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Banks claw back bonuses to cover PPI claims

Posted on May 23rd 2011 by Canary Claims

In order to cover the huge payouts banks are facing to cover their mis sold PPI policies, many leading banks are considering whether to invoke claw back powers on executives involved in the PPI mis-selling scandal. During the years in which all the mis selling took place, bank executives received millions of pounds in bonuses which they may now have to pay back to cover the compensation to customers, which is expected to run into the billions.

However, there are legal implications for trying to do this. Internal sources at the banks have stated that the clawback clauses weren’t in place during the mis selling period. Additionally, it is much more difficult to clawback bonuses that have already been paid out, so only differred bonuses can be subject to this scheme if the banks decide that it is an appropriate action to take.

However, there are legal implications for trying to do this. Internal sources at the banks have stated that the claw back clauses weren’t in place during the mis selling period. Additionally, it is much more difficult to claw back bonuses that have already been paid out, so only differed bonuses can be subject to this scheme if the banks decide that it is an appropriate action to take.
PPI policies were designed to protect borrowers in the event of illness, injury or redundancy to help them cover their repayments. During the years of 2005-2010 these policies were widely mis sold. To find out if you are eligible for a PPI claim, then check out our claim back your PPI post.

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Author: Canary Claims
Posted in: PPI

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