The Clydesdale Bank is facing a very large increase in the cost of repayments for mis-selling of financial products.
Its owner, National Australia Bank, has announced that redress for Payment Protection Insurance will cost £420m for the financial year just ended. That is up from £75m announced in August. It is due to a higher level of complaints through an improved handling system at the Glasgow-based lender. The bank is dealing with cases stretching back more than 14 years. Clydesdale, which includes Yorkshire Bank, is also having to set aside £250m to repay businesses which were mis-sold complex financial products intended to protect against interest rate volatility. A statement said a wide range of uncertain factors, including possible fines, leaves it unclear what the total costs of mis-selling will be.....Read more here