PPI Claims against banks has reached a record high due to banks mis-selling PPI insurance to consumers, and in many cases without the consumers knowledge.
So who is to blame for this error, and who should have stepped in to cut the losses sooner? One major prominent figure to step up and speak out on the issue was BBA’s Eric Leenders, who claimed the banks had complied with regulations which were in place at the time, and if the insurance industry had stepped in and had questions over legitimacy of the sales practices the banks were using, they should have stepped in and stopped the banks when the errors were occurring.
This claim by BBA is correct; the insurance companies were aware of the increase in sales of PPI during the height of the mis-selling scandal, and by them stepping in and questioning the banks when these scandals were occurring, they could have saved thousands of consumers from being scammed, and being charged for these PPI policies which they were unaware of.
Although the blame placed on the insurers is still questionable, and the extent of their error is debatable, if they had stepped in sooner, many consumers could have been spared these costs.
