Uk Banks Forced To Re-Open 2.5 Million Insurance Mis-Selling Cases - Any Gdp Coming

[interestrateripoff]

http://uk.reuters.com/article/2014/08/29/uk-britain-banks-misselling-idUKKBN0GT0ZD20140829

Britain's financial regulator said banks and other financial services companies had agreed to re-open two and a half million loan insurance mis-selling complaints from 2012 and 2013 to make sure fair compensation was paid.

The Financial Conduct Authority said on Friday the industry had so far paid out 16 billion pounds to compensate customers mis-sold payment protection insurance (PPI), from 22 billion pounds set aside to deal with Britain's most expensive consumer scandal.

The policies were meant to protect customers who fell ill or lost their jobs but were often sold to those who didn't need them or would have been ineligible to claim.

The FCA said it was not satisfied that all PPI complaints received by banks in 2012 and 2013 had been treated fairly after the number of cases being won by customers fell. It said banks had subsequently agreed to review cases which may have been unfairly rejected or where too little compensation may have been paid.

It seems PPI is too good a boost to GDP for it to end. I wonder if the banks have been dragged kicking and screaming!

[zugzwang]

Just as Comrade Osborne's greatest stealth fiscal stimulus is winding down and his FCA sidekicks contrive an extension.

Viva el socialismo!

Edited August 29, 2014 by zugzwang

[Quicken]

http://www.bbc.co.uk/news/business-28983267

"Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions," said Martin Wheatley, chief executive at the FCA.

As I always say, it's not about trust but trustworthiness.

Trust without trustworthiness is what the financial service industry is all about.