PPI: ‘Banks should do all they can to win trust’

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Lloyds Banking Group’s decision to set aside another £1.5 billion to deal with the Payment Protection Insurance (PPI) mis-selling scandal takes the total spent by banks to £15.6bn.

It is comfortably the biggest mis-selling scandal of all time ahead of pensions (£11.8bn) and mortgage endowments (£2.7bn).

Richard Lloyd, executive director of the Which? consumer magazine, said: “Lloyds’ latest increase in provision for PPI compensation takes the total amount set aside by the banks to a whopping £15bn. After a year of scandals the banks should be doing all they can to win back badly damaged consumer trust, and help people entitled to a legitimate refund to get their money back quickly and without any hassle.

“The banks should publish updates on the amount of compensation they’ve paid back, and claw back bonuses from executives who presided over the mis-selling. The public will be rightly outraged that bankers are getting huge bonuses despite their failings.

“Justifiable levels of pay and bonuses, individual accountability, and properly enforced professional standards are urgently needed to change the culture of banking. 2013 must be the year that we finally see big changes in banking, with banks that work for customers, not bankers.”