Daily Mail - 01.08.2019

(Jacob Rumans) #1
Page 14

That’s how many PPI claims

Lloyds is getting every week

as August 29 deadline looms

NEARLY 200,000 customers

a week are bombarding
Britain’s largest bank with

PPI compensation requests

ahead of its claims deadline.
With only a month remaining,
Lloyds said that it is being
contacted by 190,000 people a
week – 120,000 above average.
Other banks are also thought to
have been inundated with requests
amid a scramble for pay-outs.
Lloyds set aside another £550mil-
lion to pay victims of the country’s
biggest ever banking scandal in the
second quarter of this year – mean-
ing the debacle has now cost it a
staggering £20billion.
For the industry, the PPI bill
stands at £35.7billion, enough
to pay Britain’s entire annual
public order and safety
budget. Victims of the disas-
ter must claim by August 29.
Lloyds – which is Britain’s
biggest High Street bank
with 22million current
account customers – said the
surge had taken it by sur-
prise, pushing down profits.
Around 10 per cent of its
190,000 weekly requests for
information are expected to
lead to official claims.
Other major names are
expected to set aside mil-
lions to deal with the cut-off
rush. Many claims will be
genuine as the PPI scandal
saddled huge numbers with
unnecessary bills. But other
customers appear to be try-
ing their luck, egged on by
unscrupulous claims man-
agement firms.
Martyn James, of consumer

rights group Resolver, said:
‘PPI was the biggest finan-
cial mis-selling scandal of all
time. It won’t just be Lloyds

  • expect further big-money
    announcements from the
    other banking groups too.
    ‘Even though these num-
    bers are extraordinary, there
    are still going to be millions
    of people who are owed

money not put in a claim.’ As
many as 64million people
were sold PPI policies, mostly
between 1990 and 2010.
The product was designed
to cover repayments on loans
and credit cards if a borrower
was made redundant or una-
ble to work. Many customers

had no idea what they were
buying or how much it cost.
Many borrowers, for example
those who were self-
employed, could not even
use the product to claim.
Banks quickly realised that
PPI was a huge money-spin-
ner and set their staff mas-
sive sales targets. When the
extent of the scandal became
clear, they fought in the
courts to avoid offering com-
pensation but lost a land-
mark case in 2011 – opening
the floodgates.
In 2017, the Financial Con-
duct Authority watchdog
imposed the August cut-off
date for claims to try and
bring the saga to a close. At
Lloyds, the PPI charge has
driven profits down to
£2.9billion for the first six
months of 2019 – 7 per cent
lower than 2018. George Cul-

mer, chief financial officer,
said: ‘We were always in
favour of a time bar, partly
because we knew it would
encourage customers to
make contact. The speed at
which that’s happening has
caught us by surprise.’
Mr Culmer added that the
lender may yet have to set
aside more money, although
Lloyds is hopeful its costs
will be covered.
Lloyds estimates it has sold
16million PPI policies since
2000, including both legiti-
mate and toxic ones, adding
that just 54 per cent of these
have since been dealt with.
Barclays, Royal Bank of
Scotland and HSBC all
reveal their results in days.
Ian Gordon, at Investec, said
that if their experiences
match Lloyds’ the PPI bill
could rise by £700million.

15-year fixed rate home

loan back after a decade

STRICTLY Come Dancing has
revealed the first three contest-
ants joining this year’s line-up.
Former England goalkeeper
David James, EastEnders actress
Emma Barton and comedian
Chris Ramsey will star in the 17th
series of the hit BBC show.
James, 48, who was capped 53
times, will have his eye on the
glitterball after lifting trophies
at Liverpool and Portsmouth
during his footballing career.
Miss Barton, 42, who plays
Honey Mitchell in the BBC soap,
will put her stage experience to
good use having starred as
Roxie Hart in musical Chicago
and Dolly in the National Thea-
tre’s One Man, Two Guvnors.
The self-confessed Strictly fan
said: ‘I still can’t believe this is
happening. I’m very much a
dance around your handbag

kinda girl.’ The lesser-known
Ramsey, 32, will be recognisable
to comedy buffs who tune in to
Comedy Central UK to watch his
Chris Ramsey Show.
‘I’m looking forward to
making a fool of myself in front
of millions,’ he said.

Smiles: Comic Chris Ramsey

Fast feet: Ex-England goalkeeper David James



Unveiled, new stars

making the Strictly

glitterball their goal

By James Burton
Chief City Correspondent

Razzle-dazzle: EastEnders star Emma Barton

‘Scandal so far

cost bank £20bn’

HOMEBUYERS can now take out a 15-year
fixed rate mortgage for the first time in a
decade. High street bank Virgin Money
has revealed it will allow borrowers to
protect themselves against rising interest
rates until 2034.
Borrowers with a 35 per cent deposit
who sign up will be locked into an ultra-
cheap rate of just 2.55 per cent. This is just
0.26 percentage points more expensive
than the cheapest ten-year deal and 1.

percentage points higher than the top
five-year fix.
The last time borrowers could sign up to
a 15-year fixed deal was in 2009 when
Britannia Building Society offered a rate
of 6.49 per cent, according to analysts

Moneyfacts. Experts said the deal could
appeal to homeowners in their ‘forever
home’ looking to protect their family
finances against rising interest rates.
Economists and the financial markets
are at loggerheads over whether the

Bank of England will move to raise or cut
interest rates. Analysts at economic fore-
casting firm EY Item Club predict the Bank
of England base rate will remain at 0.
per cent for the rest of the year and rise
to 1 per cent around mid-2020. Traders, on
the other hand, think there is a 50 per
cent chance the base rate will fall before
the end of the year.
Borrowers who want to exit the 15-year
Virgin Money deal in the first five years
will be charged a penalty of 8 per cent of
their outstanding balance.

By Samantha Partington
Money Mail Reporter

By Eleanor Sharples
TV and Radio Reporter

(^) Daily Mail, Thursday, August 1, 2019

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