British banks have given up their legal battle to avoid paying compensation to customers mis-sold payment protection on their loans. Last month a court ruled the banks were at fault. The total bill could be around nine billion euros. Barclays is setting aside more than 1.1 billion euros for settlements.
Barclays is just one of the major banks that have thrown in the towel since Lloyds, the biggest provider of payment protection, last week decided it would pay compensation, earmarking more than three billion euros.
Over five million euros is being put aside by HSBC – whose share price fell by mid-morning in London.
UK banks have been under pressure from regulators since the financial crisis and Business Secretary Vince Cable is now criticising overdraft fees.