Lloyds and Barclays hit by $4bn insurance mis-selling claims

Lloyds Banking Group and Barclays have both announced they are facing billions of pounds in new costs to cover a late rush of claims for the mis-selling of Payment Protection Insurance (PPI). The lenders said they underestimated the number of complaints they would receive in the run-up to the 29 August deadline and will increase provisions following a spike in claims before the cut-off. Lloyds expects to take another PPI charge of between £1.2bn and £1.8bn in the third quarter, while Barclays expects to put aside between £1.2bn and £1.6bn. The huge provisions show how banks in Britain...