Britain’s largest banks will add billions to their bill for Payment Protection Insurance in next few weeks.
Executives from the ‘big four’ banks are closing in on a deal to top-up their provisions which will take the total into the region of about £2bn, this will be disclosed as part of the third-quarter results.
The big four banks – Barclays, HSBC, Lloyds and RBS have already put more than £30bn aside for compensating victims of mis-selling and the associated admin costs.
Sources close to the banks have confirmed that they would need to add to their existing PPI provisions. This news comes as the City watchdog is about to confirm a 2019 cut-off date that will bring about an end to the biggest consumer mis-selling ever seen in Britain.
The big banks had been hoping to have already set aside enough funds for PPI mis-selling but have been forced to change their strategy as the deadline will come a year later than most had anticipated.
Lloyds, who were responsible for over half of all mis-sold PPI policies, has already been forced to fork out more than £16bn over the issue.
Lloyds will be followed by Barclays, RBS and HSBC, each of which has racked up multibillion pound bills during the last five years.