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see very poor 2019 -Trust Pilot Reviews for Financial Ombudsman Service


PPI costs account for over half of all conduct and litigation charges at UK banks - Costs from the mis-selling of payment protection insurance (PPI) has accounted for more than half of all litigation and conduct charges faced by Britain’s biggest banks in recent years.

Moody’s Investors Service has said that PPI was the largest single source of conduct and litigation charges from 2011 to the first half of 2019, as the country’s five largest banks took a balance sheet hit from a long-running PPI scandal.

A last-minute surge in claims ahead of the deadline forced large UK lenders to set aside fresh provisions.

Last week Lloyds Banking Group and Barclays revealed that they were facing PPI costs of up to £1.8bn and £1.6bn respectively following a bigger-than-expected stampede of complaints.

Substantial conduct and litigation provisions have weighed on the profitability of the large UK banks relative to their large European peers, Moody’s said today, piling on pressure amid Brexit uncertainty, low interest rates and shrinking mortgage interest margins.

Lloyds Banking Group was the most affected, with PPI provisions in quarter three of 2019 ranging between four per cent and six per cent of its Common Equity Tier 1 capital as of June 2019.

“Profitability of the five largest UK banks – HSBC, Barclays, RBS, Lloyds and Santander UK – has long been weakened by persistently high conduct and litigation costs,” said Laurie Mayers, associate managing director at Moody’s.”–16th September 2019 – City A.M.

Lloyds Banking Group is facing an extra bill of up to £1.8bn to cover a late rush of claims for the mis-selling of Payment Protection Insurance (PPI)

Lloyds said it saw "a significant spike" in claims in the run-up to the final deadline of 29 August and that as a result would take an extra charge of £1.2bn-£1.8bn and said it would be suspending its share buyback plan - because of the uncertainty over PPI payments.

Banks and other providers sold millions of the policies, mainly between 1990 and 2010.

Last month's final deadline for PPI compensation prompted a surge of last-minute claims from consumers.

Lloyds said that at the time of its half-year results in July, it had assumed that PPI claims would continue to come in at the rate of 190,000 a week but in the run-up to the final deadline, Lloyds said it received 600,000 to 800,000 a week.

"Including claims by the Official Receiver, the group now estimates that it will need to make an incremental charge for PPI claims, in addition to the provisions to 30 June 2019, in the range of £1.2bn to £1.8bn in its Q3 interim management statement," the bank said.

Lloyds is not the only UK bank to have been hit by the late wave of claims as last week, RBS said it expected to take an additional charge of between £600m and £900m, while shares in CYBG fell sharply after it warned it would take a hit of up to £450m.

In February this year, Lloyds said it planned to buy back £1.75bn of its shares this year. However, given the "uncertainty around the final outcome for PPI" Lloyds said it had "decided to suspend the remainder of the 2019 buyback programme, with c. £600m of the up to £1.75bn programme expected to be unused at mid-September". - BBC Business News - 9th September 2019

Comment: The FCA imposed a deadline for PPI claims of 29th August 2019. Will the total PPI compensation payouts be the final 'nail in the coffin' of the banking industry as we know it? It's a sobering thought, that even the immense amount predicted of £53bn will never compensate for all that was taken or inflicted on the bank customers from this colossal and devious banking 'scam'. All banking groups rushed to enjoy PPI profits and many followed Lloyds because it was so easy to inflict PPI on customers. But, many small businesses failed because of the banks 'up front' and obscene PPI payments charged to loans and sales which then also increased the bank interest being charged. The banks were completely out of control and the regulators just watched as many small businesses were 'fleeced'.

Whilst we may all hope it will not happen again - can we be sure of that? Regulators have always protected banks first - adopting the 'three wise monkey's theory' - not seeing - not hearing and not speaking, even when it was all there in front of their eyes. In my experience, UK banking consumer's interests have always been last in our bank regulator's thoughts and priorities. - Eddy Weatherill - IBAS - 9th September 2019

See also: https://www.theguardian.com/business/nils-pratley-on-finance/2019/sep/09/banks-have-only-themselves-to-blame-for-ppi-reckoning


Industry bill for PPI claims could hit £53bn - The payment protection insurance (PPI) scandal could cost banks £53bn, according to a forecast made as firms warned of mounting bills from claims.

Dominic Lindley of New City Agenda made the estimate as CYBG warned of a potential £450m bill for new claims. Shares fell 21% to record lows.

The owner of Clydesdale, Yorkshire and Virgin Money blamed an "unprecedented volume" of complaints sparked by the 29 August deadline for claims. Other banks also face higher costs.

Royal Bank of Scotland, owner of NatWest, said on Wednesday it could face a £900m charge, while Co-operative Bank said on Thursday it was assessing its costs.

Mr Lindley, who has been keeping a tally at the think tank, said: "This means that total provisions from the banks could reach £53bn." He believes the bank with the biggest bill, Lloyds Banking Group, could announce an extra provision of £2bn, while Barclays might set aside as much as £1bn more.

PPI was designed to protect borrowers if they had an accident, fell sick or lost their job. But in millions of cases, the policyholders did not understand what they were paying for or that they might not be covered.

The deadline sparked a wave of publicity and fresh claims, according to the industry.

CYBG, which bought Virgin Money last year, said it received more than eight months' worth of requests for information about potential claims in just one month, with approximately 340,000 in aggregate over five weeks and some 120,000 of these were received in the final three days.

It said it also received a sustained increase in complaints during the same period, with an average of 5,000 a week during the first four weeks of August and an additional 22,000 complaints submitted during the final three days.

Co-op Bank on Thursday said it had "received a substantially greater volume of inquiries and complaints than expected in the final days prior to the complaint deadline" and was assessing the impact on its costs for processing and paying out claims.

Mr Lindley said the last-minute spike in PPI complaints would have "a significant impact on the banks when they announce their next financial results".

Ian Gordon, analyst at Investec, said the announcement by CYBG was "really quite shocking in terms of the anticipated damage".

He pointed out that £400m is 20% of CYBG's current stock market. He now assumes that the bank will not pay a dividend for this year.

CYBG's shares fell 20% to 110p - the lowest level since since it was spun out of National Australia Bank in 2016.BBC Business News 5th September 2019


Please note: IBAS UK Banking News archives from 2018 back to 1998 - are now retained for IBAS member's research only.



Bank of Scotland fined £45m for failing to report HBOS fraud - Bank of Scotland has been fined £45.5m for failing to report suspicions of fraud at its Reading branch.

The Financial Conduct Authority (FCA) said there was “insufficient challenge, scrutiny or inquiry across the organisation and from top to bottom”.

The bank identified suspicious behaviour at its Reading-based impaired assets team in early 2007, the FCA said. The fraudsters pushed multiple small firms out of business, and stripped their assets for personal gain.

“BOS’s failures caused delays to the investigations by both the FCA and Thames Valley Police.  There is no evidence anyone properly addressed their mind to this matter or its consequences.

“The result risked substantial prejudice to the interests of justice, delaying scrutiny of the fraud by regulators, the start of criminal proceedings as well as the payment of compensation to customers.” - City A.M. 21st June 2019


FCA slammed over ‘whitewash’ RBS GRG report - The Financial Conduct Authority (FCA) today published its report into why it was unable to take enforcement action against senior individuals within the GRG, which has been accused of stripping its customers assets to shore up its own balance sheet at the time of the financial crisis.

Kevin Hollinrake MP, co-chair of the APPG on fair business banking, said: “This report is another complete whitewash and another demonstrable failure of the regulator to perform its role.

“The FCA must publish a full account of its findings including naming those responsible for the shameful mistreatment of thousands of UK SMEs.”

“Phase two of the FCA’s own final requirement notice was supposed to ‘consider the root causes’ and establish whether ‘the causes of such treatment were known about, authorised by and/or sanctioned by management within RBS Group’. They have manifestly failed to do this. - City A.M. 13th June 2019


Multi-billion Pound Collective Consumer Claim Against Mastercard - A £14bn lawsuit against Mastercard for imposing charges on UK consumers moved closer to proceeding when the UK Court of Appeal reversed an earlier decision by the Competition Appeals Tribunal. This week the UK Court of Appeal set aside the tribunal’s 2017 ruling to allow the claimants, led by former financial ombudsman Walter Merricks to have the case reheard to allow for a class action. Mr Merricks is seeking £14bn in damages on behalf of 46m UK consumers for losses suffered as a result of alleged illegal credit card fees. 16th April 2019 Mastercard Consumer Claims

IBAS comment: Mastercard has fought this action using every means possible and will continue to do so, as they have already confirmed. Consumers wishing to back Walter Merricks and his claim can do so at the website and join the action and at the same time endorse the collective Consumer claim, against what most regard as inflated card fees over an extended period of time. – Eddy Weatherill IBAS - 16 th April 2019



TSB pledges to refund fraud victims - TSB has become the first UK bank to pledge to refund customers who fall victim to any type of fraud.

The "fraud refund guarantee" will cover cases where customers are tricked into authorising payments to fraudsters, as well as unauthorised transactions. The move comes as the bank tries to rebuild its image after an IT meltdown last April left 1.9 million customers unable to access their own money.

Banks have been under pressure to help tackle the rise in sophisticated fraud.

Richard Meddings, acting chief executive of TSB, told Radio 5 live's Wake Up To Money that the move was "about giving piece of mind to our customers and doing the right thing". He said: "It's a major societal blight. Innocent customers are being tricked."

He added that the bank was investing in education for customers and staff about fraud, but also had a message for crooks: "If you come for one of my customers, we will hunt you down." BBC Business News 15th April 2019

IBAS comment: The latest TSB ‘pledge’ follows what was a PR and IT disaster which affected a great many SME’s/business banking customers. The FCA has still to publish it’s own findings whilst TSB itself commissioned an independent review from lawyers Slaughter and May to detail what went wrong and what lessons need to be learned. We look forward to reading both.

What we know is that Spanish bank Sabadell bought TSB in 2015 and in 2018 they attempted to move customer records from the old Lloyds Banking Group computer platform to the Sabadell Proteo platform and that proved to be a disaster as customers became ‘locked out’ of their accounts and some customers being given access to the confidential records of others – see https://www.bbc.co.uk/news/business-46258889

The IT issues were many it seems and they continued for many weeks despite the bank's positive PR. TSB came under fierce criticism for the IT failings leading to a loss of circa £105m by the bank due to that ‘meltdown’ as the bank was forced to compensate customers and ‘put things right’ - see https://www.bbc.co.uk/news/business-47085474

The good news for TSB is that shortly their new chief executive Debbie Crosbie will take over a bank which has a Common Equity Tier 1 capital ratio - a key measure of financial strength – which stands at 19.5% and is among the strongest of UK banks.

So, maybe the ‘new broom’ and also the ‘will’ is there for this bank to now turn the previous 2018 disasters into opportunity and by doing so also ‘show’ us all that it can become an SME ‘champion’ – we will watch with interest. – Eddy Weatherill - IBAS - 15th April 2019


Most mornings parents in Vietnam will put face masks on their children before they go to school because the air is too dirty to breathe. Itʼs not hard to see why. Their cities are surrounded with giant coal plants churning out toxic air. And guess whoʼs bankrolling these coal plants? HSBC.

HSBC announced last year that it would stop financing new coal-fired power in all countries around the world - except in
Bangladesh, Indonesia, and Vietnam. British bankers are effectively deciding who gets to breathe clean air.

But with your help we can get HSBCʼs attention and change this.

Next week is HSBCs big annual shareholder meeting. The big bank will want to look good in front of its shareholders making it sensitive to pressure. Sign the petition

See also: Guardian 6th March 2019 article: Investors urge HSBC to stop bankrolling coal-burning projects


MPs call for inquiry into alleged forgery of signatures. - MPs are pressing the Treasury Select Committee to open an immediate inquiry into the alleged forgery of signatures in bank court documents.

They also want Lloyds chief executive Antonio Horta-Osorio to be questioned over how the bank treats customers who say they have found evidence of systemic fraud.

The all-party group on fair business banking says Lloyds appears to be repeating the same conduct it displayed towards customers who uncovered the HBOS Reading fraud, seeking to silence them.

Lloyds has denied there is evidence of systemic fraud and said it "does not recognise the issue" as set out by the group of MPs.

Kevin Hollinrake MP, chair of the all-party group, made the call for an inquiry after getting what he says was an unsatisfactory response from the bank.

The Civil Procedure Rules govern how law firms must behave in legal proceedings including repossessions.

They state:

Practice Direction 22 Statements of Truth

3.9 The individual who signs a statement of truth must print his full name clearly beneath his signature.

3.10 A legal representative who signs a statement of truth must sign in his own name and not that of his firm or employer

Questions over signatures are not confined to Lloyds. This article cites four signatures which were purportedly all signed by the same person at a different company on the same day and further evidence suggests one person has been signing under more than one name. – BBC Business News 29th March 2019




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IBAS has 27 years of continuous business banking dispute investigations and negotiations experience with all major UK lenders and we provide professional, confidential guidance and direct assistance to directors and proprietors who initially email us their business banking dispute/s information.

IBAS has acquired specialist business banking knowledge from the many IBAS investigations of UK business banking account disputes since 1992. Our investigations have provided us with experience and depth of knowledge which no other organization 'acting' for business banking customers can match.

IBAS business banking account investigations experience, our expertise in analysis of business bank loans, business bank current accounts, business banking contracts, business banking account facilities plus our knowledge of business banking debt recovery strategy - has provided us with expertise in utilizing our specialist banking knowledge. That is often the key to our members success and instrumental in almost miraculous settlements for IBAS members.

There is no other non - profit UK organization providing independent and specialist individual business banking advice and specific assistance to members.

IBAS business banking dispute knowledge and negotiating experience also provides IBAS members with a proven strategy for business banking claims and can provide defences to business banking debt claims.




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Last modified: 17th November 2019