A full government inquiry into the payment protection insurance (PPI) mis-selling scandal may be needed, a new report has indicated.
An investigation published by the Sunday Telegraph (11 March) revealed that all major banks in Britain - including Barclays, HSBC, Royal Bank of Scotland and Lloyds Banking Group - had sold "highly complex interest rate derivatives" to small businesses.
Owners of firms such as farms and hotels told the news source they were advised to purchase PPI along with their loans on the basis the product would shield them from rising interest rates, despite the fact they did not understand what they were buying.
Lord Oakeshott, former Treasury spokesman for the Liberal Democrats, said this could be an indication that, if more businesses come forward with similar complaints, "another round" of the "dreadful mis-selling scandal" could be imminent.
This comes after the Financial Services Authority informed banks they must write to consumers who may have been wrongly sold PPI but have not yet made a claim.
By Gary Cooper