A surge in claims for mis-sold payment protection insurance before last week’s deadline has forced Royal Bank of Scotland to set aside up to £900 million more to cover the bill.
The state-owned bank had already made provisions of £5.3 billion in respect of the country’s costliest consumer banking scandal and by the end of June it had paid out £4.9 billion.
The bank said that it would take a charge of £600 million to £900 million in its third-quarter results to cover the claims. It cautioned, however, that the claims were still being processed and that the final provision could be above or below that range.
The Financial Conduct Authority made August 29 the deadline for claims for mis-sold PPI to draw a line…