Banks

Taxpayer-backed Lloyds Banking Group has become the latest bank to announce a hit to its financial performance due to compensation payouts for mis-sold payment protection insurance (PPI).

Barclays reported a 33% drop in half-year profits to £2.6 billion after it took a £1 billion hit to cover compensation for customers who were mis-sold payment protection insurance.

The UK arm of Santander said today it had set aside more than half a billion pounds to cover the costs of mis-selling payment protection insurance (PPI) to its customers.

HS

Chancellor George Osborne is today expected to give approval to plans to force banks to erect a protective firewall between their retail and investment arms, in a bid to prevent a repeat of the financial crisis of 2008.

Lloyds Banking Group has said "sorry" for flogging worthless payment protection insurance (PPI) policies and promised a catalogue of measures to provide compensation for victims, in yet another sign of capitulation by banks.

MoneySavingExpert.com today urges the Government to take stronger action to stop claims management firms cold-calling consumers with false promises over mis-sold payment protection insurance (PPI).

A record number of consumers complained about mis-sold payment protection insurance (PPI) during the past financial year, despite the banks' attempt to block reclaiming.