Posts Tagged ‘PPI’

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Everything You Need to Know About Mis-Sold PPI

Thursday, December 8th, 2011

Mis-sold PPI is a term that the majority of the British public will have undoubtedly heard over the past 18 months or so. However, many of those do not actually know what it means and whether or not it affects them.

PPI stands for payment protection insurance, which is an optional product customers are offered when taking out a new credit card, loan or mortgage. It is designed to cover repayments if the customer loses their job or becomes ill and is unable to work.

However, numerous high street banks have become embroiled in a scandal, after it was revealed they have sold hundreds and thousands of such policies dishonestly.

Mis-Sold PPI: Why Are the Banks in Trouble?

There are a range of ways in which banks mis-sold PPI policies to their customers and consequently earned money from them that they shouldn’t have.

The reason for these complaints were that the people who helped them take out a loan, mortgage or credit card then went on either to tell customers that it was mandatory to also take out PPI, add PPI to the loan agreement without notifying the customer or sell PPI to those who weren’t eligible for the product in the first place.

As a result, these banks have set billions of pounds aside to compensate those to whom they have dishonestly sold PPI.

Claiming Compensation for Mis-Sold PPI

If you want to claim compensation for mis-sold PPI, the first thing you need to check is that you were actually sold it in the first place. Many people try to claim without knowing for sure if they ever had it.

To find out if you have PPI, check the paperwork you received after taking out your loan, home loan or credit card – it may be listed on the documentation as ‘payment protection insurance’, ‘loan protection cover’ or a similar term. You can also contact the lender directly and ask if they have a PPI policy reference for your account.

Once you know if you have PPI or not, you need to speak to a specialist claims company and see if they can take on your case. The experts at the firm will be able to give you all the advice you need to start your claim, investigate further and then get in touch with the lender on your behalf, dealing with all the legal issues that crop up in the process.

Want to Make a Mis-Sold PPI Compensation Claim?

If you are considering making a mis-sold PPI claim yourself but need expert advice on how to start the process, contact Precision Claims today. The company’s legal experts specialise in cases like this, as well as personal injury and care home claims.

Learn more about mis-sold PPI. Visit Precision Claims’ site, where you can find out all about PPI claims.

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The Struggle for Banks Paying off PPI Claims

Monday, December 5th, 2011

PPIs have been a huge headache for banks over the past few years. This all began when banks started offered what they claimed were good deals on insurance for peoples’ loans, mortgages and credit card payments. The idea was that if you’re unable to pay for some reason, such as illness or becoming unexpectedly unemployed, you can still cover debts. This sounded like it should be good for everyone, but that isn’t how it worked out.

It’s not just that PPI was an ineffective form of insurance. Customers were misled into taking them out in the first place. Some people were made to believe they were compulsory if they intended to take out a loan or mortgage. In other cases people were simply billed for it without knowing they were being charged. What this amounts to is theft, and the government response has been clear: banks have to pay out on all legitimate PPI claims, and that means a lot of compensation money being paid out.

Banks are overwhelmed at the moment. The Financial Ombudsman Service, who deal with the majority of claims free of charge, have observed a doubling of the amount of people claiming on their PPI. The figure for 2010 to 2011 stood at around 100,000 people, and that’s still only a fraction of the people that are likely to claim. Banks have compounded the issue by refusing to cooperate, meaning they contest every case individually, despite not having enough staff to cope with the influx of cases.

But it’s not to say that they aren’t going to be able to pay out. All banks have taken on more staff, and set aside provisional funds to be able to pay off these debts. Barclays for example have one billion pounds devoted just to PPI repayments, so the funds are there to make sure that everyone gets compensated, but they’re not going to hand over any money without making people jump through hoops for it. That means that anyone filing a PPI complaint shouldn’t expect money back for a while.

If you make a claim, don’t expect a fast response. It can take months for the procedures to take place, and for your cheque to be sent out. So there won’t be something in the post for you the next day sadly.

Find out if you were mis-sold PPI and you could be eligible to make a claim.

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Reclaim PPI – Who Can and How Do They Do It?

Sunday, October 30th, 2011

The increased exposure on the subject of PPI mis-selling has resulted in affected customers from around the country being made aware that they were capable of claiming for the billions of pounds they are collectively owed. Consumers have been able to claim thanks to regulatory bodies such as the FSA and consumer groups like Which? drawing attention to the ways in which banks sold PPI to customers through deceptive means. Tighter regulations and court rulings have meant that the companies responsible for selling PPI have had to amend their mistakes and a high proportion of claims are now successful.

Consumers are claiming because of the way banks sold them PPI – by making out that a loan would only be available to them if they took the insurance for example, or neglecting to inform them that because of their individual circumstances the insurance would never be of use to them. While it used to be difficult to prove what was glaringly obvious – that they had been tricked into wasting their money – new guidelines means that anyone with a genuine complaint is now practically assured a repayment.

And with the average payout being around 2000-2,500 there’s no reason for people who think they might be entitled to a refund on their PPI scheme not to claim. Many people are claiming for themselves, finding their old policies and writing to the appropriate people.

Others find they simply don’t have the time or don’t want to deal with the stress of doing it themselves – they might have misplaced their policies or be unsure about how much is owed to them and not feel confident about making a claim themselves. In these cases, consulting a specialist who deals with PPI claims daily could make all the difference. And you still won’t have to worry about it costing you anything because they often work on a no-win no-fee basis.

With an average payment of almost 2,500 there’s no reason not to attempt claiming back money that you should never have paid in the first place. And if you let a PPI claims agency do the work for you then you won’t even have to worry about spending any time on the case.

Could you reclaim PPI?

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Mis-sold PPI claims making life difficult for the banks

Thursday, August 25th, 2011

The banks have been set targets for processing complaints regarding mis-sold payment protection insurance (PPI), but the majority of them are struggling to keep to them. The Financial Services Authority (FSA) has already extended the timeframe in which banks are expected to handle the complaints, but this has done little to relieve the pressure.

The original guidelines specified that banks should deal with these complaints within 8 weeks, but the FSA made a temporary agreement with Barclays, RBS and Lloyds in June which gave them more time to process the mountain of complaints that have been sent to them.

This agreement stipulated that the banks must provide decisions on PPI complaints that were suspended during the recent judicial review by the end of August. The timeframe for dealing with complaints received between the end of the judicial review and the end of August was also doubled, to 16 weeks. For PPI complaints received between 1st September and 31st December, the timeframe is 12 weeks.

The latest reports, however, indicate that the banks continue to struggle under the weight of the PPI fiasco, despite the FSA extending these deadlines. They are hoping that all complainants will receive letters by the end of the month informing them of whether their complaint is being upheld, but the majority won’t receive the compensation they are due until up to 4 weeks after receiving the letter. Furthermore, the amount of compensation they are set to receive may not even be revealed to them. Guidelines state that those whose claims are successful should receive a full refund on any PPI premiums paid as well as backdated interest (at a rate of 8%).

If you have already submitted a PPI complaint to your bank, you should expect to receive a response before the end of 2011, or by the end of August if you sent the letter before 20th April.

Do you want to reclaim PPI costs? Get in touch today!

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The fiasco of payment protection insurance

Friday, August 12th, 2011

There has been a large number of stories in the media recently about the fiasco surrounding PPI or payment protection insurance. The idea behind PPI is that it should act as a safety net for people who take out loans so that should they be made redundant, get injured or become ill and be unable to continue their loan repayments then they will be covered and not run up large debts. Because of the high percentage of profit lenders were making from PPI though they began to mis-sell it and left borrowers paying more on their loan repayments than they should have been.

Many people who have or had PPI were not even told that they had it and the amount was simply added to their payment without them being aware. when loan terms were offered with PPI the bank or company offering the loan would often use describe the loan has ‘fully protected’ rather than asking the person if they wished to take out PPI in case they needed it.

The lenders only made a small percentage from giving people loans whereas by selling PPI they were retaining almost the entire PPI amount. On average PPI added between 15% and 30% to people’s monthly repayment which in most cases would be way more than the interest being paid. PPI isn’t entirely a scam though and some people did need it, however even in these cases people were paying up to four times more than they really needed to.

The mis-selling of PPI has been in headlines recently and many who were mis-sold it have a chance to claim their money back. The chance they have to claim it back depends on where they bought it from though. If they took out an online loan then although the terms were probably hidden, they were still there and this makes it very difficult for them to be successful.

The real mis-selling though came from salespeople who failed to outline PPI properly to people when advising them on their loans. Some salespeople also lied and told their customers that it was compulsory whilst some told the customer it was a good idea for them when it was actually the wrong type of cover. In these cases, a person is more likely to be successful in their attempt to reclaim the money.

Get more information on mis-sold PPI.

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PPI Judicial Review – What it means to you

Sunday, July 17th, 2011

Payment Protection Insurance is still right under the nose of the consumer. People everywhere are losing out on thousands in payment protection insurance claims. It’s highly advised that you start your claim today, before you miss the opportunity to get your premiums back!

The two taxpayer-backed banks ‘Bank of Scotland’ and ‘Lloyds TSB’ have decided they would prefer to drag Payment Protection Insurance claims out for as long as they can. They seem to be deliberately delaying the process for unknown reasons. A spokesperson for Lloyds banking group believes that around 20% of PPI claims will be rejected very quickly due to having ‘no PPI’ and that they would be handling each case individually based on their merits. Barclays Bank on the other hand have admitted liability for the mis-selling of PPI and have come to the conclusion that it would be in the best interests of themselves and the consumers to get this whole Payment Protection mess out of the way and return to normal business.

Not like Barclays, the taxpayer supported banks Lloyds TSB and Bank of Scotland stated, they would not be mimicking Barclays in providing hassle-free Payment Protection Insurance refunds. Someone from Lloyds TSB made the public statement that Lloyds would be judging each individual case based on its merits and that they would handle all payment protection insurance claims regardless of when they were made. He also stated that about 20% of all the PPI claims placed would be automatically rejected due to them not having Payment Protection Insurance. This includes the Bank of Scotland, Halifax and Lloyds TSB brands. To shed light on a dark situation, he did state he believed most people who put in a PPI claim would receive a refund. But why on earth would they choose to make claiming more difficult than a major competitor? Surely this is likely to make people switch their bank? They could be providing refunds much quicker and this would increase customer satisfaction, where currently they are lacking a lot of.

It’s obvious that the move the banks make will be the base and support of their reputation for the next few years. Barclays have clearly made the best customer based decision in deciding to make payment protection insurance claims a lot less hassle. Lloyds banking group seems to have difficulty understanding that delaying the process and making it more difficult to claim PPI is likely to deter any future custom they are hoping to obtain.

It’s highly advised that you initiate your Payment Protection Insurance claims before time runs out. You only have a 6 year window from the date you took out your loan/cc/finance before the bank destroys any documentation on that lend and you lose your chance to claim back thousands.

With the recent Judicial Review between the banks and the Financial Services Authority, plus the attention the media have placed on Payment Protection Insurance Claims thing’s can seem confusing! Make sure you’re up to date with all of the latest news!

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PPI Claims On Rise Due To Frequent Dishonest Procedures

Sunday, October 10th, 2010

It would seem that payment protection insurance (PPI) could be a welcomed friend for that individual whom may become unable to work due to an accident or perhaps illness, in addition to the consumer whom becomes unemployed due to job redundancy, however, the facts are that only one out of every five customers that file a claim will be approved to receive these monthly payments. Why is this? The majority of consumers, whom have obtained PPI knowingly, did not know the numerous restrictions that are attributed to it. Often time’s these very same customers were not eligible to begin with to actually be offered it. The numbers of mis-sold customers in the United Kingdom are hitting a record high, as well as the reclaiming of ppi is booming and will continue to grow over the next few years.

In 2008 The Competition Commission carried out an investigation to find out the percentage regarding approved claims during the period of slightly over one year and came up with the following data:

* PPI with Credit Cards – approved claims approximately 11% of the time.

* PPI with Mortgages- approved claims approximately 28% of the time.

* PPI with Personal Loans – approved claims around 15% of the time.

It has been widely reported a large number of consumers that purchased payment protection insurance were lied to at the time of personal loan application. Many were advised that the cover was mandatory in order for them to obtain the loan, which is an outright lie and tops the charts for people whom are reclaiming ppi for mis-selling. Even worse is the fact that had you been self-employed, unemployed, under 18, over 65, retired, had certain health problems, had not been employed at the very same business for over 12 months, and so on, you should not have even been offered this cover as you would have been deemed ineligible.

Many customers might not even know that ppi was added to their monthly payment repayments. One method lending companies used to pull this off was to present the customer with a partially completed form and then have them sign it. The unwitting consumer would likely sign their name not really knowing they opted to purchase PPI.

It has additionally been reported that the total price customers could end up spending money on this cover could be up to 50% of the actual loan sum. Which means in the event you borrowed 5000 pounds, you might end up having to pay 5000 in addition to 2500 coupled with the finance fees. When you see those numbers and you recognize that only a small percentage of customers actually collect in times of need, it does not seem worthwhile.

The above mentioned are simply a couple of of the numerous ways by which consumers were mis-sold payment protection insurance. If you need more information on how to make ppi claims visit www.ukppiclaims.org.

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Personal Loans Plus PPI Claims

Saturday, October 9th, 2010

Often times the need for extra money may arise and one might have to seek out a personal loan to assist the financial situation for many reasons. With a personal loan there is the opportunity to obtain a secured loan or unsecured loan. You will soon notice that personal loans are relatively easy to obtain, but there are many things the consumer must understand and inquire about before signing your name on the dotted line. Often times, the borrower does not always pay attention and may just trust what the loan sales rep has told them. This is often a very large error. This article will discuss important points that you the borrower need to verify before signing for your loan.

Be sure to verify the type of loan you’re applying for. Unsecured which means you aren’t putting up any collateral or secured which means you is going to be putting up collateral. Typically if you have a bad credit score, the financial institution will require some sort of collateral.

Once you have decided upon this you should next find out what the APR is going to be. This is not only the interest rate; it’s also wise to be shown what the additional fees which are included within the APR (such as lender fees, setup costs, delivery costs and at times payment insurance).

You should observe that payment protection insurance (PPI) should not be included within your APR or your monthly loan repayment installments. If the bank or lending company lets you know it is compulsory you must let them know you know it is not and refuse it. Many financial institutions (especially within the United Kingdom) are involved in a large controversy in which they are currently paying back an incredible number of consumers for mis-selling this type of cover and by that particular means (as well as other mis-selling tactics.)

Depending on your own credit rating your interest rate may fluctuate. It has become much harder for an individual with poor credit to obtain a low interest rate on a personal loan; many will need to have cosigner. It is also important that you ask the loan specialist to show you what your monthly payments will be for certain amount of time. Often a personal loan can only be taken out for up to five years.

Remember there are legitimate forms of insurance that you may purchase externally companies in order to have a sense of security in the event you become unemployed due to illness or layoff as well as cover in the event of death.

A personal loan can be advantageous in tough times or when an issue arises that you had not prepared for. Just remember to use due diligence and compare banks along with their products; always review all paperwork before signing, and if possible don’t use anything of the valuable nature for collateral if you are only able to obtain a secured loan.

Find out if you can claim back ppi payments that may have been added to your personal loan and to request information on other mis-selling practices by visiting http://www.ukppiclaims.org.

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Is It Possible A PPI Reclaim Couple Pay Of My Debt?

Wednesday, September 29th, 2010

Payment Protection Insurance (PPI) is a very profitable sideline for lenders. In fact, lenders make more money on PPI than the interest they charge on the loans and credit cards the insurance protects! For every 100 a lender charges for insurance on a loan or credit card, there is an 85% chance a claim will never be made by a customer, so they get to keep all of the money. The trouble is, a lot of this money has been obtained at the expense of pushing people into taking on extra credit – and therefore more debt – and mis-selling them Payment Protection Insurance at the same time. If you’re reading this article you are probably one of them, but fortunately PPI claims will be the key to helping you pay back the debt the lenders have forced upon you.

Every industry has its favourite methods of making extra profits with the least amount of effort, and the financial industry is no different. However, if you had to guess what the industry’s favourite method was, chances are you wouldn’t pick PPI as a money-spinner or pet profit-maker. But this particular product has reaped massive profits for lenders – and is now dispensing a sting in the tail that has caused the industry its biggest headache and a potential 2.7bn bill to be paid on PPI claims over the next five years.

The lengths lenders have gone to, to sell PPI are extraordinary and in some respects, unbelievable, simply due to the massive profits that could be made on each policy, far more than what could be made on the interest from loans and credit cards. If you are reading this and wondering if you may be one of those people who has suffered at the hands of the lenders then reclaiming your PPI could be the answer to your debt problems.

The full extent of the unscrupulous and unethical tactics lenders use to get you to have PPI has only recently come to light. There are many ways you could have been pushed into having it which would make PPI claims valid, including: 1) Not knowing you have it in the first place! 2) The lender slipped it quickly into the conversation so you didn’t hear it mentioned clearly 3) You were told it was compulsory to have the lender’s PPI if you wanted to obtain credit from them 4) Pre-filled application with boxes ‘helpfully’ ticked 5) The policy is not what you asked for or agreed to 6) You didn’t know your loan was longer than the PPI policy 7) The PPI is a joint policy held in one person’s name 8) You were a student, unemployed or retired when you were sold the policy yet it doesn’t cover you under these circumstances 9) Does not cover you if you are a sole trader, but you were told it did 10) No enquiry about existing medical conditions which the policy will not pay out on 11) No discussion about any alternative cover you may already have

Any of the above are grounds for a PPI claim, but it may not be an easy process. Lenders have perfected the art of making the process as difficult as possible so you will give up on your claim. In fact, recently the Financial Ombudsman complained to the Financial Regulators about lenders rejecting PPI claims immediately without investigation, and being deliberately obstructive. This is despite 89% of all complaints that the Ombudsman deals with relating to PPI claims having merit and subsequently being upheld.

So why are lenders behaving so badly? Very simply to try and make the process as difficult as possible, so you give up on your PPI claim and they can keep the money. After all, if you receive your third, fourth or even fifth letter from your lender refusing to discuss a complaint or simply rejecting the PPI claim as having no basis, wouldn’t you give up?

Sometimes you can speed up the process considerably by using an experienced claims company to help you with prepare, submit and manage your PPI claim. Most lenders don’t bother to try delaying tactics with these companies because they know they have a great deal of legal knowledge behind them, not to mention won’t tolerate any silliness or obstruction from the lender.

While it may take a while for you reach a successful conclusion to your claim, it is worth doing if only for the satisfaction of paying off some – if not all – of your debt with your refund. And of course, getting rid of an unethical lender who tried to cream off a bit more profit by pushing you further into debt is also immensely satisfying too!

Lenders are forever mis selling ppi to consumers. Don’t hesitate, submit your ppi claim today and reclaim the money taken from you. Don’t let the banks win!

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Can You Claim PPI – List Of Questions

Monday, September 20th, 2010

Many people are still trying to find out if they are indeed entitled to file a ppi claim to their lender in order to get a settlement on the monies for which they may have paid out unfairly. Large numbers of cases of mis sold ppi claims have already been filed as well as a very large percentage has in fact won. According to the Financial Ombudsman a complainant will have to satisfy specific criteria in an effort to establish mis sold ppi claims; after which it has to be proven in order to recoup your money (in addition to 8% statutory). We have developed a brief checklist of standards so that you can read through; in the event that a minimum of one relates to your own circumstance, then there are very good chances you have a valid grievance.

Personal Information

* You were under 18 years old or over 65 years old.

Overall Health

* Previous health concerns for instance back troubles or perhaps stress and anxiety, depression, and so forth.

* Existing medical condition.

* No one at any time asked any questions concerning your health.

Employment Circumstance / Status

* You had not been employed at latest job for a minimum of twelve months.

* You were jobless or perhaps retired.

* You had been self-employed.

* Employment status had been a short-term position.

* You had been working below sixteen hours a week.

Time of Loan and / or Credit Application

* You were made to believe possibly directly or in a roundabout way that the PPI was compulsory to obtain a loan product.

* You were not told you could actually buy the PPI from someone else with a lesser rate.

* No-one asked you if perhaps you possessed any insurance coverage (not just PPI).

* Nobody reviewed with you the expense of the payment protection insurance; either prior to as well as following financing.

* You in no way approved payment protection insurance purchase; however it has been included in your loan payments.

* No one discussed to you the full terms or conditions.

There might be various other fundamental circumstances by which you are categorized as that will also permit you to make a legitimate mis sold ppi claim against your loan provider. It is advisable to gather up all of your information, documents, etc and create a formal correspondence as well as send it off to your specific lender. Should you not want to attempt this, and perhaps just make use of a professional company which focuses primarily on this field, you should.

Do not take the chance that you are owed money; start right now and contact claims company and rest assured they are going to do their best in hopes of getting you made whole with your ppi claims. Note – no upfront fees, only pay should they get you a settlement on your case.

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