# Bank Overcharging: regulatory watchdog appears to be once again napping on the job.



## Riddler (23 Aug 2007)

News of Ulster Banks overcharging on PPI is nothing new. This aspect of banks and indeed credit union business has been known of for nearly 10 years. The way in which PPI is both sold and charged to the consumer up front – that is the entire cost of the insurance for the full loan term is charged up front with various differing processes depending on the Bank or Credit Union used to collect from the customer.  

What is shocking is it has taken Ulster Bank so long to discover its overcharging practices particularly as the problem has been widely known of in the industry for over 10 years including the Financial Regulator. 

Banks worry about reputational capital …they need not as the majority of people believe that they are active participants in the “rip off” culture. Customer service really means the customer is of service that is completely subservient to shareholder value and to the bottom line. 

What is disheartening however is the regulatory watchdog appears to be once again napping on the job. Maybe it’s sleepy after its latest self congratulatory meal of public advice to “shop around”. Perhaps they should also include a health warning “financial service firms regulated by us are free to (a) overcharge and (b) admit to their mistakes. So long as they pay you back your money we are satisfied on your behalf and they may of course continue to use our brand ”


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