A total of 2.3 million payment protection insurance (PPI) mis-selling claims – that’s how much UK financial services firm Barclays had received as of June 30 this year, and chair John McFarlane (pictured) is calling a good amount of Brits ‘fraudsters’ amid the whole PPI fiasco.
“The percentage of fraudulent claims is enormous,” the septuagenarian told The Mail on Sunday. “We have turned portions of Britain into fraudsters. It was in the government’s interests [for customers to receive PPI compensation]: consumer spending rose and it weakened the banks, so the government is complicit here in the decline of the City.”
In an interview with the publication, McFarlane stated: “It is almost inconceivable to think that £50 billion was mis-sold.”
Last month Barclays said it would continue to review the adequacy of its provision level for PPI redress. The London-headquartered investment bank acknowledged that it was possible the eventual cumulative provision outcome might differ from the company’s ‘best estimate’.
“As at June 30, 2018, Barclays had recognised cumulative provisions totalling £9.6 billion, £0.4 billion of which was recognised in Q118 against the cost of PPI redress and associated processing costs with utilisation of £8.2 billion, £0.6 billion of which was utilised in H118, leaving a residual provision of £1.4 billion,” noted Barclays when it announced its interim results in August.
Earlier this year Clydesdale Bank owner CYBG posted a £76 million loss for the six months to the end of March, much of which was blamed on PPI claims cost.
Meanwhile consumer advocates weren’t too pleased with McFarlane’s statements.
“I find this a very rich comment from a banker,” The Guardian quoted MoneySavingExpert.com founder Martin Lewis as saying. “Let’s be straight. £50 billion was mis-sold, systemically and often deliberately and yet no banker has been convicted of fraud. That’s where the outrage should be.”
The same report cited Which? consumer rights expert Adam French as describing McFarlane’s pronouncements as “a slap in the face” for legitimate claimants.
“Banks still have a long way to go to restore customers’ trust in the industry, and comments like this will not help at all,” said French.
