PPI mis-selling investigation continues

The Central Bank of Ireland continues to oversee a significant investigation into mis-selling of payment protection insurance by Irish banks.

Bank

Banks continue to review their PPI sales practices as part of a wide-ranging review of possible mis-selling

The sales practises at ten banks are under investigation, including:

  • GE Money (part of the US multinational),
  • Ulster Bank (part of UK-based RBS Group),
  • Bank of Scotland (Ireland) (part of UK-based Loyds Banking Group),
  • Danske (part of the largest bank in Denmark),
  • RaboDirect (part of Dutch banking giant)
  • KBC Bank (Ireland) (part of Belgian based KBC Bank).
  • Bank of Ireland,
  • Allied Irish Banks,
  • EBS (now part of AIB) and
  • permanent tsb,

All of the firms are currently undertaking reviews of their PPI sales since July 2007. However, the word on the street is that the investigation is nearing completion.

At the request of the Central Bank, these firms had previously informed all their customers included in the PPI sales review of their intention to provide updates to them as the Review progresses.

Too early to estimate refund values

The Central Bank has advised that is too early to comment on the number of consumers that will receive refunds or the potential total amount to be refunded. However, speaking on RTE radio, Mr. Bill Prasifka , head of the Financial Services Ombudsman in Ireland said that his office has received a significant number of contacts in relation to mis-selling of PPI in the Irish market.

UK experience has resulted in significant cost to banks

Payment Protection Insurance has become the costliest of Britain’s financial mis-selling scandals with the total bill expected to top Stg£20bn.

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