PPI Claims are going to cost banks billions in compensation to consumers.
This industrial mis-selling which took place was not going unnoticed in the insurance sector, yet nothing was being done, and consumers were paying the price; at least from Financial Ombudsman Service’s perspective (FOS). An FOS spokesperson claimed that the insurance industry is in part responsible for these mis-sellings, since they did not take a proactive role and stop them from continuing.
The insurance industry has been seen as less culpable in the eyes of most people, even though they had knowledge in the mis-selling which was occurring, and they should also be held accountable for their errors and not stepping in sooner. The insurers had a responsibility as part of the product delivery to ensure their policies are sold in accordance with regulations and FSA/FCA compliance requirements.
Although most of the blame has been put on banks, for charging consumers with these huge PPI insurance premiums, and not letting them know they were being charged, or not informing consumers they had the option to stop paying for the coverage, the insurance sector had a duty to step in, and failed the consumers in their duty to provide these policies in a fair manner.
