A scam made famous by HSBC’s U.S. predatory lender Household International is in the U.K.
The OFT has announced an investigation into PPI (Payment Protection Insurance) mainly involved with the transparency of the products and the pricing. The complex nature of PPI and a lack of choice mean that consumers are less likely to shop around. It also said lenders were adopting high-pressure sales techniques to persuade customers to take out PPI. Barclays Bank has begun making cash refunds just as the regulators are moving in. Barclays’ surprise refunds follow an internal review of its PPI book
The Financial Services Authority has also warned that, in a series of supervisory visits, one in three companies assessed was failing to comply with rules designed to stamp out mis-selling brought in at the beginning of this year. A recent secret investigation by the FSA raised significant concerns. In many cases PPI being automatically included in the loan quote without customers being told cover was optional.
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