Banks pay out £1.9bn in PPI mis-selling scandal
BANKS paid out a record £441m in compensation for insurance mis-selling in December, taking the total payout for 2011 to £1.9bn.
The Financial Services Authority said payouts in December jumped 16 per cent from the previous record of £379m in November.
There has been an increase in monthly payouts in almost every month since April, when banks lost a long-running legal battle to avoid paying compensation.
Analysts predict that the total bill to compensate customers who were wrongly sold loan insurance could now hit £6bn.
Lloyds Banking Group, led by António Horta-Osório, has set aside £3.2bn to compensate the bank’s customers, and this week the said it would claw back past bonus payments to bosses who were in charge at the time of the mis-selling.