Lloyds' PPI costs to hit more than £6.5bn

Sky News reports that Lloyds Banking Group will tomorrow announce that it will allocate around £1.3bn towards payments for PPI mis-selling taking its total beyond £6.5bn for the scandal.

The total cost for the PPI mis-selling scandal for the big four lenders would then exceed £12.5bn.

The British Bankers' Association has been in talks for several months about a so-called 'time-barring exercise', which would involve the industry funding a massive advertising campaign to promote awareness of PPI mis-selling in return for a cut-off date for claims.

Consumer groups have, however, attacked the project, arguing that banks should not be allowed to set a deadline for consumers to receive redress for banks’ misbehaviour.

(Sky News)

City A.M. columnist Mark Kleinman: