Don’t believe the hype: there’s no upside to the PPI scandal

It is the gift that keeps on giving. The scandal over the mis-selling of payment protection insurance (PPI) by high-street banks has gone on for longer than anyone could have imagined. This week Lloyds set aside another £1.8bn to cover the compensation for all the policies it sold to people who didn’t need them. In total, the main British banks have now paid out a staggering £20bn.

Yet somehow the banks, or their PR people, have managed to sell the idea that this helps the economy. Switch on the news, or read about it in the paper, and you’ll [...]

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