Debate Magazine

Yet Another Face Palm Moment..This Time - PPI

Posted on the 13 May 2016 by Markwadsworth @Mark_Wadsworth

Here
Of course it bloody is.  The 'government' is entirely to blame for the (non) PPI 'crisis'.  As all of you may know, had you been keeping up at the back, that I have told you before that the bloody government, both itself and its agents, the equally failed FSA and FCA, TOLD the financial services industry to sell PPI. Yep, they TOLD us to sell it.
(Point of information.  We 'sold' about five, yes FIVE, PPI plans. Successful policyholder claim on one - by an owner director of a small limited company that failed. Yes really.  His own firm. Work that out.  No policyholder complaints on the others.  And in dealing with the compulsion to sell PPI on any personal finance business - mortgages in our case - we changed our standard wording in one of our client info documents so that we could demonstrate that we had 'talked about it' to the regulator - if asked  - and then just carried on treating our clients as adults).
What's more we told the Financial Shambles Authority that the whole PPI thing would end in tears.
And then there's the reg-yew-lay-shuns.  These enable, nay encourage, an entirely mechanistic approach to dispute resolution that bears no relationship at all to the due process of law.  Essentially the 'rules' deliberately enable arbitrary decisions, based largely on 20/20 hindsight, by capricious bureaucrats. (BTW, if you print out the FCA rule book it will stand eight and half feet high  - A4 double sided). The effect of this approach is to create a companion opportunity for exploitation by the less than scrupulous to create fake businesses to 'help' people pursue these claims.  Furthermore, when you get a tsunami of such claims it is far cheaper for the target institution to just pay up than to investigate and fight every claim.  We have evidence that claims have been paid where no PPI had actually been sold.  Also, getting £20+ Bn out of Bank capital is helpful to the government as it just gets spent. Never mind that it is a conversion of capital to consumption.  Anyway the government can just print some more money to re-capitalise its crony banks. 
And then you have to take into account the whole Newspeak concept of 'mis-selling', of which there can be no such thing in a free society with personal responsibility.  The Bank is its own agent.  If you buy a product or service from a Bank, Caveat Emptor applies.  If you have doubts that you understand a financial or insurance product you can take professional advice.  That adviser is your agent and takes professional responsibility and has PI cover in case he makes a mistake.
And to back this up I can relate a small vignette that befell Mrs L and me.  Some years ago, soon after we were told to sell PPI, Mrs L asked me to go to her bank with her where she was sorting out a personal loan. I went through the loan documents and spotted that a single premium PPI plan had been automatically added. (Single premium plans paid a very large initial commission, from memory about 25% of the premium).  The premium was in the thousands of Pounds.  'What's this?' I asked. 'Oh', said the bank lady. 'That's the insurance. The government says you have to have that'.  'Erm, no it does not' Quoth I. 'Take it off Mrs L doesn't need it'.   'And two other things, bank person, one, this stuff is going to be the next scandal, and if I catch you forcing any more of my clients to have it I will be down your throats ASAP' (or words to that effect).
The whole PPI farrago stinks. It is a litany of massive government and regulatory failure.  We've known this for years.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Gorgeous Video Fairytale Wedding Mykonos

    Today, we’re sharing with you a fairytale wedding video in Mykonos that you will love! Gaelle and Habib sealed their love in a wonderful outdoor venue... Read more

    6 hours, 29 minutes ago by   Eleni Balkouli
    LIFESTYLE, TRAVEL, WEDDING
  • Cameraless and Twitchy

    Cameraless Twitchy

    On the advice of my friend Cory, I've taken my camera to a professional for cleaning. (Who knew fungus could grow on lenses?) I'll be cameraless for about ten... Read more

    7 hours, 1 minute ago by   Vickilane
    CREATIVITY, PHOTOGRAPHY
  • Boho Indian Styled Shoot on the Beach

    Boho Indian Styled Shoot Beach

    Today, we’re sharing with you a boho, Indian styled shoot by the beach, so if you’re a free spirit and a boho-lover you’re going to love this as much as we do! Read more

    8 hours, 1 minute ago by   Eleni Balkouli
    LIFESTYLE, TRAVEL, WEDDING
  • Summertime Neurology Blues

    Summertime Neurology Blues

    We hit the road last week for another trek to see the neurologist. We usually enjoy these long rides up into the heart of Arkansas, but it seems we can’t... Read more

    11 hours, 7 minutes ago by   Livingwithss
    HEALTH
  • My New Boyfriend and Current Running Status

    Boyfriend Current Running Status

    Long time, no blogging. Well, still not running over here. Turns out the PT wants me to be able to do single leg squats on my "bad leg" for two minutes before... Read more

    The 19 June 2018 by   Brisdon
    ATHLETICS, FITNESS
  • Sedo Weekly Sales Led by SecureChain.com

    Sedo reported their weekly sales and SecureChain.com led the way at $30,000. OnlineCasino.mx was the number two sale at 19,600 Euros. ($22,715). 59 .com sales 1... Read more

    The 19 June 2018 by   Worldwide
    BUSINESS, TECH
  • Woodinville Straight Bourbon Review

    Woodinville Straight Bourbon Review

    Woodinville Straight Bourbon is made in Washington and the distillery is one of LVMH’s (Glenmo and Ardbeg) latest acquisitions. Read more

    The 19 June 2018 by   Josh Peters
    DRINK

Magazine