Barclays sets aside further $1.5bn for mis-selling redress

5 February 2013

Barclays is to set aside another £1 billion ($1.5 billion) to deal with two ongoing mis-selling scandals, it has emerged.

The major British bank has announced this morning (5 February) that it has decided to boost its provisions for handling the mis-selling of payment protection insurance and interest rate hedging products (IRHP) to small businesses following an internal review.

Last week (31 January), the Financial Services Authority (FSA) revealed it has instructed Barclays and the other three biggest financiers in the UK - HSBC, Royal Bank of Scotland and Lloyds - to identify and provide redress to any customers who have been affected by IHRP mis-selling.

Barclays has reacted to the FSA's request by adding another £400 million to its budget for IRHP redress, meaning the total in this area now stands at £850 million.

In addition, an extra £600 million has been set aside for PPI claims, taking this total to £2.6 billion.

By Asim Shah

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