Coffers and reputations hit equally hard
by Allan Nogle, 26th September 2011
The reputation of the UK's banks and lenders has taken a severe
hit due to the recent PPI mis-selling scandal.
Many thousands of UK citizens are now approaching financial
institutions more circumspectly than previously after learning that
they had fallen victim to an egregious industry-wide mis-selling of
the product payment protection insurance, more commonly abbreviated
to PPI.
The corruption does not lie within the constitution of PPI
itself - it is a potentially very useful insurance policy conceived
for the purpose of covering a borrower's repayments in the event of
some great misfortune befalling them which leaves them with
insufficient funds.
Not only has this scandal harmed the public image of the banks,
it has also left them considerably worse off, due to the volume of
compensation claims and the amount of money they have been made to
hand back to those who were cheated out of their hard-earned
cash.
This comes after a long and bitter legal battle between the
banks and the Financial Services Authority (FSA) resulted in a
ruling compelling the banks to refund anybody who could demonstrate
that PPI had been wrongly sold to them.
Mis-selling of PPI is a beast which takes many incarnations -
some people had it added to their loan completely unbeknownst to
them, while others took it out on the understanding that it was
compulsory, when in fact it was not. Many people who have
experienced these or other forms of deceit have successfully won
handsome sums in compensation after forming a claim.
What's more, thousands of people still remain unaware of the
iniquitous deed which was committed on them, and as more and more
of these people get wind of the duplicity perpetrated by their
lenders, the volume of claims with which the banks are being
assailed is unlikely to abate.
Testimonial
"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"
Mr R Evans 11 Nov 2010