The Royal Bank of Scotland has set aside a further £3bn for mis sold compensation, including £465m for PPI redress. In a trading update, RBS said it’s apportioned an additional £1.9bn to cover claims relating to mortgage-backed securities as well as a £500m provision for interest rate swaps mis-selling. As of December 2013 RBS had spent £1.25 billion on interest rate swap redress.
RBS has now set aside £3.1bn to cover PPI refunds and said rather than declining as anticipated; claims in the final quarter of 2013 continued at previous rates. They expect PPI claims to continue for a longer period than thought.
Speaking about their redress bill, RBS chief executive Ross McEwan said: “Billions of pounds have been spent to resolve conduct and litigation issues in recent years, costs on this scale were not predicted by anyone when RBS was rescued in 2008.”
He added: “They come in addition to the costs of restructuring the bank’s bad assets and restoring its funding to prudent levels after the financial crisis.
UPDATE 3rd February 2014: Government-owned Lloyds Bank set aside a further £1.8bn today for PPI compensation payments, the set-aside comes two months before the bank is due to be returned to the private sector.
If you had a loan, credit card or mortgage through Lloyds, RBS or NatWest and think you may have been mis sold PPI – the money’s there, all you have to do is claim it.