Lloyds cheers investors with strong results

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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.

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.