PPI Claim News - 25/3/2010
FSA criticised for missing payment protection scandal
The Financial Services Authority (FSA) has been criticised for its failure to realise the immense payment protection insurance (PPI) costs that were being levelled on consumers before banks and lenders were exposed.
According to moneymarketing.com, city minister Lord Myners believes that the financial watchdog should have been more alert over PPI charges because of the amount of revenue they were creating for lenders.
At a hearing organised by Which? last week, he is quoted to have said: "One
would have thought that, perhaps with hindsight, the FSA should have seen PPI as being a potential abuse."
Lord Milner added that the evidence of PPI's profitability for banks "ought to have indicated to the FSA that perhaps this market is not functioning", a scenario which was ultimately to the disadvantage of consumers, the website reports.
Speaking at the Future of Banking Commission, the financial services secretary also called for banks to return to "old style" values with more decisions being taken at a branch level rather than remotely.
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Charles Baker
Charles is a reputed financial analyst with almost decades of experience under his belt.
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