(20 April 2011 – UK) National Australia Bank’s (NAB) British banking business, Clydesdale Bank will have to cough up an additional £100 million (A$152 million) for miss-selling Payment Protection Insurance (PPI)NAB said in a statement: ‘The provision reflects an assessment of future PPI claims based upon estimates, statistical analysis and assumptions in relation to a wide range of uncertain factors, including how many PPI claims will be made against Clydesdale Bank PLC, for what value, and the prospects of miss-selling being established in relation to those claims.”
British banks lost a local court case in April that dealt with how policies were sold to customers, this prompted banks such as Lloyds to make a provision against PPI complaints.
The British Bankers’ Association does not intend to pursue the matter.
PPI is a complex product generally sold with mortgages, loans, and credit cards giving protection for a borrower’s ability to make repayments in the event of an unforeseen issue, like an accident or unemployment.