Reported in Reuters today is a statement reported in the times by : John Cridland, director-general of the Confederation of British Industry. He goes on to say Britain’s government needs to limit compensation paid to customers mis-sold PPI loan insurance.
The article UK business group calls for a limit to PPI Claim Compensationin :
The head of Britain’s biggest business lobby group wants the government to introduce a legal time limit on claims for payment protection insurance compensation.
“PPI mis-selling is seen as a huge scandal that should never have happened. and it is right that consumers are able to get swift and proper redress,” Cridland wrote
“Banks are sending out tens of thousands of compensation payments and cheques, and there is a real sense that the ball is now firmly in the court of ambulance-chasing, claims-management companies,” he wrote.
The biggest retail banks in Britain face multi-billion pound losses to cover wrongly sold insurance on mortgages and other loans, often to people whose circumstances meant they were barred from making claims on the policies.
The PPI scandal is the latest instance of British banks being found to have mis-sold products, a list that includes the sale of specialist financial products known as swaps to small business, some of whom were left with big losses rather than the protection against interest rate moves they expected.
Why Limiting PPI Claim Compensation is Wrong.
Banks, the Government like to term it “Mis Sold” or “Mis Selling”
When in actual fact is was “fraudulently” sold to consumers with the sole intention of “defrauding” the consumer out of payments that they did not need to make.
If you or I as an individual had carried out such Fraud we would be in Prison. In fact the UBS trader who lost 2 billion during trading was recently jailed. He however did not swindle this from the public but rather his own company and crucially did not benefit from this financially. This man was jailed, although our wonderful British Banks managed to swindle 10 times that amount from consumers.
Putting a Cap on Compensation Payments is Wrong.
We have already established what the Banks managed to pull off was industial scale Fraud. At the moment the agreed rate of interest payed back to the victim is 8%. But this is a fraction of the interest that was taken from the victims in the first place. Take your average credit card, you are looking at anywhere from 12% – 29% being charged on these.
I would say 8% is letting the Banks off quite lightly.
I would go further to say to, John Cridland, director-general of the Confederation of British Industry. Compensation payments are boosting the economy and thereby your members at the Confedertaion of British Industry.
Dont take my word for it John!
The National Institute of Economic and Social Research (NIESR) said that even by a conservative estimate, a £10 billion PPI payout in 2012 could have the effect of raising GDP by 0.1%.
You can read the full article about PPI Compensation boosting the Economy
So John, before you pour scorn or try and limit the dispropotionate recompense entitled to victims of this crime, perhaps you should understand the situation a little better.
And one last thing John, PPI Claims are only a small portion of Claims lodged with the FSA, you should check your figures again.
PPI Claims Company News
Step-by-Step Guide to PPI Claims for Alliance & Leicester
Although Alliance & Leicester has been ordered to send notices to customers who have been mis-sold PPI, the real number of customers the bank mis-sold PPI to by far surpasses those who have actually received notices. If you are uncertain whether you have PPI from Alliance & Leicester, check through all of the paperwork that you were given at the time of taking out the loan, mortgage, credit card account, or other financial agreement. If you find evidence or think you have been mis-sold PPI, read on to find a step-by-step guide on how to claim back your PPI from Alliance & Leicester.
PPI Complaints Mis-Handled, Lloyds Banks Admits
Lloyds recently announced that one of its centres specialsing in handling PPI complaints has produced obvious shortcomings. The announcement comes on the heels of discovering that a Times reporter went undercover at one of the bank’s notorious complaints handling centres.
Can I claim PPI on Barclaycard?
If you purchased payment protection insurance (PPI) with your Barclaycard, then you may be able to make a claim against the company. The PPI scandal has rocked the nation and resulted in huge numbers of PPI claims involving the UK’s largest financial institutions. Customers who were victims of mis-selling have a right to file a claim for monetary compensation.
The Real cost of PPI to consumers
The cost of the PPI bank scandal to UK citizens can be measured both in pounds and the falling trust that consumers have in their banking institutions.
Which? has recently released an opinion to the Parliamentary Commission on Banking Standards that characterized the Payment Protection Insurance scheme as “a poor product that was sold badly.” Which? is a group that campaigns for the protection of consumer rights and offers an independent view on various subjects.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
Latest posts by Tim Capper (see all)
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