Six scandals from the darkest days of an already murky industry

Published on The Guardian, by Sam Dunn, June 21, 2009.

From pensions to PPI, Sam Dunn reviews some rogue practices in the financial service sector’s hall of shame

Fat profits first, customers second. Or how about slavering execs willing to flog their own grandmother for a commission? Cliches abound about the UK’s financial advice industry for a reason: they’re grounded in an all-too-familiar reality that has left hundreds of thousands of consumers out of pocket and in deep, lasting suspicion about the real motives of sales staff. Here are six of the biggest scandals to stain an industry unlikely to ever cover itself in glory.

  • 1) Personal pension mis-selling: …
  • 2) … Endowment mis-selling …
  • 3) … Equitable Life …
  • 4) … ‘Split cap’ mis-selling …
  • 5) … High-risk precipice bonds …
  • 6) … Payment protection insurance: … 

… How did we do? Have you been caught up in a financial scandal we haven’t covered? E-mail or write to Cash, The Observer, King’s Place, 90 York Way, London, N1 9GU. (full text).

Links:

G8 summit could be the last as rising nations want their voices heard, July 11, 2009.

Exposed: The big waste scandal, July 9, 2009.

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