In the aftermath of the Payment Protection Insurance scandal, the highest paid executives of a top British bank have been hit with a pay freeze.
The bank recently hit a low of a £3.9billion loss in the first few months of 2011, sending out warning signals it may have to holdback some of the recovery targets it had in place until 2014. The vast majority of the loss was brought forward after the bank had to cough a large sum in order to cover the mis-selling on PPI.
Thousands of the banks clients have put forward claims to receive back the money they are owed after the PPI scandal was revealed earlier this year. The bank in question mis-sold the policy to clients by selling it to those who cannot claim anyway, by not making the client aware it was optional and also selling it to some without their knowledge.
While the chief executives of the bank were getting ready to receive their annual Christmas bonus, the news came they would have to go without as much this year. The UK Government, which owns a good 41% of the bank, has been piling on the pressure to slash the year’s bonuses because of the PPI mis-selling scandal. It simply would not be a smart financial move. A 50% reduction in bonus payments to the chief executives will no doubt come as a huge shock to them, especially over the busy Christmas / New Year period.
British chancellor George Osborne has rubber-stamped proposals to reform theUK’s banking system, although a warning from the Independent Commission on Banking suggests it could strike a further setback to GDP growth, as well as costing the financial industry up to £7bn.
Sally Bowyer, Managing Director of leading financial claims company, BrunelFranklin.com said: “Whilst the rules have been tightened up to prevent the blanket mis-selling of PPI, in theory, the problem is historical and people can often apply for a refund of several years’ worth of premiums plus interest, if they were mis-sold a PPI policy.”
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.