RBS Boss Tells BBC They Face ?Head Winds? After Reporting

RBS Boss Tells BBC They Face ‘Head Winds’ After Reporting £1.4 Billion Loss

PPI Claim Company

London, UK (PRWEB) August 24, 2011

Speaking to the BBC the lender’s Chief Executive, Stephen Hester, said they now faced ‘head winds’ as a result of the difficult global economic climate and were continuing to restructure. The loss has been attributed to the bank’s exposure to Greek government bonds as well as the financial impact of having to compensate customers, with the help of PPI claim companies such as Belmont Thornton, who have been mis-sold payment protection insurance.

Payment protection insurance is a type of insurance provided by most major lenders, including RBS. It is sold alongside mortgages, loans and credit cards and is designed to cover a borrower in the event they cannot work due to sickness, accident or redundancy. The cover has become controversial; however, after investigations by the Financial Services Authority and the Financial Ombudsman Service revealed widespread failings in the way the cover was sold. Common issues identified included a failure to provide full information regarding the cover and its cost and a more general failure to put in place adequate processes to protect customers from mis-sale.

Belmont Thornton discovered that RBS has in excess of 25 million customers and it is thought to have sold between 1.6 and 2.4 payment protection policies. It is not known how many of these policies may have been mis-sold.

In April 2011 the British Banking Association attempted to challenge new Financial Service Authority guidelines regarding the sale of the payment protection insurance. The challenge failed and, as a result, RBS and several other lenders announced they would be setting aside funds to investigate and compensation affected customers. RBS’s allocation amounted to £850 million which, clearly, contributed to their recent losses and it has been companies such as Belmont Thornton that have been helping customers claim back what they are owed. .

To find out more about the issue of mis-selling and to find out what can be done about it, visit Belmont Thornton, the PPI claim company website at: http://www.ppiclaimcompany.co.uk

Source: http://www.bbc.co.uk/news/business-14415610

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