There are two sides to every story, and it would appear to me that both Alan Lakey and Nic Cicutti are right on the misselling of payment protection insurance. There are many thousands of bogus claims for PPI misselling which have been paid out, including claims made by people who have made successful claims on their policies.
But equally, Nic is right to point out that the tactic of capitalising PPI premiums and including them as part of the standard quote was rife among most (but not all) banks and building societies.
What I object to is our regulatory culture, which says if it was not written down then it did not happen or was not said. What happened to caveat emptor?
The FSA and now FCA have built a labyrinthine regulatory framework that requires time and money to comply with, and one has to seriously question whether the impact of this is to cost every consumer far more money at the expense of protecting those consumers who are badly or wrongly advised. Our regulatory system focuses on penalising bad advice, but surely it is bad products that are the bigger problem.
If bad products did not exist and were not allowed to be sold, then it would not be so easy for bad advice to be given.
The regulator needs to focus on the bigger picture, stop bad products being marketed and put resources into policing the manufacturers.