{"id":2474,"date":"2018-09-23T11:14:12","date_gmt":"2018-09-23T11:14:12","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/ppi-fuelling-fraud-culture-says-barclays-boss\/"},"modified":"2018-09-23T11:14:12","modified_gmt":"2018-09-23T11:14:12","slug":"ppi-fuelling-fraud-culture-says-barclays-boss","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/ppi-fuelling-fraud-culture-says-barclays-boss\/","title":{"rendered":"PPI fuelling fraud culture, says Barclays boss"},"content":{"rendered":"\n
\n
<\/p>\n

\"ArnieImage copyright<\/span>
\n FCA<\/span><\/p>\n

<\/span>

Image caption<\/span>
\n
\n Arnold Schwarzenegger’s head was featured in official adverts to highlight mis-selling
\n <\/span>
\n <\/figcaption><\/figure>\n

The PPI insurance mis-selling scandal has turned many Britons into fraudsters, one of the UK’s top bankers has claimed.<\/p>\n

Barclays chairman John McFarlane said it was “inconceivable” that all the claims fuelling a “flat-screen television” buying spree were genuine.<\/p>\n

“The percentage of fraudulent claims is enormous,” he told the Mail on Sunday.<\/p>\n

The Financial Conduct Authority said \u00a332.2bn had been paid to claimants since 2011, with \u00a3353m paid in July.<\/p>\n

But it is thought that the total cost of mis-sold payment protection insurance policies could be around \u00a350bn, and customers can continue making claims until August 2019<\/a>.<\/p>\n

“It is almost inconceivable to think that \u00a350bn was mis-sold,” Mr McFarlane told the newspaper.<\/a> “We have turned portions of Britain into fraudsters.”<\/p>\n

And he accused the government of being complicit in allowing a PPI compensation culture to develop.<\/p>\n

He said: “It was in the government’s interests [for claimants to receive compensation]: consumer spending rose and it weakened the banks, so the government is complicit here in the decline of the City… This is stimulation of the economy by buying flat-screen televisions.”<\/p>\n

Banks have had to set aside billions of pounds to settle compensation claims. In July, Barclays blamed PPI charges for taking a chunk out of profits in the first half of this year.<\/a><\/p>\n

In August, Lloyds Bank set aside another \u00a3460m, taking the amount allocated to settle claims to more than \u00a318bn.<\/a><\/p>\n

As many as 64 million PPI policies were sold from as long ago as the 1970s.<\/p>\n

The policies were designed to cover loan repayments if borrowers fell ill or lost their job.<\/p>\n

Not all of them were mis-sold, but sales were pushed on a huge scale to people who didn’t want or need them or who could not use them.<\/p>\n

The scale of the PPI scandal and its associated compensation claims has prompted concerns that some unscrupulous claims management companies have abused the system.<\/p>\n

As well as using management companies, customers can make claims themselves by complaining directly to their provider or via the Financial Ombudsman Service.<\/p>\n<\/p><\/div>\n


\n
Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright FCA Image caption Arnold Schwarzenegger’s head was featured in official adverts to highlight mis-selling The PPI insurance mis-selling scandal has turned many Britons into fraudsters, one of the UK’s top bankers has claimed. Barclays chairman John McFarlane said it was “inconceivable” that all the claims fuelling a “flat-screen television” buying spree were genuine. … <\/p>\n","protected":false},"author":0,"featured_media":1650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2474"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2474\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/1650"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}