Banks' PPI bill could be double current estimates - reports

The final cost to banks of the PPI mis-selling scandal could be as much as £25bn, almost double the figure the banks have estimated so far.

According to the Times, the Bank of England has been warned the final cost to banks for mis-selling payment protection insurance will be far in excess of the amount they have set aside so far, some £13bn. The paper said it had used industry calculations applying the Financial Services Authority’s monthly PPI payout figures and historic selling data. The jump comes after the big banks, on the orders of the FSA, started to write to customers who were sold PPI to invite them to consider claiming. Some began sending out letters only as recently as October, the Times reports. When the U...