The banking operations of the the high street clothing giant Marks and Spencer has announced that it will set aside nearly £130 million for customer who the company mis-sold payment protection insurance to.
The figure represents a significant increase from the figure of £83 million that M&S bank had put away to compensate ppi claims that the company expected to receive.
Marks and Spencer Bank, which the company runs in tandem with HSBC said that it would be receiving over 230,000 ppi claims compensation requests. It also said that it couldn’t be sure what the final cost of would be of the ppi claims that the bank would have to pay out.
The latest figure takes the total set aside by the bank for mis-sold PPI claims over the past four years to £400million.
The last provision means profit at the bank for the year more than halved to £23million.
It is unclear what impact the provision will have on Marks & Spencer’s profit when it announces annual figures later this month. Marks & Spencer declined to comment.
In March, the Financial Conduct Authority announced a final deadline of August 2019 for claims against institutions which mis-sold PPI. It plans to alert consumers with an advertising campaign, leading some bankers to expect a late rush of claims.
The total cost of PPI mis-selling to all financial institutions is expected to reach more than £40billion.