One of the things that has been asked recently by one of our readers is the question: “what happens to financial corporations that miss-sell payment protection?” “Do they receive some form of punishment?”
Good question, with some direct answers about a variety of huge corporations, and what they had to endure as a result of the problem.
First of all, yes many financial corporations have received consequences for their various different practices around miss-selling ppi, and there are various documented cases of this happening.
The main way in which these companies face the consequences of their actions is through fines, the FCA/FSA has issued fines to multiple companies that miss sold payment insurance.
These include but are not limited to the following examples.
Lloyds TSB were fined £4.3m for delaying the processing of claims, this was an initiative that was passed by the FSA and was raised in a report detailing the complaints and dissatisfaction expressed by some of the customers that had tried to claim compensation.
Some of the issues that were mentioned included “delaying the processing of the complaints” and also “rejecting cases that should have been completed and paid out”
Co-op bank were also fined £130,000 by the FSA for “delaying ppi complaints” and generally refusing to co-operate with the consumer in regard to claims they wanted to make against them.
There have been other cases of fines being put in place due to ppi miss-selling and also the issues with the banks’ conduct in attempting to ignore customer complaints.
So the short answer is, yes the banks are held to account on their actions, as are the other corporations that have ripped-off the public in this way.
Not to mention the payouts themselves, there has now been over £20bn paid out to the general public in ppi premiums, and interest and this will continue on for some time.
Lloyds bank seem to be the ones that have been hit the hardest, with over £7bn paid out to their customers that they pushed their insurance policies on to over the decade-long escapade.
Barclays have also paid out sums in the billions (£4.85 billion) along with HSBC (£1.8 billion) whose’ profits were deeply affected by the sheer sums of money they were forced to pay out to the public.
Anyone wondering about the banks being brought to justice over their practices shouldn’t bother, this has hit the corporations where it hurts and will continue to do so until most of the people who have been sold this product under a false pretense are refunded in full plus interest.
Should you require assistance with a potential case that you would like us to look at on a no win no fee basis, get in touch with us so we can investigate that for you, we have experts on call & ready to help.