4th September 2012
The next big financial mis-selling scandal could be interest-only mortgages, according to the new chief executive of Barclays, Antony Jenkins.
According to the bank boss, Barclays has seen the first few thousand interest-only mortgages which people are struggling to pay off, out of an admittedly vast portfolio.
Customer mistreatment could lead to compensation claims, but the real issue could arise over whether or not interest-only mortgages were mis-sold in the first place. During the house boom, some banks offered higher loans on an interest-only basis rather than with a regular repayment structure in place, and this could be seen by regulators as having placed customers in risky or unfavourable financial positions.
Posted in PPI, Claims, UK Finance, Mis-selling Scandal