Mis-sold insurance to cost banks millions

Thousands of customers erroneously sold payment protection insurance (PPI) are expected to win millions of euro in compensation as a result of a Central Bank investigation which has found the problem was systemic.

The Central Bank investigation concentrates in the main on the mis-selling of payment protection insurance to the self-employed, those close to retirement, and those on contract — the bulk of whom were ineligible to be insured under such policies.

The Irish Examiner understands the investigation by the Central Bank’s director of consumer protection, Bernard Sheridan, has uncovered widespread abuse across seven separate financial institutions.