High street banks HSBC and Royal Bank of Scotland (RBS) are the latest lenders to increase its payment protection allocation funds.
HSBC have confirmed it made a £290m provision for PPI claims in the first quarter thus taking its total redress to £745m while RBS has set aside a further £125m. The nationalised lender has now earmarked £1.2bn to cover the cost of compensation for mis sold payment protection insurance policies.
The involvement of claims management companies in the recovery of mis sold PPI policies is reported to be an influential contributor to lenders topping up their claim funds.
Barclays and Lloyds were the first lenders to raise its PPI bill; both lenders requiring a further £300,000 to cover PPI claims, taking their total to £1.3bn and £3.5bn respectively.