“PPI Claims to Decline, But Banks Still Putting Millions Aside,” Says Asons
Some banks are still reeling from the impact of mis-sold Payment Protection Insurance (PPI) claims, amidst allegations of manipulation and further corruption.
After the recession, some banks are still reeling from the impact of mis-sold Payment Protection Insurance (PPI) claims, amidst allegations of manipulation and further corruption. This news comes hot on the heels of financial data which indicates that the UK may finally be out of the depths of recession.
According to statistics, the Royal Bank of Scotland (RBS) will be setting aside an additional £400m to cover mis-sold PPI claims, taking the total compensation bill for the biggest British lenders to over £10bn. Bank executives expect the pace of PPI claims to slow down in the coming months, but analysts now believe that the total compensation bill could be as high as £15bn.
PPI claims are not the only hit to be revealed by RBS however, as they look set to announce the total losses resulting from their catastrophic IT break down earlier this year, and there is also news that they will be facing a major penalty for Libor manipulation.
Mr Imran Akram, Practice Manager at Asons Solicitors stated that:
“The banks have a huge influence on our economy and indirectly, on our everyday lives. Abusing this power is simply unacceptable and wherever possible, it should be pursued to the fullest extent of the law. Unfortunately, RBS is now 81% UK taxpayer owned, and so the bank’s problems become our problems. Where their previous, poor behaviour has financial consequences, it’s the taxpayer that ultimately suffers”.
Reports state that the additional £400 million set aside for PPI is just an effort to ’get ahead’ of the problem.Whilst the public are well within their rights to make a PPI claim, the costs of compensation payouts are ultimately slowing the efforts of banks to return to profitability. The longer this takes, the later it will be before the government sees any benefit in having bailed out the banks to begin with.
“If the analysts’ predictions are correct, we’ll see PPI Claims peter out over the coming months; but as many economists will tell you, one of the biggest driving forces behind economic growth is consumer spending. So if you’re entitled to make a PPI claim, you should speak to a legal advisor quickly, so that you can secure your compensation before the banks stop setting money aside” says Mr Akram.
RBS has already said that it may need to put additional funds aside in future to cover PPI claims. Currently they are focussed upon restructuring the business to make it more competitive after financial results showed a £3.4 billion loss for this year, compared to a £2 billion operating profit for the same period in 2011.
If you were sold PPI as part of your loan package, or if you were not made aware of your right to shop around, you may be eligible to make a PPI claim. To find out how, speak to Asons Solicitors today, you can visit their website, or you can contact their PPI claims helpline on 0844 850 1062.
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About Asons Solicitors:
Asons Solicitors is a Bolton-based law practice that specialises in personal injury and industrial disease claims. Founded by brothers Imran Akram and Kamran Akram, Asons Solicitors has developed to become a young and dynamic law firm that delivers practical solutions to clients in times of difficulty. Their continued focus on their staff has seen them awarded with the Investors in People “Gold Award”; which is reflected in the professional and personable approach they take in working with clients. They strive to grow and to develop, and their supportiveness and attention to detail ensures that their clients use them time and again.
- Contact Information
- Imran Akram
- Managing Director
- Asons Solicitors
- (44) 0844 850 1062
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