Sodium Haze: PPI scandal - Barclays caves in

Monday, 13 June 2011

PPI scandal - Barclays caves in

This from the good folk at [UK PPI Claims] - its very topical this morning as Barclays have completely caved in to demands to settle the claims of customers they basically defrauded.

"The outcome of the PPI situation would appear to have been a resounding success for the consumer, with banks now forced to compensate a large number of their loan customers from over the past decade.  The courts have signalled their strong disapproval, the FSA, the OFT, the Ombudsman – all have expressed disappointment at the actions of our largest, most reputable [sic] financial institutions in mis-selling, and on an industrial scale.

In response to the PPI mis-selling scandal, new regulations have been tabled which will, amongst other things, prevent PPI from being sold within 14 days of a loan, in an attempt to offer a further degree of consumer protection in preventing or discouraging direct mis-selling. Banks have been vocal in their disapproval of the new rules, which might perhaps suggest that they could have an impact on making mis-selling, or selling PPI at any rate more difficult. And bearing in mind the extensive compensation reserves set up by banks and lenders across the sector to fund their PPI claims liability, these factors combined could have an effect on clamping down on future mis-selling opportunities, and help put lenders in their place as far as doing business fairly is concerned." [we wish! - now just their derivatives trading, tax evasion and fractional reserve banking to sort out]

"However, with some indications from consumer groups that banks might also be mis-selling other insurance products like travel insurance along with current accounts, some fear PPI could be merely the tip of the iceberg as far as banking mis-selling is concerned."

Well all The Haze could help you out there - of course its the tip of the iceberg and you can expect the banks to fight tooth and nail against any attempt to protect the consumer.
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