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PPI's Dark and Terrible Past
| Britain, much like the rest of the world, has gone through a difficult period of financial uncertainty for the past four years, and it doesn't seem like the recession is about to relinquish its wicked grasp on us just yet. You can see evidence throughout the country - walk down almost any high street and witness the proliferation of boarded-up shop fronts and "Everything Must Go!" signs on hard-hit stores, which seem to be perennially closing down. Redundancies are rife, unemployment levels are terribly high, people are tending to be more careful with their money and the media is reminding us daily of economic issues in the country (unfortunately, the forecast is bleak). While the recession has arguably been caused by how our economic system is linked to problems with the wider, global capitalist system, people really like to blame the banks for the recession- blaming it on their greed and their flamboyant "rip off" attitude to how they treat their customers. People looked on incredulous when the banks initially asking to be bailed out to the not shabby tune of £200 billion in emergency funds and were stunned when they turned around to ask for more shortly after. The Banks' Decline in Popularity It's safe to say their popularity was already pretty darn low before the whole PPI debacle crept up on them and made them even more immensely unpopular. People are angry and justifiably so, especially when it was revealed that this PPI mis-selling has gone on for years, even at the height of the recession when many unfortunate people were desperate and suffering the full-force of its detrimental effects. PPI mis-selling is just one more thing that has angered British consumers in these tough times and it isn't just isolated to a few customers at a few banks. It's a far-reaching scandal that has affected all the major banks and millions of people- costing the majority of them each thousands of pounds in premiums for utterly useless insurance. Of course, PPI mis-selling had been happening long before the country's economical bubble burst, and disgruntled consumers and Which? had caught on long before the PPI scandal become big news - however, it was only after banks' other indiscretions came to light that the issues surrounding PPI mis-selling fully moved in to the public eye. Financial Services Authority Thankfully, the FSA stepped in and brought the mis-sold PPI case to the High Court which, in April 2011, ruled in favour of wronged customers and ordered banks to stop holding up claims and start repaying. They were even told to actively contact customers who may have been victims of PPI mis-selling to let them know they may have been mis-sold PPI in order to help the process move along and make sure customers receive what they rightfully deserve. Even though banks tried to appeal the decision, they finally succumbed not long after, biting the bullet and setting aside billions of pounds worth of provisions to ready themselves for the onslaught of angry PPI claims customers who want their premiums (plus interest) back from the banks. While we have yet to see whether banks uphold their promises to treat claims fairly, quickly and efficiently it is definitely certain that aggrieved customers are becoming more aware or the scandal and large sums of money has already been given back, with the FSA reporting that the redress for claims in 2011 reached £1 billion - a good sign. If you feel you have a rightful claim, go get ‘em. Justice is on your side. |
About the Author
Bryan Lewis has been following the PPI scandal for some time, writing for one of the UK's leading claims management companies.
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