Barclays Bank has set aside another £700m to cover its costs after a surge of customer complaints over the payment protection insurance (PPI) mis-selling scandal.
The move takes the bank's total estimated bill to £2bn.
It released a statement on Thursday afternoon which read: " Barclays has experienced higher than previously anticipated PPI claim volumes since the end of the first half, and has therefore determined that it is appropriate to provide a further £700m as at 30 September 2012.
"This is in addition to provisions recognised of £1bn in 2011 and £300m in the first quarter of 2012. Based on claims experience to date and anticipated future volumes, the resulting provision includes Barclays best estimate of expected costs of future PPI redress.
"Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision."
The mis-selling of PPI, which was designed to cover payments in the event of ill health or redundancy, is set to cost the British financial services industry more than £10bn.
According to the Financial Ombudsman Service, Barclays received the most PPI complaints over the first six months of 2012, totalling 19,522.
Lloyds TSB followed next with 9,493.
The ombudsman has warned that PPI complaints are on course to more than double the 165,000 that it had anticipated this year though claims management companies - and some consumers alike - have been accused of cashing in on the scandal and inundating banks with questionable claims.