This week in retrospect has been highlighted by news of mis sold products from complex interest rate hedging financial products to mis sold energy deals. And, to make matters even worse, the claims companies that advertise to help consumers reclaim mis sold PPI are now being investigated for alleged abuses and of mis selling their services. It seems as though companies in the UK have gone ‘mis sold’ happy and are looking to close a deal no matter the cost to the customer.Read more
Mortgages April 11, 2012
Recent statistics released by the FSA indicate that the housing market is really not faring as well as it appears to be on the surface. The whole problem resides in something termed an ‘interest only loan’ and these are not always in the best interest of the consumer, especially in the long run.Read more
In recent weeks The Telegraph has been investigating allegations that UK banks have been misselling financial products to SMEs in the UK and there are growing concerns that the amount of reparation will at least equal that of mis sold PPI of recent years. Within the past three weeks evidence has been mounting these banks are selling derivatives under the premise that they are interest rate swaps. Literally thousands of customers have been mis-sold these products without having been given the benefit of relevant details.
Two banks in particular have been mentioned by this newspaper, which include the Royal Bank of Scotland and Barclays. According to Damien Reece writing for The Telegraph the Royal Bank of Scotland has reportedly admitted to selling interest-rate swaps as derivatives and that Barclays did settle out of court in order for details from reaching the public. According to Reese, Barclays had also previously been forced into an apology to the FSA because it had come to light that they had asked their customers to withhold important information from the UK regulator.
According to the investigation conducted by The Telegraph, Professor Emeritus Michael Dempster of the Centre for Financial Research, University of Cambridge, believes that this could be easily as huge as the £5 billion scandal in the misselling of payment protection insurance. The Telegraph reports that the FSA has given them a promise to review the evidence it has been handed but Mr. Reece believes they are not moving quickly enough. During this time the problem is compounding itself which will mean that businesses are incurring even greater losses. He further states that the paper has done more than its fair share of doing the FSA’s job for them.Read more
Insolvency November 14, 2011
It seems as though the debt crisis in the eurozone has far reaching tentacles that have impacted everyone from individuals to corporations to governments around the world. After bad investments in the eurozone debt crisis, MF Global filed bankruptcy and liquidators are now winding down the multinational brokerage.Read more
On the heels of the PPI racket comes another service being offered by building societies and banks in the UK, packaged accounts, which are currently being mis-sold to literally millions of customers. The FSA is currently investigating how these products are being sold and whether or not consumers are being sold a product they are not eligible for.Read more