Good to see some sense being talked in the financial press over the weekend as Jeff Prestridge of This is Money brought us this piece:
The mis-selling of useless payment protection insurance may have been all but eliminated but the scars remain.
Last week, the Financial Services Authority hit Lloyds Banking Group with a £4.3million fine over PPI. Not for rampant mis-selling but for failing to pay compensation quickly enough.
Between May 2011 and March 2012 about 140,000 customers did not get their money in the required 28 days following notification from Lloyds that compensation was coming their way.
Not quick enough: Some Lloyds customers had to wait for more than six months for compensation
The fine did not take Financial Mail by surprise. In December 2011 and January 2012 we highlighted the problems many Lloyds customers were having in getting PPI compensation.
Indeed, at the time, we prised an admission out of the bank confirming that some customers were suffering lengthy delays, although it was somewhat economical with the truth.
It claimed that under five per cent of customers were affected by delays beyond 28 days. Yet as the details of the FSA fine confirmed last week, delays were being suffered by nearly a quarter of customers identified by the bank as eligible for redress.
And 8,800 had to wait more than six months for compensation to arrive. Unacceptable on any level.
In light of such dilatory behaviour, it seems a bit rich for the banks to be asking the regulator to impose a spring 2014 deadline for the public to submit all PPI claims.
The banks would be wiser putting all their energies into cleaning up the PPI mess they have created. Only then should they receive a receptive ear from the regulator.
Lloyds Fined for PPI Delay
Lloyds Banking Group has been fined £4.3m for delaying compensation payments to customers over Payment Protection Insurance (PPI) mis-selling.
The Financial Services Authority (FSA) said that 140,000 customers did not receive their payments promptly.
Hundreds of thousands of people have received redress after they were mis-sold PPI they did not want or need.
Lloyds, which has apologised, is the first bank fined by the FSA specifically for delaying payments.
The bank said it had been surprised by the influx of claims last year.
"We had not fully anticipated the volume of complaints to be processed at the outset and experienced some administrative errors as we scaled up our systems and processes," said a spokesman for the bank.
"We acknowledge that this led to some customers not being compensated on time and we apologise to those customers whose payments were delayed."
For more on this please visit the BBC News website.
The Financial Services Authority (FSA) said that 140,000 customers did not receive their payments promptly.
Hundreds of thousands of people have received redress after they were mis-sold PPI they did not want or need.
Lloyds, which has apologised, is the first bank fined by the FSA specifically for delaying payments.
The bank said it had been surprised by the influx of claims last year.
"We had not fully anticipated the volume of complaints to be processed at the outset and experienced some administrative errors as we scaled up our systems and processes," said a spokesman for the bank.
"We acknowledge that this led to some customers not being compensated on time and we apologise to those customers whose payments were delayed."
For more on this please visit the BBC News website.
More Woe for Banks as FSA warns on Misleading Advice
High Street banks stand accused of gambling the hard earned savings of customers by failing to stick to rules for financial advice, following an undercover probe by the City watchdog.
In another day of shame for the industry, the Financial Services Authority has published a devastating dossier exposing how salesmen at six top banks gave poor and misleading advice that put customer nest eggs at risk.
One bank, Santander, is understood to have been referred for further enforcement action by the regulator and today announced it has suspended its face-to-face investment advice service until further notice.
Read more: here.
In another day of shame for the industry, the Financial Services Authority has published a devastating dossier exposing how salesmen at six top banks gave poor and misleading advice that put customer nest eggs at risk.
One bank, Santander, is understood to have been referred for further enforcement action by the regulator and today announced it has suspended its face-to-face investment advice service until further notice.
Read more: here.
Barclays Increase PPI Provisions
Barclays has increased the provisions to cover two mis-selling scandals by another £1bn.
It relates to the mis-selling of interest rate hedging products sold to small firms, and payment protection insurance (PPI) schemes.
Following a review, the bank said total provisions for the scandal involving interest rate swaps were now £850m, and £2.6bn for the PPI schemes.
The figure comes ahead of the bank's full-year results due on 12 February.
The Financial Services Authority (FSA) last week ordered the UK's major banks - Barclays, Royal Bank of Scotland, Lloyds, and HSBC - to review all their sales of interest rate hedging products, and provide redress where mis-selling occurred.
The products were offered to thousands of small firms - including pub owners, haulage firms, care-home operators and vets - when they asked their bank for a loan.
For the full story visit the BBC News Website
It relates to the mis-selling of interest rate hedging products sold to small firms, and payment protection insurance (PPI) schemes.
Following a review, the bank said total provisions for the scandal involving interest rate swaps were now £850m, and £2.6bn for the PPI schemes.
The figure comes ahead of the bank's full-year results due on 12 February.
The Financial Services Authority (FSA) last week ordered the UK's major banks - Barclays, Royal Bank of Scotland, Lloyds, and HSBC - to review all their sales of interest rate hedging products, and provide redress where mis-selling occurred.
The products were offered to thousands of small firms - including pub owners, haulage firms, care-home operators and vets - when they asked their bank for a loan.
For the full story visit the BBC News Website
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