Lloyds cheers investors with strong results

The scale of the payment protection insurance (PPI) mis-selling scandal has surged beyond expectations and shows no sign of levelling off, amid predictions that the total bill could hit £15bn.

Consumers took out PPI to help repay loans if they fell ill for a long period or became unemployed, but it later emerged that some people took out the policy without realising it or had felt pressured.

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High levels of publicity about the scandal, much of which has come from advertising by claims management firms which typically take a quarter of any payout, have also helped to pave the way for rocketing numbers of PPI complaints.