Tuesday, 7 October 2008

The Great PPI Robbery

It's stunning enough to see yet another hefty fine for misselling "payment protection insurance", or "PPI", let alone one that costs Alliance & Leicester £7m of precious capital in these troubled times.

But, worse still, the findings suggest that the FSA let this go undetected for 2 years, leaving 210,000 consumers to find the extra £1200, plus interest in the meantime.

Meanwhile, the Competition Commission has also waited until now to get tough on banks who it alleges have raked in a combined £1.4bn in "excess profits".

Given the pace of enforcement to date, is it conceivable that A&L will be the last bank caught ignoring financial regulation?

PS: the FSA fined Egg £721,000 in December 2008, for mis-selling 106,000 PPI policies to its card customers at an average of £156 each for the period Jan 2005 to Dec 2007.
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