Banks' PPI mis-selling bill to hit £25bn

clock

The final cost to the country's banks for payment protection insurance (PPI) mis-selling is likely to be about £25bn, according to The Times.

It means they will have to pay double the £13bn already set aside to cover the scandal, according to calculations using the Financial Services Authority's (FSA's) monthly PPI pay out figures and historic selling data, the paper said. If banks are forced to refund every PPI fee they ever generated the bill could be as high as £40bn. The Bank of England is taking the worst case scenario suggestion seriously, the paper said, and uncertainty over PPI accounts for some of the £35bn black hole in bank balance sheets identified by the Bank.

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Should cash ISA limit become £4,000? Industry survey says no

Should cash ISA limit become £4,000? Industry survey says no

Just a quarter of respondents would support the change

Jen Frost
clock 07 May 2025 • 3 min read
LV= confirmed as Women in Financial Advice Awards 2025 headline sponsor

LV= confirmed as Women in Financial Advice Awards 2025 headline sponsor

Mutual backs WIFA 2025

Professional Adviser
clock 07 May 2025 • 1 min read
PA Asks: Should advice firms outsource protection?

PA Asks: Should advice firms outsource protection?

Plus, AI and regulation, corporate bonds, and your go-to garb

Professional Adviser
clock 07 May 2025 • 1 min read