Credit Compensation
April 1, 2010 by JoelC2009
In the UK the financial ombudsman deals with complaints about fiscal matters. It seems that one of the biggest topics of complaint has been about controversial loan insurance sometimes called PPI.
There’s now a whole industry springing up for credit compensation and credit repair solutions because there are so many complaints.
Something like 25000 consumer complaints have been registered, all relating to the possible mis-selling of PPI, or payment protection insurance. And with a possible credit claim against institutions they’re being scrutinised carefully.
Indeed a number of institutions have been fined for such mis-selling. The idea behind PPI is simple. It works to cover repayments on loans or credit cards if you can’t pay, either through illness, or unemployment, or a number of other causes.
To a prudent borrower that sounds very sensible. But in many cases lenders have been accused of mis-selling the protection. The Competition Commission discovered that in 2006 something like 1.4 billion pounds out of 3.5 billion pounds of insurance was actually “excess
The FSA has said that they believe that financial services companies have been too slow to stop mis-selling PPI. With 1.4 billion pounds in “excess” profits it’s very tempting to speculate as to why.
One thing is certain, the number of people complaining is likely to grow as more people discuss the situation. And the first successful claims made will inevitably fuel the growth of more claims from other people who might have been affected.
woah that’s pretty crazy lol and i live in america
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The FSA Poll above astonishingly has 10 clicks FOR the FSA and only two against. And the politicians complain about voter apathy?
Oh well. I can only assume that those clicking yes have missed the following from Ian Pollock of the BBC. Once they have read it, they can go back to doing what they do best.
Sticking their heads in the sand.
ANALYSIS
By Ian Pollock, personal finance reporter
It is amazing it has taken so long for the FSA to decide it should actually prevent dodgy financial practices getting off the ground.
What, you may ask, has the FSA and its predecessors actually been doing?
The past 20 years have seen millions of people mis-sold mortgage endowments, personal pensions and payment protection insurance.
Consumers complained, and the media reported, as these scandals emerged; the FSA only acted once the damage was done.
Now, with its future threatened by a possible Conservative government, it has decided to raise its game.
What a pity it has taken so long to accept what most people think regulation should be all about.
P.S. This is what the EU is good at, and should be applauded for:
“Inefficient and expensive energy firms will face legal action over their behaviour, the European Commission's competition office has warned.
The comments were part of a report into Europe's energy markets, which added that splitting supply, generation and distribution would boost competition.
The Commission's competition czar Neelie Kroes said the report would make “uncomfortable reading” for some firms.