FSA warn against new policies
The Financial Service Authority and Office of Fair Trading have warned banks and lenders not to create new versions of the infamous payment protection insurance (PPI) policies. They say they will do all that they can to avoid another loan insurance product that could damage the relationship between customers and their banks.
Since the Judicial Review earlier this year, the banks have been forced to pay compensation to thousands of customers who have been mis-sold the insurance. Claims Advisory Group is a claims management company that takes on PPI cases to re-claim the compensation their client are owed.
Margaret Cole, interim managing director of the FSA’s conduct business unit, explained, “The treatment of PPI complainants has left an indelible stain on the financial industry’s record.”
This speech from Margaret Cole confirms that customers will begin to lose faith in the financial industry if another scandal were to happen.
Big banking groups within the UK were the main source of PPI mis-selling to the public.
These banks have already lost billions of pounds from the PPI mis-selling scandal, with Lloyds putting aside £3.2 billion and Barclays £1 billion to cover compensation costs. Claims Advisory Group specialise in getting back compensation to those who have been mis-sold policies by their trusted banks.