Brokers don't want to pay for banks' mistakes, nor those of bankrupt credit brokers
We may be entering the dog days of summer. But while the weather is cooling, brokers remain hot under the collar about this year’s increase in the Financial Services Compensation Scheme (FSCS) levy.
The numbers signing Insurance Times’s ‘Fair Fees’ petition show just how high those feelings are, especially now that you are having to write hefty cheques before the payment deadline passes.
Understandably, much of your ire has been directed against the banks – legitimately so, as the scheme’s design means that the cost of bank failures may end up being passed on to brokers.
But this is a long-term concern. The activities of credit brokers linked to the bulk of the PPI?mis-selling complaints is a far more immediate worry.
It is the failure of these firms that has fuelled the explosion in the compensation scheme levy – and sparked our ‘Fair Fees’ campaign to reform the way the FSCS works.
The FSA says it has been on the PPI case. The number of cases settled in favour of complainants suggests that somewhere, someone’s eye was not on the ball. IT