The PPI scandal has turned “portions of Britain into fraudsters”, the chairman of Barclays has warned.
John McFarlane said that an “enormous” proportion of claims for compensation over mis-sold payment protection insurance have been bogus.
The latest Financial Conduct Authority figures show £32.2 billion has been paid out to claimants since 2011, with £353 million paid in July alone.
Some consumer groups estimate the total of mis-sold policies to be around £50 billion and customers can continue making claims until August 2019.
Banks have had to set aside billions of pounds in compensation, while Barclays blamed PPI charges for taking chunk out of profits in the first half of this year.