HSBC has put by an additional £290m to fund payment protection insurance (PPI) compensation claims, taking its total provision to more than £745m.
The total public provision put aside for PPI claims by all the banks now totals over £9bn.
The five largest banks – HSBC, Royal Bank of Scotland (RBS), Barclays, Lloyds Bank Group and Santander – account for over £7.8bn of that total.
PPI payout pot
HSBC’s move comes just days after RBS and Lloyds Banking Group both put aside a further £125m and £375m for PPI claims respectively. So far, only £3bn of the £9bn pot has been paid out to customers claiming compensation.
Last month Which? and MoneySavingExpert.com hosted the PPI summit where major banks, credit card providers, regulators and the Financial Ombudsman Service pledged to take action to make the PPI claim process easier.
PPI summit success
The aim of the summit was to get all parties working together to help people get back the money they are owed and help restore trust in the PPI claims process. The following agreements were made to:
- standardise complaints procedures across financial services providers to make the process clearer and simpler for consumers with insight from Which? and MoneySavingExpert.com
- agree to work together to improve communication with customers to explain why you don’t need to use a claims management company (CMC)
- and for Moneysavingexpert.com, Which?, the financial services providers and the regulators to write to the justice secretary Ken Clarke to call for tougher regulation of CMCs.
Reclaim mis-sold PPI
If you think you may have been mis-sold PPI, use our checklist to find out if you could be eligible for compensation. If you decide to make a claim, try using our free online tool to generate your PPI complaint letter.
To date, Which? has helped more than 19,500 people claim for mis-sold PPI compensation. As the process to claim is straightforward, you can usually avoid paying an expensive CMC to do the work for you.
- Use our free PPI tool to issue your complaint
- Find out what happened at the PPI summit and join the debate
- Have you used a claims management company – share your experience