MANCHESTER, England, February 21, 2012 /PRNewswire/ --
Payment protection insurance (PPI) claims management company Precision Claims has come out in support of consumer group Which? after it called for banks to withdraw bonuses of executives of banks that have mis-sold the product.
Numerous high-street lenders were found to have dishonestly sold PPI to customers taking out loans, credit cards or mortgages, often adding them to the lease agreement without the customer's knowledge or approval, even if they were ineligible for the product in the first place.
As a result, the institutions have been forced to set aside as much as £6 billion between them as compensation for consumers.
Now Which? has written to the remuneration committees of banks caught up in the scandal, to say "they would be breaching the City regulator's pay code unless they go one step further and force related bonus arrangements to be cancelled".
The group believes bank executives, even if they have since left the bank in question, may have received "huge" bonuses at the time that PPI was mis-sold, as it was a "big business".
Richard Lloyd, executive director at the organisation, said: "This is one of the clearest examples of unfair treatment of customers and reward for failure on an industrial scale. There has been a lot of rhetoric from the government and banks about linking performance to pay. This will be the test to see what that rhetoric means in practice."
Commenting on the news, Simon Thompson, managing director at Precision Claims, stated: "The team at Precision Claims has dealt with a multitude of PPI claims and has seen just how big an effect it can have on consumers who have essentially been tricked into parting with large sums of money.
"We therefore agree that those who played any part in mis-selling PPI should have their bonuses reclaimed."
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SOURCE Precision Claims