UK banks create 20,000 jobs to service mis-selling claims

Big banks in the UK have created around 20,000 jobs, to service payment protection insurance (PPI) and interest-rate hedging claims, reveals employment group Manpower.

Compensation claims that had been haunting the biggest banks across the UK had led to a massive recruitment drive. The figure does not include the posts by  various claims management companies, which aid customers seeking compensation.

Mark Cahill, UK managing director, ManpowerGroup says he is hopeful of the employment drive continuing till beyond summer and although 600,000 new jobs were created in the last year alone, the UK employment phenomenon was far from coming to an end.

The UK banks, specifically Barclays and Lloyds, had managed to put together the most expensive financial scandal in British banking history, with the Financial Services Authority revealing that the UK banks had paid nearly £9 billion over the past two years to compensate customers who were mis-sold PPI.

The Financial Ombudsman Service (FOS) earlier pointed out that during the last six months of 2012 new complaints were up by 110 per cent hitting a record total of 283,251.

According to the FOS website, the PPI complaints scaled new heights in the second half of the year with almost three-fourths of the total complaints registered under PPI claims.