Just a few days back, on 19th November 2009, UK government rolled out a bill, which is bound to bring substantial changes in the way entire UK financial system works. Although, with its main thrust to regulate the financial agencies as far as UK economy is concerned, PPI claimants are bound to derive maximum advantage from the mentioned bill.
As one of the most vocal national dailies of UK has put the bill before the nation stating that it is all set to deliver significant reforms at the structural level, the bill is expected to provide people with greater rights and will result in enhanced information for consumers as a consequence.
The main thrust of the bill, however remains to lend strength to the overall system by tightly regulating the banks thus making the system safer and more robust in the near future. It aims at bringing significant changes in the system at subtle level while reforming the banks in terms of operations. By the term reforming it clearly means to make them efficient and work for the better of the masses.
Chancellor of the Exchequer Remark
The above stated intention is substantiated in one of the recent comments made by Chancellor of the Exchequer, Alistair Darling. He says "From the outset of the global financial crisis two years ago, the Government has taken decisive, innovative steps to protect the savings of British families and stabilise the economy".
He also reiterated the importance of learning from the mistakes committed by the global baking practices in general. Like all banks around the world, British banks also missed to tackle the perennial problems of the people in general. As far his statements are concerned, he particularly pointed towards steering away the turbulent economy through subtle maneuvers at financial level.
In his words, "The Bill we are introducing today is central to the Government's reform agenda that seeks to empower consumers and make sure that, in the future, taxpayers will not be called on to protect banks from the consequences of their actions."
The Financial Bill
Let us turn our attention towards The Financial Bill by going through its points to analyse them later.
Granting of new powers to the consumers where they can collectively challenge banks in court.
Firms are supposed to develop 'living wills' in order to make consumers better understand the risks involved in the businesses of banks.
Avoiding excessive risk taking measures by inflicting tougher rules on pay and bonuses.
Creating Council for Financial Stability and granting enhanced powers to Financial Services Authority.
The bill clearly vests increased powers to the regulatory bodies thus making the government role in regulating financial matters vociferous.
Advantages for PPI Claimants
As more financial regulation has been clearly stated in the bill, this means more autonomy to the regulatory bodies in UK. As PPI mis-selling was largely done at the behest of banks' fraudulent practices, PPI claimant can now claim to get his money back with interest. As payment protection insurance was intended to provide relief in case of some unforeseen circumstances with an individual, the same was grossly misused by the banks to their advantage. However, in today's changed scenario, one can easily fight ones cause pertaining to PPI compensation claims.
One of the major benefits, which PPI claimants get through the decision is the banning of unsolicited credit card cheques, which clearly states that a credit card company cannot force their customers to borrow more than they can afford.
As FSA (Financial Services Authority) is granted more powers to exercise, new body in the name of Money Guidance service to be launhced in 2010 is bound to make people with PPI compensation claims more informed and powerful.