FSA review of Banks and PPI sales.

[CliveH]

In the FSA’s thematic work on payment protection insurance, it revealed one Banks very generous bonus system that could result in staff earning a 100% bonus of their basic salary if they sold PPI to at least half their customers.

 

The FSA said: ‘However, no bonus would be paid unless staff sold PPI to at least 50% of all customers. This incentive increased the risk of sales staff mis-selling PPI.’

 

Amazing that the Banks treated customers this way and expected to get away with it.

 

Also out today is the Statistic that Barclays takes the "Highest number of Complaints" to the FOS (Financial Ombudsman Service) to a new level in that they had over 22,000 complaints made against them. In fact the figure works out at over 100 complaints a (working) day.

 

An amazingly high number of complaints - the percentage of complaints upheld by the FOS for this period is not out yet but last year the percentage of complaints upheld for the Banks as a whole was 78%.

[Dave225]

Yes, but the question is 'what can be done to remedy the situation?' We all know the banks are a basket case but we have so much of our cash tied up in there that they can still get away with larceny. As a shareholder who lost money with the banks I would honestly have preferred them to have been allowed to just go bust. The bankers would have lost their jobs and had to fix things themselves. As it turned out I lost my cash and then had more taken from me to give to the greedy b......s.

[CliveH]

Could not agree more Dave - the FSCS (Financial Services Compernsation Scheme) is there - we all thought - to compensate CUSTOMERS of a Financial Organisation that went bust. Why this planned and paid for safety net was ignored is still a question that requires an answer.

 

Because all the bail-out of the Banks using taxpayers money has done is to begger the country whilst underlining to the Banks that they are, according to government, too big to fail. When you look at how the Regulator allowed the banks to rip us all off you have to wonder what the hell they were there for?

 

Where were the FSA when all the PPI selling was going on? - it was NOT THE FSA THAT BLEW THE WHISTLE ON THIS! - it was a Judge who ruled against the Banks when individuals took them to court. The Judge was so appalled that he insisted that ALL PPI sales were reviewed. It was only then that the FSA was forced to act.

[Dave225]

I know it is daft and would never work but why does the Bank of England not set up its own retail division. Take over the retail divisions of thr bailed out banks and start working directly with the public, just re name the branches. They already print the notes etc. Leave the bailed out banks with their debts and tell 'em to sort it out themselves. That would mean all front line staff retain their jobs but the big boys are in the proverbial.

 

All people want is a bank that does what it supposed to do, and be trustworthy.