A member of parliament has raised concern that the overall liability for payment protection insurance claims and its mis-selling could reach £4 billion.
Jonathan Evans estimates that the complete bill of mis sold ppi could be in the billions range, with over the years the significant figures becoming colossal.
The MP said: “I’ve seen indications that in due course the overall liability in relation to PPI is likely to be not in the hundreds of millions but the billions [of pounds]. I heard a figure of perhaps even £4bn mentioned as an end game figure.”
MPs and members of the House of Lords were told that although compensation is important, the current structure of the Financial Services Compensation Scheme (FSCS) means professional insurance brokers are compensating the failures of a wide variety of firms; from banks and mortgage brokers to car dealers, doctors, dentists and vets.
The Financial Services Authority is being asked to begin consulting on a new funding model for the FSCS in time to have new rules in place for their 2012-13 financial year.
The funding model will separate professional insurance brokers form other sellers of general insurance to remove the cross-subsidisation of one class by others.
For help managing your mis sold payment protection claim, speak to Belmont Thornton today.
Similar Posts:
- Insolvency advice services
- RLI Corp. Downgraded
- Is Your Mortgage Loan Broker Properly Licensed and Complying With The Law?
- Westpac Altitude Business Gold Credit Card
- Customer Service Duties for “Mere Posters”
