The impact of financial crimes goes well beyond the monetary shock for those affected, according to a new study which calls for a regulatory overhaul and better support for the victims.
The report, released on Thursday by Transparency Task Force, a social enterprise group which campaigns for greater transparency in financial services, also warns that the regulatory framework for the sector is failing.
“We found the victims’ experiences adversely affected all areas of their lives, with devastating financial, wellbeing, social, emotional and support-related impacts,” the report says.
“The severity and extent of those impacts are particularly highlighted by the themes of stigma, depression, anxiety, suicide and social withdrawal; but even these alone do not paint the full picture.”
The report is based on 25 in-depth interviews with people affected by a range of financial issues. These included banks mis-selling products such as payment protection insurance, scams involving fraudulent investment products and the cases of mortgage prisoners, customers who are trapped paying higher rates than the rest of the market.
The impact on their wellbeing ranged from a lack of self-esteem and distrust of authorities to social withdrawal and even suicidal thoughts. Victims often found support informally through online communities or campaigning.
More than 32.4mn complaints were made about PPI, an insurance product that banks sold to personal loan and credit card customers in…
