More Misselling Scandal
Perhaps it was too much to ask to expect the misselling of Payment Protection Insurance by elements of the financial industry to be the only misselling scandal of the first decade of the new century. The recent news that a bank has been fined several million pounds for misselling investment products to elderly people demonstrates why many people are profoundly suspicious of organisations selling financial services. At least in this case, the bank will have to pay compensation that could total some £30 million.
This may seem to be a drop in the ocean when compared to the several billion pounds financial institutions have had to set aside as compensation for missold PPI, but it is another pointer to poor regulation of an industry happy to take the money and would prefer not to give it back.
It took a long time for banks to admit any culpability over the misselling of PPI, and then only because the Financial Services Authority pursued as far as the courts, where the banks finally backed down. After setting aside huge sums of money to compensate those who were missold the insurance, it is important that anyone who believes they have a case against the organisation that agreed a loan, and then sold PPI on top, begin a claim for compensation. If an offer of compensation is made, it should be checked to ensure that it is a fair offer before being accepted. Claims can be made directly by individuals, though getting an expert eye on the case may be useful if there is a disagreement between the claimant and the loan provider.