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Banks 'in denial' over PPI, say Which


CliveH

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Thursday, November 01, 2012

 

 

 

Which? have criticised banks over the PPI scandal, saying that they have been 'in denial' about the true costs needed to redress customers.

 

There has now been over £12.3bn set aside by the banks, making PPI the biggest mis-selling scandal of all time, but provisions could still run out in a matter of months.

 

Lloyds have today announced a further £1 billion provision for repaying mis-sold PPI, taking the total amount set aside by the banks to a whopping £12.3 billion.

 

The statement from Which? claims that, if current pay-out rates continue, PPI provisions would run out by the end of 2012, and even Lloyd's increased provisions would only last until March next year.

 

Which? chief executive Peter Vicary-Smith said:

 

“The banks have been in denial about the true scale of this scandal. Their piecemeal approach to topping up provisions is an inadequate response to what is now the biggest financial mis- selling scandal of all time.

 

“The banks must now come clean about how many more complaints they’re expecting, publish monthly updates on the amounts that have been paid back, and claw back bonuses from executives who presided over £12.3bn mis-selling travesty.

 

“Consumers are continually being let down by banks. We’re campaigning for big change so that banks work for customers, not bankers and to protect the public from further mis-selling scandals.”

 

..............................

 

As someone who works in Financial Services and over the last 25 years see the antics of the High Street Banks just get worse and worse and worse - it is almost satisfying to see them get their just rewards for such shocking behaviour.

 

Only this week a Trustee we advise was told by a High Street Bank that they did not need to open a Trustee Bank Account for monies being taken out of the Trust as "Any non-interest earning account would do". The tax consequences of so doing for the Trustees and the Beneficiaries of the Trust would have been catastrophic had the Trustees taken this idiots "advice".

 

They really have no idea at all.

 

Staggering to think they are supposedly "Regulated" by the FSA. :-S

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Guest pelmetman
Dave225 - 2012-11-02 7:15 PM

 

tell us some good news.

 

I've booked 2 months in Spain ;-)...........................with wifi :D

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Dave225 - 2012-11-02 7:15 PM

 

OK Clive and I am not being cheeky, I hope but....

 

What is, in your opinion, the answer to resolve all these problems.

 

Stop telling us the bad news, tell us some good news.

 

I wish I could see some hope for improvement Dave :-S

 

The Banks did this under the noses of a supposed "Super Regulator" (FSA) who because it did not know what it was doing took up the offer of seconded "managers" from .................?????

 

You guessed it!!!

 

The Banks !!

 

So an effective Coup took place. The resulting mess is what we are now dealing with as a country - the PPI debacle is just another symptom.

 

We have another serious "Symptom" with the payment of a huge sum into the pension of a person taking redundancy from the Serious Fraud Office (SFO)

 

You have to think about this last one for a bit because of what they did and the organisation that did it.

 

What we should do about it is to limit the power of the Public Sector to flout the rules they so love to inflict on the rest of us - but regularly abuse themselves.

 

Have a look at the comments I posted, taken from a Financial Forum, against the SFO pension payment thread on here.

 

I wish I could be more positive - but the evidence is clear.

 

 

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Seems to me this isn't the only thing the banks are in denial over.

They just think this whole economic crisis is a temporary "blip," after which they can go back to raking it in and overpaying each other, as normal.

Trouble is, if the government doesn't get a handle on this, they might still get away with it, at the expense of everyone else.

Whatever happened to the idea of the financial sector serving the real world, oiling the wheels of proper, wealth-creating business? Instead it seems everyone else is there to serve the interests of the financial sector.

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Whilst I agree with what you say Tony, my issue is that sadly, most people see "The Banks" as THE Financial Sector.

 

Whereas in reality - the City of London, the Insurance and Life Office industry etc - which actually make up the REAL Financial Sector are nothing to do with the shenanigans that the banks got up to and those within the wider sector are as appalled as everyone else.

 

I know it is hard - but I would ask that those many, many of us that have been trying to flag up for YEARSs the appalling advice that the banks offered and whose words fell on the deaf ears of the FSA, do not get tarred with the same brush.

 

The FSA is being disbanded because it failed, was asleep at the wheel, was totally bloody incompetent - but until we see a route and branch change of emphasis such that any Regulator ACTS for and PROTECTS the Consumer - rather than protecting the Banks - I am not confident that individuals in the UK get the protection from the very expensive regulation that they deserve.

 

Northern Rock being the classic example - signed off as being run well, such that future regulatory visits would be Triennially rather than annual - and this just six months before we had people queuing on the pavements to get their money out.

 

The FSA bod who gave them a clean bill of health?

 

He received a £640,000 golden goodbye - all of which was paid for directly by the tax payer.

 

The biggest mistake we as a country EVER made was to allow those in government to state that the banks are too big to fail. As a result they are dragging us all down with them.

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