Financial mis-selling: Clydesdale sets aside extra £500m
Clydesdale Bank is to set aside a further £500m to redress customers for financial mis-selling on top of the £1.2bn plus that has been set aside in 2015.
National Australian Bank
National Australian Bank (NAB), Clydesdale Bank’s parent company, had previously forecast that anything from £350m to £500m would be set aside in 2015.
NAB has paid out a total of £325m to compensate customers for the mis-selling of payment protection insurance (PPI). This is out of a total pot of £806m that had been set aside by the bank at the end of March 2015.
The amount set aside by NAB to cover compensation for customers relating to interest rate evading is £431m – at present almost half of this has been paid out.
NAB and Clydesdale – demerger
The extra funding to be set aside this year will be taken out of a mis-selling fund of around £1.7bn. NAB is currently demerging from Clydesdale. NAB is under instruction to set aside £1.7bn by UK regulators, but only once the demerger is complete. Glasgow-based bank Clydesdale also includes the Yorkshire Bank – its demerger from NAB is expected to be complete by the end of this year.
In April, Clydesdale was fined a total of £20.6m by the Financial Conduct Authority (FCA) for its ‘serious failings’ regarding its management of PPI claims. This is apparently on top of the issues with business customers and interest rate changes, plus the large number of bad property loans previously accrued by the bank.
NAB – substantial progress
NAB has released a statement saying that it had made ‘substantial progress’ with stock market sales regarding the demerger of NAB and Clydesdale. Full year results, which will be made available in late October, will provide further details.
If you have been mis-sold a financial product, don’t hesitate to get in touch with our specialist Financial Mis-Selling team today. Remember, we offer you a FREE no-obligation consultation. Call today 0800 888 6888 or email [email protected]
Also, please see our Financial Mis-selling service page for more information and statistics on all things PPI.