RBS raises its PPI claims fund by £400m

<p>RBS has raised its PPI claims fund by £400 million, sending its share price lower.</p>

Royal Bank of Scotland (RBS) stocks have fallen in London this morning (November 2nd) following news RBS has raised its fund for compensating those disenfranchised by the payment protection insurance (PPI) mis-selling scandal.

The bank has set aside an additional £400 million to cover the cost of claims, bringing the organisation's total charged for PPI mis-selling to £1.7 billion.

Both Barclays and Lloyds announced this week that they too are putting further funding towards compensating customers wrongly sold PPI and including this latest increase from RBS, the total bill for the British banking sector is now £10.8 billion.

RBS' has also set aside a further £50 million to cover the cost of claims made following its computer systems failure, which blocked RBS, NatWest and Ulster Bank customers from their accounts for a weekend earlier this year.

At 09:45 GMT, RBS shares were down by 1.5 per cent to a value of 282.90p.

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