A joint study by Cass business school and think tank New City Agenda estimates that damaged lender reputation is set to hit the next generation. The study suggests that the rising number of mis-sold Payment Protection Insurance (PPI) claims – a misdemeanour that has so far cost British Banks £27bn – is to blame.
The report goes on to say that this mis-selling was largely due to an ‘aggressive sales culture’ which saw incentives for employees to earn ipods, cash and even Wimbledon tickets for selling the most PPI policies.
The British Bankers Association (BBA) said that banks ‘had made some progress in rebuilding public trust’, but is this too little too late?
The FCA believes that a cultural change is needed, but as Barclays CEO, Antony Jenkins, admitted over 12 months ago, ‘Trust is a very easy thing to lose, and a very hard thing to win back.’
The way that lenders respond to these claims could well make a big difference to how trust is rebuilt for the future. And with the total amount reclaimed by customers now at £16.9bn since January 2011 (according to the Financial Conduct Authority), this mistake is proving to be a very expensive one.
If you think that you might have a PPI claim, simply complete our PPI Claim Form and a member of our assessment team will be in touch.
BBC: Bank Culture ‘will take generation to change’, says report: 26.11.14
FCA: Monthly PPI refunds and compensation: 23.12.14
The Guardian: Banking’s toxic culture ‘will take generation to clean up’, says report: 26.11.14
The Guardian: Barclays boss admits it could take 10 years to rebuild public trust: 31.12.2013