Despite the link to its reputable high street stores, the Marks and Spencer financial arm has now set aside a total of £400m and joined some of Britain’s biggest high street banks in recently increasing the amount set aside for PPI refunds.
It is a 35% rise on the previous year and also came with a warning from the bank that it is highly unsure on ‘the eventual cost of redress’ suggesting even more could follow.
After announcing £52m in provisions back in 2012 this latest allocation is the second highest M&S Bank have been forced to set aside, with the bank anticipating they will receive almost a quarter of a million complaints about PPI.
Over 231,000 complaints are expected, a figure which represents almost half the total PPI policies sold by M&S Bank.
After an acquisition in 2004 the bank is jointly owned by HSBC, who themselves have set aside £3.3bn for mis-sold PPI.
Set by the Financial Conduct Authority (FCA), the deadline is intended to bring an end to the mis-selling saga. However the industry watchdog has estimated that as many as 30m consumers with up to 64m policies could have been affected.
Almost £26.5bn has already been paid out so far to UK consumers who have complained about the way in which they were mis-sold PPI.
Despite recording 13m complaints and admitting they do not know how many more are yet to claim, the industry watchdog still placed a deadline on all PPI complaints.
It is estimated that £50bn worth of PPI policies were sold in total in the UK over the past 10-15 years, and some commentators are concerned that many will miss out due to the deadline.