Barclays share price: Bank to axe 244 PPI claims jobs in Glasgow

on Nov 22, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Friday, November 22: Barclays (LON:BARC) yesterday said it would close its Glasgow office that handles claims for the mis-selling of payment protection insurance (PPI), citing falling number of mis-selling cases and expiry of the building’s lease next year.

A total of 244 jobs are expected to be lost with the closure of the office, the bank’s sole Scottish PPI claims centre. Barclays said that it would try to find alternative roles for the 137 full-time and 107 temporary staff affected. Ongoing PPI claims will now be handled at call centres in Sunderland, Liverpool and Barclays’ headquarters in London.

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Barclays’ share price has been marginally higher in today’s early morning trading in London.
A Barclays’ spokesman said: “In the last three years, Barclays has invested significantly in resolving PPI cases, including a designated centre in Glasgow. The volume of PPI cases has fallen and this reduction means the centre’s role has been fulfilled, with further PPI cases to be managed through existing support centres.

Banks have so far set aside £17 billion to deal with mis-sold PPI. It has become the most expensive consumer scandal in British history. PPI was designed to provide loan repayment cover, should the customer fall ill, lose their job or have an accident, but millions of customers have complained that they never wanted or needed the policy in the first place.

The issue of PPI mis-selling accounted for 61 percent of some 1.79 million complaints relating to banks in the first half of this year, according to Financial Conduct Authority data. Barclays Bank was the most complained about financial firm in the UK with 370,733 complaints from customers in the period. Even though the number of new complaints was 11 percent lower than last year, Barclays remains top of the list.

The latest cuts in Glasgow come on top of last week’s announcement of 1,700 UK redundancies prompted by a decision to automate more services (Barclays share price: Bank to axe 1,700 staff at branches). Barclays’ staff in Coventry and Dartford were also warned two weeks ago that 600 jobs could be cut.
Meanwhile, it has been announced that Barclays Chief Executive Antony Jenkins will become the next chairman of the charity Business in the Community (BITC), a member of The Prince’s Charities, the group of non-profit organisations of which Prince Charles is the president

“…we can confirm that Antony Jenkins, Group CEO Barclays will be joining the BITC Board in April 2014 and taking over as Chair in 2015,” BITC said on its website. BITC‘s current chairman Mark Price, the boss of Waitrose and deputy chairman of the John Lewis Partnership, is due to step down in January.
“The arrival of Jenkins at BitC would underpin his credentials as a corporate leader determined to hone his own ethical credentials as well as those of Barclays and the broader business community,” SkyNews commented in its coverage of the news.
Since replacing Bob Diamond at the helm at Barclays last year, Jenkins has sought to rebuild its reputation. However, he has been faced with ongoing regulatory probes into past misdeeds, including the circumstances of the bank’s bailout by Middle Eastern shareholders in 2008 and an investigation into potential manipulation of forex markets by traders employed by Barclays and other banks.
**As of 9:28 UTC buy Barclays shares at 257.90p**
**As of 9:28 UTC sell Barclays shares at 257.75p**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.
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