At more than £50 billion ($95.8b), the financial impact now dwarfs all other British banking scandals in scale.

It rivals the penalties and profit destruction that hit the largest US banks after the 2008 financial crisis.

Barclays and Lloyds on Monday became the latest lenders to admit that the cost of compensating customers for mis-sold payment protection insurance was much worse than anticipated.

"We're not counting the complaints any more," said a banker at one high-street lender. "We're weighing them."

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PPI was supposed to be a simple insurance product that allowed borrowers to maintain loan repayments if they lost their

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