Payment protection insurance bill could top £4bn - Times Online: "Nearly half a million people could share more than £4 billion in compensation after being mis-sold payment protection insurance, the Financial Services Authority said.
The payouts could also go to people who have not made formal complaints and may not even be aware that they had been sold an inappropriate policy.
The insurance, which is sold alongside credit agreements, covers payments in case of illness or unemployment.
The City regulator has revised upwards the original estimate for the number of complaints it expects providers of the insurance to handle in the coming years to 450,000, from 158,000 it said originally."
Once again it is regulation after the event, the FSA is incapable of examining the sales processes of large financial institutions, it has claimed to me that it does not have the resources and with 16 regulators supervising the likes of Barclays it is unsurprising that the practices of lenders have passed under the regulatory radar despite decades of warnings.
The banks pay 28% of the FSA's costs yet produce 99.999% of our problems.
Society is in dire need of regulatory balance, I see none.
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