The refund of mis-sold PPI money to customers has come as a boost for the beleaguered UK economy. The overall impact is the same as that of a tax cut announced by the government. Individuals were sold PPI policies that they were not eligible to buy or that they did not need. Now that the scandal has come out in the open, banks have been compelled to set aside £10 billion towards compensation. As compensation reaches customers, more and more people are ending up with extra cash in their hands and this is giving a much needed boost to economy as a whole.
Rules of conduct
The Association wants the Ministry of Justice to speed up the process of finalization of you conduct rules applicable to claims management companies. In its opinion, the new rules should cover details like charging of upfront fees, cold calling, transparency in pricing, standards relating to service, handling of cases in a professional manner, restrictions on Continue reading
Statistics provided by the Financial Ombudsman Service in its annual report for the year 2011-12 has shown that the organization received more than 264,000 new cases in the year out of which more than 157,000 cases were related to payment protection insurance policies. 60% of the total number of new cases received by the FOS during the year was related to missold PPI policies alone. The large number of complaints also resulted in more than 1.2 million front-line complaints received by the FOS. This means that the organization received and handled more than 5000 complaints on a daily basis.
St Andrews Insurance plc and St Andrews Life Assurance plc, two London-based companies of the Lloyds banking group shall receive the assets and liabilities of Halifax Insurance Ireland Ltd and Halifax Assurance Ireland Ltd. The two companies having around 220 employees will be liquidated and all the policies sold to customers will be transferred to Continue reading
The Financial Ombudsman Service has released information about the total number of complaints received in the second quarter of 2012 along with the breakup of the types of products that people complained about the most. There has been 63% increase in the complaints relating to income protection policies. While the total contribution of these policies to total complaints received may be less; the increase indicates that people are still Continue reading
Lloyds Banking Group failed to impress investors and analysts with its first quarter results indicating profit of £288 million before tax. Investors and stakeholders were not impressed by the fact that the bank had to pay an extra sum of £375 million to the victims of mis-selling of PPI policies. However, there is no denying that the 2012 first quarter performance is much better than performance in the first quarter of the previous year. The bank had posted a loss Continue reading
Barclays Bank has witnessed a 93% increase in the number of complaints relating to loan insurance received in the first half of 2011. The bank had participated in a legal dispute relating to PPI rules and had lost the same in April. This resulted in a drastic increase in the number of complaints as compared to the first half of 2010. The bank received 73,000 complaints in first half of 2011 as compared to just 38,000 complaints for the same period in the previous year. Continue reading
Volume of complaints received by the Financial Ombudsman Service is coming down from the stratospheric levels reached in the past few years. However, mis-sold PPI policies continued to remain a major problem. 56% of all new cases received in the second quarter of 2012 are related to missold PPI. On the other hand, complaints relating to credit cards and current account transactions constitute just 6% of the total new complaints received in the quarter. While the total number of complaints received by the financial mediator has come Continue reading
Payment protection insurance policies were designed to protect borrowers from loan default in event of loss of job, illness or even death. However, greedy banks ended up selling more than 20 million policies to individuals who did not need it, or were not eligible to buy it, or did not know that they were buying such a policy and paying for the same. Continue reading
The management of Barclays has reason to cheer as the first-quarter results of 2012 were announced. Despite setting aside £300 million extra for settling claims filed by victims of mis-sold PPI policies, the bank announced a loss of just £475 million before tax. The bank had made a profit of £1.66 billion for the same quarter in the previous year. An adjustment of £2.62 billion combined with the extra provisioning resulted in the loss. The management is adopting a bullish approach because the bank would have earned a profit of £2.45 billion Continue reading