New Incentives System Should Be Imposed to Banks

Financial Services Authority Managing Director Martin Wheatley stated in his last speech that the main reason for PPI mis selling is the “greed encouraging” banking incentives and bonuses system that most UK banks have. Based on their investigations of high street banks, the FSA concludes that banks will need a new incentives system to restore reputation and order in the selling of financial products.

Former bank representatives and financial advisers from different banks claim that they were trained to persuade customers to purchase high-priced financial products to gain bonuses. Wheatley stated that customers were not getting a fair deal out of the situation.

The payment protection insurance claims conditions in the United Kingdom continue to improve amidst the high number of claims received by the Financial Ombudsman Service (FOS) in the past few months. The FOS states that they’ve seen an increase of 27% in the last six months, compared to 2011, having 400,000 claims against high street banks.

PPI or payment protection insurance is designed to repay loans, mortgages and credit cards in the event customers become sick or unable to work due to redundancy. The High Court has ruled that all PPI should be refunded to customers who cannot claim for PPI that was wrongly sold.

The FOS states that Barclays has 19,000 claims, Lloyds has over 22,000 and Santander has received 15,000, all in the last month.

Claims handling companies, continue to extend support for customers mis sold PPI. They offer counseling,advice and claiming services for customers willing to get all the refunds they deserve. It is advised that you seek expert help before making a claim.