Nationwide reveals PPI hit of up to £50m as it becomes latest victim of claims rush
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Nationwide has become the latest company to reveal a hefty charge for mis-sold payment protection insurance (PPI) amid a surge in last-minute claims.
Read more: N Brown shares drop after it reveals £20m to £30m PPI provision
The building society today said it has set aside a provision of between £20m and £50m, in addition to the £159m it had already ring-fenced for the financial year to April.
“In line with experience in the broader market, [Nationwide] received a higher than anticipated volume of complaints and enquiries in the period immediately before the deadline,” the company said in a statement.
Nationwide said the final figure was subject to change, but insisted even the upper end of its initial estimate would not be significant to its financial position.
The high street stalwart is the latest organisation to feel the impact of a late influx of claims, as customers raced to file their requests before the 29 August deadline.
Retailer N Brown, which owns plus-size clothing brand Jacamo, yesterday suffered a sharp drop in shares after revealing a PPI provision of between £20m and £30m.
Barclays and Lloyds have also shocked investors by unveiled PPI provisions of £1.6bn and £1.8bn respectively following a worse-than-expected rush of applications.
Read more: Santander accused of circumventing professional PPI claimers
The Financial Conduct Authority (FCA) has reported that roughly £36bn in compensation has been paid out so far, with the typical payout amounting to £2,000.
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