Barclays sets aside £1bn for PPI claims
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Barclays has revealed today that it will not appeal the High Court’s ruling on payment protection insurance and has set aside £1bn for customer redress.
The news comes as the British Bankers Association today reveals that it will also not appeal the decision made on April 20 2011.
Barclays has also agreed with the Financial Services Authority that it will now begin to process all on-hold and any new complaints from customers about PPI policies that they hold.
Bob Diamond, chief executive of Barclays, says: “We have taken this decision because it is in the best interests of our customers, as well as for Barclays and its shareholders; creating certainty, particularly regarding past issues, is of benefit to all parties.
“We don’t always get things right for our customers; when we get them wrong, we apologise and put them right. That’s our commitment to our customers, and it applies to the way in which we will deal with PPI complaints.
“While important aspects of the handling of PPI complaints, and therefore the cost of doing so, are not yet certain, Barclays is taking a provision to cover the cost of future redress and administration of £1bn in the second quarter 2011.”
The BBA was given until May 10 to appeal the decision.
But in a statement today, it says: “In the interest of providing certainty for their customers, the banks and the BBA have decided that they do not intend to appeal.
“We continue to believe that there are matters of important principle which we will be taking forward in other ways with the authorities.”
Lloyds Banking Group revealed last week that it had set aside £3.2bn to deal with PPI complaints.
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