Banks' PPI mis-selling redress set to hit £25bn

Talk about mis-selling! Makes me wonder how much of the payout has been based on spurious claims? It seems odd that the claims management companies can be allowed to get away with trying to coerse people into making a claim.

I know someone who works for a large company involved in processing of these "claims". Even people who have claimed on their policies will be re-imbursed if they put in a claim as it is cheaper for the bank to deal with it in that way; it is very cheap for them as they are owned in substantial measure by the taxpayer. In the meanwhile , companies like Wonga continue to ply their evil business.

Something is surely very awry when, as seems to be happening, banks and other institutions are proactively writing to customers offering them "compensation" for having been mis-sold PPI policies against which they've successfully claimed.

Given that these compensation costs are met, ultimately, by shareholders and other customers, one has to ask if the FSA considers this to be a healthy state of affairs for the industry as a whole. Whilst people should certainly be compensated for blatant mis-sales, what we're seeing now with PPI claims has gone way beyond fair recompense for genuine victims.

At this rate, CMC's and the public will greet every new announcement of possible mis-selling as yet another opportunity to perpetuate what appears to have become a succession of feeding frenzies based on frequently fraudulent claims, like piranhas attacking once-unassailable river monsters stranded in shallow water.

I think this is the lesson the banks needed to force them to rethink how they seek profits from retail clients.