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New jobs as Barclays react to rising PPI claims

Barclays continue to be embroiled in the Payment Protection Insurance (PPI) scandal, and it has now been revealed that the company have had to create 300 new jobs to handle rising complaints. The news comes after it was revealed that Bob Diamond, chief executive of the financial institution, is facing huge criticism over his take home pay for 2011.

Missold PPI has swept the country in the past decade, and hundreds of thousands of people have been wrongly sold insurance that was invalid, unsuitable or pushed upon consumers. In some cases, insurance was tacked onto credit agreements without people being informed, whilst, in other situations, consumers were told that approvals for loans or mortgages were unlikely to go through unless PPI was taken out.

Barclays have been one bank at the centre of the scandal, and though the financial institution is not taxpayer backed, there has been fury at the £17.1m taken home by chief executive Mr Diamond in 2011. In addition, it has been revealed that the liability costs to the bank have had to be altered upwards due to soaring claims.

Now it has been reported that the bank is to create 300 new jobs to handle the deluge of soaring missold PPI claims. A spokesperson for the company said, “We can confirm we’re recruiting for a number of temporary and permanent roles at Barclays House in Poole as part of our investment in the agenda of managing customer complaints.”  For those people who have submitted a claim to the bank, it is hoped that the uptake of staff will result in quicker compensation payouts.