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NatWest Group PLC (LON:NWG) was criticised for wasting taxpayers' money on top lawyers to crush new payment protection insurance claims.
- The bank is believed to have spent a whopping £10,000 on individual court cases to battle customers, who feel that PPI was mis-sold to them.
- Judge Simon Mitchell had a few months back questioned the motive of spending so much for defending a PPI claim.
- Simon Mitchell added that being a taxpayer, he is a part-owner of the bank and the bank has not asked about the commercial decision to pursue this case, which is costing more than what the bank is claiming.
- The bank is 62 per cent owned by taxpayers. The PPIs has reportedly been sold from the 1970s to customers who could not repay loans due to redundancy or illness.
- After the mis-selling was reported and brought to court, banks were asked to pay compensation, and so far, around £38 billion has been paid in compensation.
- Meanwhile, NatWest Group PLC had recently acquired the residential mortgage portfolio from Metro Bank Plc. The company will be getting the economic benefits of the acquisition, but the Metro Bank will keep providing service and handle the mortgage portfolio.
- On 29 December 2020, the stocks of the company traded lower by 2.34% from its previous closing, hovering at around GBX 165.15 at 14:34 PM GMT+1.
