Banks could face fines on perks that promote mis-selling

What is the point of fining a bank (or any large institution for that matter) they just pass the fine onto the customers.

- NG, France, 17/6/2012 19:49

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Now we have an army of claims company salesmen doing exactly the same thing, ringing me on a number which is registered with the Telephone Preference Service and telling me I can claim for a refund of PPI which I've never even taken in my 30 odd years working with the bank. They don't tell the customers that they can be locking themselves into making payment to the claims management company for a couple of years - I know as I see customers regularly making these payments at the counter. I see people who no longer bank with my bank or who have no idea whether or not they have even had any loan with the bank asking for details of accounts which may not even have existed while existing customers stand and wait to be served. After 35 years service my salary is £16.5k but if I'd joined the police or fire service or worked for my local authority I'd be retired now with a pension which is probably more than my net income, out of which I pay full rent etc and get no state benefits.

- Bank worker, UK, 17/6/2012 19:35

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I find it offensive that branch staff in general are blamed for mis-selling of Creditor Protection Insurance. When I interviewed customers wanting personal loans most of them would sign anything just to get the loan. However we were required to complete reams of paperwork relating to eligibility for the protection (working min of 16 hours per week, not on temp contract, not away from work through accident or sickness (pre-existing condition preventing claim) explain conditions and exclusions to customer and lots more) and that was before the loan agreement was signed. We were required to complete a minimum of 75% of loans with protection as part of our annual performance targets or the individual member of staff (myself many times) would not be eligible for a pay rise at the end of the year - we DO NOT get inflation increases every year like the public sector and our union, UNITE, are rubbish at negotiating pay deals, they got us into performance based pay.

- Bank worker, UK, 17/6/2012 19:27

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NOW can anyone remind me of the name of the `educated fool` at the Bank of England who said a few days ago that banks should charge `realistic` fees for current accounts and other services? He is going to the FSA. SO? A bank charges for a current account with`bolt on extras` because the FSA tells them to AND THEN because some people might not need the `extras - like pensioners without mobile phones who do not need insurance or do not need breakdown cover because they do not have a car - complain that they have been mis-sold a current account with charges when a basic account would be more than suitable for them and Guess WHAT - The FSA Fines the Bank!! Talk about left hands not knowing what the right hand is doing!!!

- Roy, Billericay, 17/6/2012 14:28

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Banks along with most FSCs will stoop to any low type of selling to get money into their coffers. That fact their wares range from not suitable to downright dodgy matters not to them. This idea of sales rising by 30 to 50% or more year on year is not realistic anymore, but try telling these bosses that. It mainly stems from American selling ways that have come over here, "get the money in at any cost or you are out" syndrome is still strong and until that changes, nothing else will. I find it strange that they don't sell good value items, if they did then surely they would sell more?, now why don't they try that?, because they make more out of scams, and its all about the money ......

- Alan, Huddersfield, 17/6/2012 11:55

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Also, implement bonus clawback systems!

- A N Observer, Midlands, 17/6/2012 09:57

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I agree john it does seem we are now at the limit. Im 70% in metals myself and self sufficient enough food wise so i dont have to put my trust in the government to keep the supermarket shelves stacked. I dont think our economy can be saved this time. Most people think this is just another boom and bust problem, in reality nobody has seen a real bust yet, we have been building up to this for years. Bubble after bubble has kept the economy going but now we are at the stage were the housing bubble has burst and there is nothing left to start the next bubble. The economy collapsed 5 years ago and the government and central bank did everything it could to keep it going, we are now at the stage were there is nothing left to save the economy except to ask the public for their savings via infrastructure bonds just to give the illusion of fixing the economy. Most british people think it cant happen in britain because its britain and things like that dont happen here. NORMALCY BIAS

- frankie mcgill, manchester, 17/6/2012 08:48

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I have helped resolve millions of cases of mis-selling in the 1990s and 2000s. Fines, the resulting bad publicity and even the massive cost of putting things right have not prevented this sort of behaviour from happening. PPI was being massively mis-sold at a time when the industry was being forced to pay £5bn to fix mortgage endowment mis-selling. The banks knew they were mis-selling it. Their public affairs people had it as one their major risks in 2005. The people who make the mis-selling happen are not really affected by the punishment if the worst happens. The FSA need to change two things. 1. Start fining directors personally not the shareholder or the taxpayer and ban them from working in the industry. 2. Waiting for millions to be affected before calling time on the mis-selling.

- Alan Higham, London, 17/6/2012 08:31

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Good post, Mr Mcgill. Part of what we are seeing at the moment is the fiduciary basis of money being tested closeA to the limit by the Ponzi scheme of fractional reserve. May be a good time to get out of curency and into commodities - cases of baked beans and bottled water for instance....

- John Bull, UK, 17/6/2012 07:59

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Banks could face fines............doesnt really matter when you can use fractional reserve banking to create money out of thin air to pay them. Once the majority of people in britain stop banging on about bankers bonuses and start to look at how money is actually created then that is when the people will start to wake up to the fact that they live in a pyramid scheme. The bankers bonus stories are everywhere, banks being fined stories are everywhere, never ever any mention of fractional reserve banking. Money as debt on youtube will show you how fractional reserve banking works. Fractional reserve banking is responsible for the state of todays global economy. We use a fiat currency which means our money is backed by nothing, every fiat currency in the history of mankind has collapsed, every single one of them. britains has survived the longest, will it survive what we are facing now...............I very much doubt it.

- frankie mcgill, manchester, 17/6/2012 07:29

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