RBS hikes PPI compensation claims provision by £400 million
03 November 2012
The chief of bailed-out Royal Bank of Scotland (RBS), Stephen Hester confirmed it was hiking compensation fund for customers hit by payment protection insurance (PPI) scandal by £400 million to £1.7 billion.
According to the lender, even this was only a ''best guesstimate'' of their final bill.
Hester, however, dismissed calls for a compensation claim deadline as he refused to join rival Lloyds in condemning firms filing thousands of claims.
He said banks, including RBS, simply had to ''suck it up'' and recognise their mistakes of the past, adding, Lloyds could have greater cause for concern given their bill of £5.3 billion.
He told The Sun newspaper that industry had to take its medicine on this as also on other issues.
With the bank's move yesterday, the total provision for the entire industry was raised to a staggering £12 billion - making PPI the biggest financial mis-selling scandal of all time, overtaking even the pensions mis-selling in the 80s and 90s. The sheer size of the scandal led to all-round anger over the fact that not a single banker has been disciplined over PPI.