Published on July 23rd, 2014 | by Pete0
Payment Protection Insurance – The Scandal That Lifted The Lid
The mis-selling of Payment Protection Insurance (PPI) and subsequent High Court case was seemingly a momentous chapter in UK banking history. It was the uncovering of unprecedented malpractice and resulted in billions being refunded to financial consumers sometimes through a ppi claims calculator.
But is the PPI claims scandal going to be remembered as more than simply a compensation scheme? Is it also a spotlight shone on the banking industry that they would like to be turned off?
Six scandals and counting
Since the PPI claims scandal we’ve had the LIBOR scandal, mis sold swaps, lax money-laundering regulations, insider trading and now the chief executive of Royal Bank of Scotland has warned that an investigation into foreign exchange trading could result in a major compensation bill for multiple financial institutions.
So it seems PPI was the tip of the iceberg, the scandal that could be ignored the least, probably because it’s the only one that directly affected joe public. But in coming clean about mis-selling PPI and feeling the subsequent reputation damage, the banks have put themselves in the firing line for the worlds media and consumer campaigners who are keen to expose more dirt.
‘It’s not a small one’
Talking about the forex scandal, chief exec Ross McEwan, said: “We’re going through just millions and millions of emails, chat rooms, conversations, to see what actually went wrong. And unfortunately I have the feeling that it is sort of a Libor case again.”
When asked if it could be a bigger than the mis sold PPI scandal or LIBOR he commented: “I don’t know at this stage. It’s not a small one.”
Putting the PPI claims scandal in the shade
The London forex market has a turnover of £2.9trillion a day, making it the world’s largest. The potential scandal was highlighted by allegations that traders had been manipulating prices, leading to three traders being suspended by Royal Bank of Scotland.
With a turnover of £2.9trillion a day, the investigation into the forex trading and subsequent compensation could easy put LIBOR and PPI combined in the shade. And it’s not just banks that would be affected, brokers, advisers and hedge fund managers would all have to put their hands in their pockets. Our advice: watch this space.
For advice on making a PPI Claim, visit PPI Claims Calculator.