Barclays is facing a £1.6bn lawsuit in one of the biggest claims for payment protection insurance (PPI) mis-selling, it emerged today.
As the cost for rigging currency markets keeps rising, British banks can take cold comfort the costs are dwarfed by wrongfully sold insurance.
Bloomberg's Manus Cranny reports that Barclays has said it will set aside an additional $1.6bn to cover misselling of payment-protection insurance and other products.
Barclays will announce its full year results on 12 February 2013, which will contain the following additional provisions relating to IRHP and PPI:
The mounting bill U.K. banks face for payment protection insurance (PPI) mis-selling is now around £12.3bn ($19.8bn), making it the costliest bank mis-selling scandal ever in the UK, according to consumer group Which?.
Barclays has experienced higher than previously anticipated levels of Payment Protection Insurance ('PPI') claim volumes since the end of the first half, and has therefore determined that it is appropriate to provide a further $1.12bn as at 30 September 2012.