PPI compensation could total GBP3billion
Banks could be forced to pay back billions of pounds in compensation to customers who were mis-sold Payment Protection Insurance (PPI). The Financial Services Authority (FSA) has been investigating the PPI industry for five years, and says in that time it has found “wide and deep evidence of weaknesses in PPI sales”. Following its investigation, the FSA has published a policy statement confirming a package of measures to protect consumers in the PPI market and has given lenders until December 1 to comply. The FSA estimates that the measures, which include rules forcing lenders to ensure that complaints are handled properly and redressed fairly, will force the financial services industry to deal with about 550,000 complaints a year for the next five years. Read more…