By Marcus Leach
The news that Barclays is to set aside a further £600 million provision for mis-sold payment protection insurance (PPI), and £400m for interest rate swaps highlights the scale of mis-selling to both individuals and businesses.
Craig Lowther, managing director of PPI claims company, MoneyBoomerang, has said it reveals a 'gargantuan' scale of mis-selling.
"These latest provisions drive home once and for all the gargantuan scale of the banks' mis-selling to both individuals and small to medium sized businesses (SMEs)," he said.
"It wasn't too long ago that Barclays made a £700m provision for PPI. Even now I don't expect this to be the end of it.
"We expect provisions for interest rate swaps, like PPI, to continue to rise over time. The overall provision in 12 and 24 months' time will be a world apart from what it is now. It will be a mirror image of PPI.
"In fairness to Barclays, it is taking the lead on meeting its obligations, is proactive in the claims process and is putting many other banks to shame.
"However, there remains a deep-seated intransigence at many banks, an instinct to delay rather than play ball. Either that or to pass valid claims through to the Financial Ombudsman Service, which is struggling.
"We continue to call on both the FSA and the FOS to increase pressure on the lenders who are dragging their heels."
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