PPI claims push bank employment figures up

STAFF hired by banks to deal with the massive rise in payment protection insurance (PPI) compensation claims shot up in the first three months of 2012, a survey out today reveals.

A total of 60 per cent of the high street banks’ demand for claims handlers were to work in PPI compensation scheme departments, specialist financial services recruitment firm BrightPool said.

And nearly half – 46 per cent – of the demand for bank project managers was to work in departments dealing with redress for such mis-selling.

Britain’s high street banks made major provisions last year against compensation for PPI mis-selling, including £3.2 billion at Lloyds Banking Group, which owns Bank of Scotland, and about £850 million at Royal Bank of Scotland.

Regulators ruled that millions of people were mis-sold the product, which was meant to cover personal loan repayments if someone lost their job through illness or redundancy.

Angela Hickmore, managing director of BrightPool, said: “Financial institutions have learnt from the difficulties faced at the time of the endowment [mis-selling] scandals and this time are reacting quickly to ensure they can manage the high volumes of [PPI] claims expected for the rest of the year.”