Spike in PPI Claims Forces Barclays to Review Provisions

PPI Reforms Help Lloyds Boost Revenues
May 1, 2014
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May 13, 2014
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Spike in PPI Claims Forces Barclays to Review Provisions

Barclays set aside £4.1 billion to address ongoing PPI claims that were filed against it. The bank initially felt that provision would be more than enough, but a recent surge shows that figure may be insufficient. Executives are debating whether or not to increase the provision.

Many Customers File Back Claims

An executive from Barclays attributes the new surge to the efforts of financial claims companies. They said that many people have recently filed claims for PPI policies that they purchased over a decade ago.

The unexpected increase in PPI claims was one of the factors that precipitated a decline in revenues. The most recent company report shows that Barclays revenue fell from £1.8 billion to £1.7 billion in the first quarter.

Barclays May Change Strategy

Barclays executives are planning for new changes in the coming future. They are holding a meeting next week to assess many of their operations in other parts of Europe.

However, the PPI issue may be a more immediate priority in the months to come. They are worried that the surge of PPI claims indicates that the problem is far from resolved. However, it is possible that many of these claims are bogus, which would mean that the bank wouldn’t face new costs. The new claims could still create a number of headaches for the company and force it to hire more claims handlers.

Issues With the New Claims

Barclays argues that many of the new claims may not be real. They said that about 40-50% of them have no record of ever purchasing PPI policies before. While they attribute the new claims to the marketing efforts of claims firms, it is too early to tell. They may still face a number of new claims in the near future.

“As a result of this inflow of complaints there remains a significant level of uncertainty regarding future complaint volumes, including assessing their legitimacy,” the report stated.

COVID-19 ANNOUNCEMENT

MARCH 23RD 2020

At this time we are continuing business as usual however our team will now largely be working from home. This limits our phone contact availability. Customer support remains available Monday to Friday but please email in to info@oraclelegal.com with your query. We aim to get back to you within 48 hours. On receipt of PPI refunds our fees remain payable and can be paid via our website www.oraclelegal.co.uk/payments/ or via BACS. We are also working on some other areas of potential claim for you in connection with your PPI and will be in touch shortly where applicable to present this to you.

IMPORTANT:The last day we can accept a new claim is Friday 23rd August – midday – to ensure the paperwork is properly processed and lodged with your lender before the cut-off time.