Banks' PPI costs could double to £25bn
Banks may be forced to pay £25bn in repayments for payment protection (PPI) mis-selling, according to The Times.
The newspaper reported that this is nearly double the £13bn that banks have set aside for repayments so far, according to calculations based on the Financial Services Authority’s (FSA) monthly PPI payout figures and historic selling data.
And it added that in a “worse-case scenario” the costs of PPI could be as high as £40bn, if the banks were forced to pay back every fee they generated over more than a decade.
The hike in repayment costs follows an order from the FSA to banks to contact
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