In an effort to claw back some of money lost from sales of PPI, MBNA have restructured their credit card payment terms. On a selection of accounts, MBNA will expect customers to pay back at least 1% of their outstanding card balance per month, meaning someone with 5000 euros on their card would pay 50 euros per month rather than the current 7 euros. Its yet another example of banks tightening their operations in hard times and a by product of PPI mis-selling.
It was surprising to read (with the Judicial Review decision looming), that the Building Society Association was positively supporting the idea that compulsory mortgage payment protection insurance be added to accounts during the arrangement process. The idea is sound in that it could mean fewer repossessions and ease the burden on state benefits and housing, but inevitably, it will be added to mortgage accounts of customers who will not benefit from it.
The FSCS have imposed yet another levy on banks and IFAs to cover the cost of compensating customers. In particular, there has been major consideration of the need to support the huge gap in PPI mis-selling compensation and some IFAs are now found to be paying huge levies for the mistakes of others. It is unfortunate for some that these increases may continue over the next two financial years - especially as the funds are used for no other purpose but to protect firms which have made their money, are no longer trading, and need to be bailed out by others.
Finally, Martin Wheatley, the outgoing chief of Hong Kong’s financial regulator, will head the UK's new consumer champion authority (Consumer Protection & Markets Authority) when it is created next year. Mr Wheatley will join the FSA in September as managing director for consumer protection and markets. When the FSA is broken up at the end of next year, Mr Wheatley will serve as chief executive of the Consumer Protection and Markets Authority.
If you think you have been mis-sold a Payment Protection Insurance policy, do not hesitate to contact us via www.ppireturn.co.uk.
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