Worried banks seek ways to gain “lost” profits
- 10TH JUNE 2007
Despite being under the watchful eye of the Financial Services Authority those companies who are selling payment protection insurance (PPI) unfairly do not appear to be worried. With many firms having been caught out playing unfairly and duly fined, those who stand to lose large profits from selling payment protection insurance have now turned their attention to seeking ways in which they can regain the profits they stand to lose once the payment protection insurance industry has undergone it’s “shake-up”.
For the high street banks and building societies the crackdown on the payment protection insurance sector has come as a shock. However in order to recoup profits they are now turning to measures such as putting charges on current accounts, which undoubtedly heralds the start of the end of free banking here in the UK.
It is also thought that extra charges will be put on things such as overdrafts and those who frequently write and receive cheques will suffer too.
The general feeling within the finance industry is that this might only add to people’s debt problems further, which means that the need for consumers to protect their credit repayments will be greater and so begins a vicious circle.
With our society becoming more and more debt-ridden, anyone with borrowing such as a mortgage, loan or credit card should consider protecting themselves against the financial ramifications of becoming unable to work due to illness, accident or involuntary redundancy.
Standalone provider British Insurance is a staunch believer in putting the consumer first and the head of the company Simon Burgess has never held back when it has come to speaking his mind about the big bank “rip-off”, so for your payment protection needs make sure you have a word with Simon and company before purchasing your policy.
