LONDON (Reuters) – Britain’s financial regulator said on Monday that banks and other lenders paid out 354 million pounds in September to compensate customers mis-sold loan insurance, the first monthly rise since April.
The payouts were an increase on the 313 million handed out in August and brought the total bill for the industry to 16.9 billion pounds. Banks expect the bill for the mis-selling of payment protection insurance (PPI) to continue rising and have set aside more than 23 billion pounds in total.
Lloyds Banking Group has set aside 11.3 billion, more than any other bank. Barclays , Royal Bank of Scotland and HSBC are also paying out billions of pounds in compensation. The policies were supposed to protect borrowers against sickness or redundancy but were often sold to those who would be ineligible to claim.
(Reporting by Matt Scuffham; Editing by Steve Slater)
UK banks' bill for loan insurance mis-selling rises in September
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