Q. I know that this subject may not be part of your world, but am I right in thinking that a major High Street Bank has been fined over £1 million for selling something called PPI?
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Perhaps the £1 million fine is very affordable!
In researching this, we were quite staggered at the profits the banks make from this product. Apparently PPI sellers over the last decade have made £35 billion, yes billion, profit!!
PPI stands for Payment Protection Insurance. Basically, if you take out a loan, you can insure against you not being able to repay it due to illness or redundancy etc. Also, if you buy a computer in a shop, you can insure agains a fault developing within 3 years or so by paying an amount along with the cost of the gadget.
This type of insurance is viewed as a rip-off by many, and for example was covered by the Daily Mail in a campaign fairly recently.
A. Yes you are right. A High Street Bank has indeed been fined this amount.
Banks seem to be involved in all sorts of shenanigans these days. What on earth is this all about?
About Graeme Urwin
