PPI complaints soar at taxpayer funded banks
It has been revealed that taxpayer funded banks such as Lloyds TSB and Northern Rock have been receiving substantial complaints from customers regarding their PPI sales. This particular type of loan payment protection insurance has received significant criticism from both customers and regulators alike and the industry watchdog has already issued a number of warnings. However, Lloyds TSB, Northern Rock and Barclays Bank may well be named in a report later this year where complaints statistics will be issued.
PPI income has proved to be very lucrative for a vast array of UK financial institutions although the regulator has effectively issued the death-knell for PPI, which will be phased out later this year. However, the historic complaint numbers could make uncomfortable reading for a number of UK banks as the regulator gets tough!
Niche areas for the UK banking industry such as PPI and mortgage insurance have proved very lucrative for a number of years. However, the regulator has been very proactive in these areas of late, increasing customer choice where possible and introducing stricter guidelines. Many believe that the ongoing increase in the regulatory framework will backfire on customers in due course with the age of "free banking" rumoured to be coming to an end.
Share this..
Related stories
Gordon Brown moves to protect UK businesses from takeover
Gordon Brown will on Monday release his Labour Party manifesto which will include a pledge to protect UK businesses from foreign takeover, after the Cadbury and Kraft Foods debacle. Despite the fact that a similar move was rejected by Lord Mandelson earlier this year it seems as though the government is looking to tap into UK voter concerns about UK businesses falling prey to foreign investors....
Read MoreGeorge Osborne denies pact with Bank of England
George Osborne, the Chancellor of Exchequer, has today rubbished claims that the UK government has made some form of informal pact with the Bank of England with regards to the level of UK base rates. This comes only 24 hours after Mervyn King, the governor of the Bank of England, suggested that UK base rates could remain at 0.5% for some time to come. So is there some kind of informal agreement?...
Read MoreGreek authorities under pressure from the EU
The EU has today stepped in to support the Greek government which is now running a budget deficit four times the size of any other Eurozone member. The EU economic commissioner Joaquin Almunia has confirmed official support from the EU which has also launched an infringement procedure to ensure that all information reported about the Greek economy is reliable and correct. While the situation in...
Read MoreGordon Brown accused of economic vandalism
The outgoing president of the CBI, Martin Broughton, last night accused Gordon Brown of economic vandalism after increasing the U.K.'s top income tax rate to 50p in the pound. He also poured scorn on the UK government's forecast for the UK economy in the short to medium term suggesting that economic forecasts for 2018 are impossible and are nothing but a PR stunt. This is by far and away the most...
Read MoreUK quantitative easing policy criticised
In a surprise attack by a supposed ally in Europe, Gordon Brown felt the full wrath of German Chancellor Angela Merkel today after she heavily criticised the U.K.'s policy of quantitative easing. Despite the fact that the European Central Bank is also executing such a policy at this moment in time Ms Merkel felt the UK was a valid target for her differing opinion.
While the full ben...