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Second £1bn PPI mis-selling scandal looming

Lenders’ reeling from the Payment Protection Insurance mis-selling scandal should brace themselves for a further wave of compensation claims, this time from customers who were not offered financial support mechanisms when taking out their loans, says protection specialist and British Money director, Alexander Burgess.

21 March 2014
PPI Confused

Using online survey firm Usurv, Burgess asked 100 claims management companies to identify the next financial services mis-selling scandal; ironically 79% believe lenders’ failures to discuss or offer PPI or obtain an acceptable disclaimer could expose them to a compensation bill of around £1bn.

46% of mortgage lenders do not discuss or offer financial protection plans to borrowers and their reticence increases the risk of payment default - breaching their duty of care and contravening Financial Conduct Authority Mortgage Market Review guidelines which roll out in April .

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