Clydesdale Bank states PPI has not run its courseAug 28, 2017
More news on banks reviewing their provisions for Payment Protection Insurance, indicating there may be more increases for mis-sold PPI repayments…
(The Herald, Scotland)- This week Clydesdale Bank warned that further provisions may be needed as PPI has not yet run its course. The National Australia Bank (NAB), who also own Yorkshire Bank, claimed there is a lot of work to be done before getting to the end of the Payment Protection Insurance “journey”.
As the bank announced it has set aside a further £115 million relating to potential customer redress for complex loans, Chief executive of Clydesdale Bank David Thorburn conceded;
“PPI has not run its course yet. We have a lot of work to do still before we get to the end of that journey".
The bank has also signalled that similar to the rest of the industry, they are continuing to see an unpredicted increase in PPI (Payment Protection Insurance) claims. Although the bank are yet to raise any additional provisions from the £386 million suggested in October.
The bank said;
“There remains a wide range of uncertain factors relevant to determining the total costs associated with conduct related matters and there is risk that additional provisions will be required”
Mr Thorburn also acknowledged that there is a need for trust to be rebuilt again between banks and customers, adding;
“For Clydesdale Bank, it’s really important competitively that it has to be a better service experience (than our competitors) in all respects to guarantee us a sustainable future.”
The NAB UK business group which also includes Yorkshire Bank has seen major restructuring across the past two years that saw 1,400 people leave. Chief Executive Mr Thorburn has indicated that the bulk of the upheaval was now in the past.