One of the handful of ‘Next Gen’ banks emerging in the marketplace is Tesco Bank and already they’ve got into some hot water after the loss of personal customer data. The bank lost the names, addresses and contact details of 39 customers who had complained to Tesco about mis-sold PPI policies on credit cards.

According to a national newspaper, the information was lost in the post between offices in Manchester to Glasgow and cannot be traced. Tesco’s credit cards are provided by RBS and when asked who was to blame for the incident, Tesco said a ’service provider’ was culpable but would not name them. Losing data is nothing new to banks, but here’s where the difference is: Tesco, with it’s background in retail and customer service, offered all 39 individuals 2 years free insurance against any losses that may happen as a result of the incident. Not sure any of the more traditional banking houses ever did that.

The mis-selling of Payment Protection Insurance (PPI) has had a profound effect on the industry, the regulators and most of all on us, financial consumers. But what is going to stop mis-sold PPI from rearing it’s ugly head again? Well, new regulations state that from October PPI cannot be sold alongside a credit agreement and lenders must wait seven days to contact a customer about the insurance product. The idea behind this is to encourage people to look around for the best product for their needs and to stop lenders shoe-horning uncompetitive cover in at the point of sale.

As well as regulatory change, there has been a shift in public perception of the product, people are more aware of it than ever before and this alone may well prevent suprise PPI costs being found on statements. But despite these preventitive steps, possibly one of the best of all is being ignored – the introduction of professional requirements for advisers selling protection. The FSA is currently looking into the costs and benefits of requiring advisers of term assurance, critical illness cover (CIC) and income protection (IP) to attain qualifications, yet they have excluded PPI from the consultation. Maybe it’s replacement in 2012 will think differently.

The Financial Services Consumer Panel has come out and voiced its concerns regarding the Coalition Government proposals to reform the financial regulatory system.

The plans, discussed earlier in the week, involve the winding down of the Financial Services Authority (FSA) and its eventual replacement in 2012 by a three-body regulator.

But speaking at the FSA’s annual meeting, Adam Phillips, chair of the Consumer Panel, said: “the new system of regulation must learn from the successes and failures of the FSA and commit itself to implementing changes that will protect consumers”.

Ultimately, despite the closing of doors and bolting of horses, the FSA has had a strong year which has seen many organisations punished for infractions. Mr Phillips went on to say: “We hope that the decision to reform the regulatory structure will not lead to the deferment of changes which will bring significant benefits to consumers.” Amen to that.

The Financial Ombudsman Service (FOS) has shifted more resources to handle the increased loads of mis sold PPI claims and complaints being made. Around 135 a day were made last last financial year, more than any other 12 month period and the number shows no sign of falling.

The reason for the increase in claim numbers has been put down to the ever increasing number of claim handling companies as well as the rise in Press coverage of the mis-selling scandal. In addition increasing resources the FOS have also released details of eight cases that were recently brought infront of them in an attempt to provide more information to claimants.

It’s been extensively documented and reported that the Financial Ombudsman (FOS) has received more complaints about PPI than about any other financial product or issue. Last financial year the FOS received 135 complaints a day about mis sold PPI with many of those complaints coming from self employed and elderly individuals.

These groups were particularly badly hit by the mis-selling of PPI because many self-employed borrowers were forced to take a policy to get the credit, paid for it month on month, then when they needed it were told it doesn’t cover them because they’re self employed. Its been a similar propblem with the elderly, many of whom wher sold a policy without being told about age or health restrictions on the cover only to find they have been paying for a useless policy. Thankfully as the FOS figures show, these people are now fighting back.

You know that mis sold PPI is making waves when it’s mentioned by newspapers, but you know that it must be big news if Radio 1 talk about it. Just last week ‘Newsbeat’ ran a story about Payment Protection Insurance mis selling that discussed the plight of one victim in particular.

The carrying of the story confirms that PPI claims are commonplace and a whole younger generation of financial consumers could be encouraged to take action by the broadcast. The mis selling scandal has come a long way from the early days of consumer watchdogs pointing it out and very few people listening. Now, it’s big news with 135 people a day putting in a related complaint to the Financial Ombudsman Service. Bring on the national revolt! (in a peaceful, law-abiding way, of course).

Not a great week for anyone with hopes that the Country might be getting out of the financial myre we’re in; the Prime Minister announced on Friday that the Economy is in a worse state than he feared and that more cuts may be necessary. This was then followed up by an invite to the British public to join the Government and suggest what we can afford to do without or what can be farmed off to the private sector.

All of this adds up to the Government subtly letting us know that there are some tough times ahead and if we make the decisions, No.10 wont be totally to blame for an austire 5 year term. The plan to get public opinion on Govt spending isn’t a Conservative brainchild, the Canadian Government did it back in the mid nineties which is no doubt why Canadian Prime Minister Stephen Harper was in town last week.

Right now there is a massive gap between what we’ve got to pay out and how secure those repayments are, this has lead to many seeing their properties and credit ratings at risk. The problem is less people are taking out any kind of payment proteciton or income protection due to the PPI mis selling scandal and those that had it have cancelled it to save some money.

Needless to say by not covering your back when it comes to mortgage or loan repayments you can leave yourself very exposed should you lose your job or be unable to work. So what do you do? Well, you can start by setting up a ‘Financial Safety Net’ like the one in this Financial Mail article.

Just a quick one today, partly because it’s Friday and partly because the Guardian have written a great ‘Top 10 Useless Financial Products’ article which you have to see. Check it out here…

If you’ve been following the work of the new coalition Government you’ll know about their plans to cut £6bn from public spending. The cuts are designed to reduce the budget deficit and stabalise the UK economy at a time when other European Countries are going cap in hand to the World Monetary Fund (WMF).

Police, NHS and Educational Staff Could Face Job Cuts

There’s no denying that £6bn is a fair old chunk of money but where will the savings be made? The answer to that question is already well known by those who work in the public sector, many of whom have already signed up for Payment Protection Insurance (PPI) as a result. Anyone who fears their job is at risk is free to take out a PPI policy as long as their employer has not announced any job cuts.