McFarlane’s PPI gaffe

THE PPI scandal has turned Britons into ‘fraudsters’ and weakened banks, according to a scathing attack by the chairman of Barclays.

John McFarlane, 71, said the avalanche of claims had fuelled ‘flat-screen television’ buying and the Government had been complicit.

He said: ‘The percentage of fraudulent claims is enormous. We have turned portions of Britain into fraudsters. It was in the Government’s interests as consumer spending rose and it weakened the banks, so the Government is complicit.’

He added: ‘This is stimulation of the economy by buying flat-screen televisions.’

More than 50m PPI policies were sold, with more than £ 30bn paid out to claimants since 2011.