National Bank of Australia (NAB)’s banks Clydesdale and Yorkshire have added an extra £350 million to refund its PPI-mis-sold customers.
According to CYBG, it saw its figures increase by 59,000. In a statement to investors, it said the FCA’s advertising campaign, increased coverage from the media, and online publications discussing payment protection insurance, has helped contribute to the higher claims figures.
CYBG’s shares had dropped by 6% after its announcement of additional refund allocation. It was seen as a huge profit setback by investors. The two banks said it acknowledges their refund pool’s possible increase until 2019, the PPI claims deadline date.
Its parent bank NAB will handle the £148 million provision. The two banks will be left to handle the £202 million pre-tax hit on its profits. Most financial analysts believe that NAB’s lacking support is becoming a big problem for the Glasgow-based banking system.
Collectively, the UK’s PPI scandal has reached a sum of £40 billion in refunds with £30 billion returned to consumers. The Financial Conduct Authority believes the scandal will continue to inflate the refund pool if it does not impose a deadline.
However, the claims process, even until its impending deadline, is still flawed. According to St John Building’s barristers, Plevin claimants are not receiving their refunds in full, with most customers receiving only 20% of their paid amount.