UK Banks In Stand-off With Government Over PPI Claims

Some of the UK’s largest banks are in a stand-off with the government over whether they should hand over millions of pounds in compensation to the creditors of people who bought payment protection insurance and later went bankrupt, the Financial Times reported. The Official Receiver, part of the government’s Insolvency Service, submitted tens of thousands of complaints about PPI before a deadline for compensation claims last month. The claims were submitted on behalf of the estates of people who went bankrupt between 2000 and 2018, with any compensation to be distributed to creditors. However, senior figures at three different companies and people close to the government said the Official Receiver’s efforts had provoked resistance from banks. “There is a question over whether any of those [complaints] are legitimate at all,” said a senior executive at one high street lender. Read more