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News

Barclays Profits Hit By PPI Provision

In a move that will have many consumers who fell victim to PPI mis-selling dancing in the aisles, it has been revealed that one of the main banks involved in the scandal, Barclays, have seen their profits fall as a result of the refunds they have been issuing regarding missold payment protection.

Their current figures estimate that the profits for the bank by the end of 2011 totalled £2.6 millions, which was a fall of 33% over the same period of last year, with most of the profits actually stemming from it’s investment banking arm Barclays Capital.

With the estimated payouts to victims of missold payment protection expected to amount to billions, it’s not necessarily a surprise that the amount of money has already increased, especially with Barclays being the firm that were the first to begin repayments to consumers on a no quibble basis as a gesture of what they called ‘goodwill’.

With the banking giant HSBC admitting that it was being forced to cut around 25,000 jobs worldwide as a result of decreasing profits, it will be interesting to see how businesses are affected in future by the continued refunding of missold payment protection to consumers.

To find out more from the missold payment protection industry, visit the Creditline Financial website now by clicking the link here.

Posted by Shaun Edwards on 05 Aug 2011

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