The bill for the UK’s payment protection insurance (PPI) scandal has climbed past £50bn, making it one of the world’s worst consumer mis-selling scandals of all time. This week, Lloyds Banking Group became the latest UK lender to report an unexpectedly large flurry of compensation demands ahead of last month’s final deadline. The bank suspended its share buyback programme and warned that it would have to pay up to £1.8bn on top of the more than £20bn it has already set aside.

The scandal involved signing mortgage and credit card customers up for largely useless insurance they often did not know about and could not claim on. Complaints surfaced in consumer magazine Which? as early as 1998, and the UK financial regulator first warned of poor sales practices in 2005. 

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now