Payment protection insurance is the biggest financial scandal in the United Kingdom. With no signs of stopping, it is already around £23 billion in total. Meanwhile, RBS, HSBC and Barclays are adding £8 billion more for the compensation package, bringing the estimate to more than £28 billion in total for the next few years.
However, packaged bank accounts is rising to become the next mis sold PPI financial scandal. Today, 75% of complaints from claims management companies cover packaged bank accounts.
According to a research by YouGov, packaged bank accounts have been mis sold to at least one in five banking customers. Many customers were given misleading information. Some thought the additional perks of the packaged bank accounts, such as travel insurance, were a requirement, given that it is a packaged deal. However, many were also ineligible for the perks.
The Financial Ombudsman said PBA mis selling may be overhyped. Most cases of the FOS proved to be good value for the money as many customers have also found the benefits useful and cost effective.
The Financial Ombudsman also praised banks for an “encouraging improvement in the way some banks investigate and deal with PBA queries, as compared to its approach to PPI grievances.