HBOS comment on PPI and bank charges and the translation

Posted on 27 February 2008 by Ray Boulger

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Extract from today’s HBOS report to the Stock Exchange with their 2007 figures:

"Regulatory intervention is an ongoing feature of UK retail banking and changes could affect the profitability of our business," the bank warned.

"The ongoing investigations into bank charges and payment protection insurance may both lead to changes in pricing structures in those markets."

Translation:

If the nasty regulator stops us ripping off those of our customers who are too naïve to realise what poor value our payment protection insurance offers, let alone selling it to them when a totally different product – permanent health insurance – would be more suitable, and/or stops us charging customers nearly £40 to recoup the huge expense of programming our computer to automatically reject any cheque, direct debit or standing order which would make them overdrawn or exceed an agreed overdraft limit, and for writing to them to advise that we have performed this "service" for them, we will have to find a compliant way of recouping the lost revenue.

It happens to be HBOS today but it could be any one of most of the other major banks!

 

Category: Mortgages, Personal finance, Regulation

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