When the high court ruling in April 2011 caused all of the major high street banks to announce they were putting aside billions of pounds to refund mis-sold PPI it was an unprecedented event in British Banking.
The FSA flexed it’s muscles, for so long thought to be rather weak, like they never had before. Together with the support of the new legislation the all-for-profit mentality of British Banking started to grind to a halt.
The change in the tide was predicted by some. For example the man known as the HBOS whistle-blower, Paul Moore, warned way back in 2004 that the bank was taking excessive risks. He was promptly dismissed and his silence paid for with a six-figure sum, the type of cloak and dagger tactic that has allowed the problem to grow for so long.
Consumers shocked by the extent of the PPI scandal
However for most consumers it came as a shock and that is why so much mis-sold PPI remains unclaimed. It was mis-sold so widely and with such reckless abandon that in many cases customers were not even told it was being bundled in as part of a mortgage, loan or credit card.
Since the lid was blown off the PPI scandal things have continued to get worse for the British Banking industry. Most recently the exposed manipulation of the Libor bank-rate has shown a level of corruption at the top which many might have suspected but few would have predicted would be unveiled so dramatically. Add to this the mis-selling of interest rate hedging products to small businesses and it is painfully clear that the banks are very much about the numbers and not at all about it’s customers.
That is why everybody who has a potential PPI claim should be refunded every penny they are owed and The PPI Team are here to make sure your claim is successful.
What will the next banking scandal be?
With the announcement from Prime Minister David Cameron that there will be a full parliamentary inquiry of the banking sector, alongside a more focused inquiry solely into the Libor market, the magnifying glass is inspecting British banks more closely all the time.
It is likely that other add-on products that are sold in a similar way to PPI will be the next to come under scrutiny. With the competition between banks to capture current account customers (who can then be sold other products) being so fierce it is an area where any morals or ethics fly out of the window. Many customers are now sold ‘premium’ current account products that include many features they don’t need, or like in the case of PPI, insurance that they would never be able to claim on or already have as a singular product.