Banks 'in denial' over PPI, say Which
Which? have criticised banks over the PPI scandal, saying that they have been 'in denial' about the true costs needed to redress customers.There has now been over £12.3bn set aside by the banks, making PPI the biggest mis-selling scandal of all time, but provisions could still run out in a matter of months.
Lloyds have today announced a further £1 billion provision for repaying mis-sold PPI, taking the total amount set aside by the banks to a whopping £12.3 billion.
The statement from Which? claims that, if current pay-out rates continue, PPI provisions would run out by the end of 2012, and even Lloyd's increased provisions would only last until March next year.
Which? chief executive Peter Vicary-Smith said:
“The banks have been in denial about the true scale of this scandal. Their piecemeal approach to topping up provisions is an inadequate response to what is now the biggest financial mis- selling scandal of all time.
“The banks must now come clean about how many more complaints they’re expecting, publish monthly updates on the amounts that have been paid back, and claw back bonuses from executives who presided over £12.3bn mis-selling travesty.
“Consumers are continually being let down by banks. We’re campaigning for big change so that banks work for customers, not bankers and to protect the public from further mis-selling scandals.”