CYBG receives 'unprecedented volumes' of PPI information requests

CYBG, the owner of Clydesdale Bank, Yorkshire Bank and Virgin Money, said on Wednesday that it received "unprecedented volumes" of information requests ahead of the payment protection insurance complaints deadline.

"Following its Q3 trading update on 30 July 2019, the group, in line with the industry experience, received unprecedented volumes of information requests and saw a significant spike in the final days prior to the complaint deadline," the company said.

It also received an increase in complaints in August and a similar spike during the final days.

CYBG is currently working to determine its final estimate of the volume of information requests and complaints to be processed. It said that determining the quality of the requests received and the related financial impact will take several months.

"However, the group is seeking to establish an initial cost estimate, which is expected to be material, and the group will update the market as soon as possible."

At 0900 BST, the shares were down 18% at 114.35p.

On Wednesday, RBS announced that a last-minute higher-than-expected spike in claims for PPI would result in an extra charge of £600m to £900m in the third quarter.