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Tuesday, January 23, 2007

FSA Fines Banks

In the coming weeks, ten banks and lenders will be fined by the Financial Services Authority (FSA) for mis-selling payment protection insurance (PPI).

It is expected that these, yet to be named, bodies will each receive fines of about £1M.

It is also expected that the news of the fines will prompt customers to launch their own compensation claims, for the mis-selling of these insurance policies. Some cynics dub the selling of these policies as a "protection racket".

In 2006 the OFT conducted a 5 month investigation into PPI, describing it as a type of insurance that failed consumers because too often it gave them a poor deal and offered less protection than they thought.

To date Regency, Loans.co.uk, and Redcats have been fined £781K between them for mis-selling the policies.

It seems to be an unfortunate fact of life that Britain's financial services industry seems to regard the Biriahs public as sheep ready for "financial slaughter". It is time that the public fought back.

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