandal provision.
Pre-tax profits rose for the first half of 2015 to £1.19 billion, providing a 0.75p dividend for shareholders that amounts to £535 million.
Today's results demonstrate the strong progress we have made in the first half of the year.
We are disappointed to announce further provisions today, but we do so from a position of financial and capital strength.
Fees and charges triggered by mis-sold PPI premiums should be paid back, the Financial Ombudsman Service said after a BBC investigation claimed customers could have possibly been under-compensated by £1 billion.
Principal Ombudsman Caroline Wayman said: "If a fee is the result of the mis-sold PPI it should be given back, and if it's not included that would be a mistake."
She also recommended that credit card customers who fear their fees and charges were left out of compensation calculations approach their banks to discover what happened.
Victims of the payment protection insurance mis-selling scandal could have potentially been under-compensated by an estimated £1 billion, a BBC News investigation has found.
Customers who may possibly have been affected had PPI on credit cards issued by Lloyds Banking Group, Barclays, MBNA and Capital One, the BBC said. All these banks claim to make every effort to pay the correct amount of compensation.
The estimated shortfall uncovered by the BBC arose because some fees and charges that were triggered by mis-sold PPI policies have been left out of compensation calculations, which also involve adding interest, thereby dramatically reducing the amounts some customers would have otherwise received.
Claims management companies should be banned from making "nuisance calls" about mis-sold PPI, after it emerged they had probably pocketed £5bn from compensation claims.
Citizens Advice Bureu (CAB) chief executive, Gillian Guy, explained:
By banks originally dragging their feet and providing inadequate redress, claims management companies seized an opportunity to take up to 25% of people's compensation for admin work that consumers can do themselves for free.
Some claims management companies operate well below the standards that are expected and sometimes outside of the rules.
The regulator needs to quickly revoke the licences of firms that are not up to scratch.
We'd like to see a ban on cold calling by claims companies which would spare people from nuisance calls and protect consumers from predatory firms.
Some 28% of claimants who pursued PPI compensation felt under pressure by their representatives to do so, research has found.
Consumer research carried out by The Citizens Advice Bureau (CAB) found almost a third of those who used claim management firms to pursue their compensation felt under pressure to continue with their claim.
This came after claims management firms were estimated to have made £5bn off consumer claims for the mis-sold insurance since the compensation drive began.
CAB also found a lack of understanding among consumers about how best to claim compensation.
Nearly two-fifths (39%) of people who had used a claim firm said they were not aware they could have made the claim themselves, according to a survey of more than 5,000 Britons.
It is not over - the biggest consumer scandal continues to cost more and more for the banks.
Lloyds have revealed this morning that they are paying out another £750 million in compensation which doesn't just push them into a loss, when their books are looking better, but takes just their bill for the mess to over £8 billion.
That is a staggering amount of money - and a reminder that mistakes from years ago continue to hamper the banks' full recovery.
Complaints about financial firms have surged to a record high as a huge insurance mis-selling scandal continues to weigh on the industry.
The Financial Ombudsman Service (FOS), which settles disputes between consumers and financial firms, said new complaints rose 15% to 327,035 between January and June on the prior six months.
That was driven by a 26% hike in complaints about payment protection insurance (PPI), where people were charged for loan insurance which they did not need or could not claim on.
The ombudsman said some lenders continue to drag their heels on repaying mis-sold PPI, causing "long waits and unnecessary delays" for customers.