Move over PPI – There’s a New Scandal Coming to Town

Think that we’ve heard the last of PPI? Not so fast. Payment protection insurance was the policy mis-sold to millions of consumers across the country. Most people have already been compensated for PPI claims, but others have been rejected. It’s these rejected consumers that may have the last laugh after all: a new scandal is brewing, but not with PPI itself. It’s the commission packages that were assigned to these PPI cases that may have turned a “fairly sold” policy into one that was mis-sold.

The key lies in a Supreme Court case that determined a woman’s PPI premium was invalid because she wasn’t told the level of commission involved, or who the commission was earmarked for. This is a breach of the 1974 Consumer Credit Act, according to the court ruling.

It’s a game changer when you think of the cascade effect it’ll have on the industry. For people that weren’t compensated before, there’s a potential 33 billion pounds at stake. This figure was calculated by Autonomous Research, a research firm run by Lord Myners. Myners is a former City minister with a focus on improving consumer interactions.

Keep in mind that this isn’t about the PPI itself being mis-sold, but the high number of commission that were carried along with the package. Bank customers that didn’t get anything before could get something now. The top banks may all be affected by this, which can definitely create a bottleneck in the market.

Banks are still processing PPI claims and dealing with complaints from it, something that takes away from daily operations. They’re not too happy about possibly having to shell out even more money in addition to what they’ve already spent trying to make things right. The Financial Ombudsman’s office is also commenting, especially as they’re still processing PPI problems themselves. This additional scandal will affect the time it takes for people to get their problems addressed.

The Financial Conduct Authority now has the ball in play, but a decision won’t come for a long time as an investigation is still underway. It will be interesting to see if all of the PPI companies step in to help people get the money they deserve, or if they will sit on the sidelines.

Categories: PPI

About Mis-sold PPI Policies

There are various types of insurance and each one of these policies offer different kinds of protection and coverage. For those who are having problems with their loans, credit cards, and other similar financial obligations, the best insurance policy is the Payment Protection Insurance plan. A Payment Protection insurance policy covers monthly payments such as loans and credit card imbursements. PPI helps insured individuals to accomplish financial responsibilities during hard economic times. A person can be covered by a PPI policy when he or she is incapable of paying certain debts due to physical injury caused by accident, illness, and redundancy.

Recently there has been a controversy pertaining to private lenders who are involved in mis selling PPI policies. Mis sold PPI is in fact very rampant these days that even giant lenders such as HSBC and Capital One have been involved in process. Mis selling PPI policies is now considered routine among many lenders but this does not mean that the authorities are turning a blind eye on this issue. A lot of private lending companies have been fined and given corresponding sanctions due to their involvement in mis sold PPI policies. Thousands of insured individuals are even processing PPI claims due to this.

One of the most burning questions pertaining to this issue is why PPI plans are often mis sold? The answer is very simple. Companies and individuals who provide credit card services as well as loans create more income from insurance policies that come with loans. In the process, the profit from selling insurance plans alongside loans is greater than that of an existing loan itself. Today, there are about 20 million PPI plans in the UK alone. Almost 5 billion every year is generated through these PPI policies. This makes the cost of insurance greater than the interest of existing loans.

For those who purchased their credit cards or acquired their loans through the Internet, the process of making a PPI claim can be more difficult. However, certain measures are now being implemented for people who are making a PPI claim or a reclaim online. Aside from avoiding kind of difficulty via the assistance of government agencies, there are also specific to identify mis sold PPI policies. You can visit helpful sites that can provide you some helpful tips regarding this matter. It is also important to have your agent explain everything about your insurance policy as well Payment Protection Insurance claims.

A Peek Into PPI Protection

The term ppi refers to payment protection insurance, a form of guarantee intended to cover the repayment of your loan in case you are unable to do this on your own. A common reason for using ppi is when you are forced to stop working due to either a debilitating sickness or a permanent disability.

The terms covering a typical payment protection insurance or ppi tend to vary, including the benefits that you can avail of.

Nevertheless, in many cases, a ppi is extended as one of the components of your mortgage or loan agreement and even of your credit card contract. However, there are also instances when a ppi can be secured on its own to serve as loan repayment protection.

The details surrounding many ppi policies are rather unclear, however, and this is the reason a number of complaints have been received about the ppi. Normally, three different problems crop up in this regard. The first has to do with making ppi claims that are eventually turned down. In this particular case, the insurance firm responsible for managing the ppi has refused to release the funds due to a particular contract clause that the insured was unable to appreciate as this was provided in fine print.

PPI Protection

The second issue involving payment protection insurance or ppi is that this may have been missold to the insured party, leading to ppi claims. Under this particular scenario, there are two possible reasons on how a person got covered by this particular insurance type. One, the insurer did not take the time to explain to the insured what ppi was all about. In return, the latter accepted the policy without really understanding how this can get to benefit him in the future. Two, the insured party was not made fully aware that he has purchased insurance that he may not really need. Continue reading “A Peek Into PPI Protection”

Education in Money Needed To Stop National Debt

As it’s something that we all have to deal with at some point in our lives, you would think that money management would be something that is taught to us in Britain from an early age.

At the moment, financial education is not something that is on the curriculum at schools, but a huge cross party group of MPs are looking to change that. They have recently supported the statement that students should have compulsory lessons in money management at all levels of learning. Well, finally something said by a large group of MPs that I agree with!

It’s no wonder that the country is in so much debt, seen as the majority of us don’t really know what to expect when it comes to our finances. Not only this, but now that the Government is raising tuition fees for University, it will become more and more difficult for students to know what to do when it comes to managing their money.

With things like tax returns, PPI, council tax, bank accounts and direct payday loan lenders that most of us will have to sort out, we are left pretty much to fend for ourselves, sifting our way through all of the jargon and information to try and figure out how it all works.

National Debt uk

These days, younger people are entering an increasingly confusing financial world, made up of store cards, mobile phones and credit and loan agreements with different short term loans lenders UK. I think that financial education is a necessary step to equip all of us with the relevant skills from an early age to prepare us to be able to make informed decisions as consumers.

Seen as nowadays the average household currently owes around £23,539 on credit cards, loans and overdrafts, it seems that now more that ever something needs to be done to make sure we can sort out our national debt before it gets any worse.

PPI Claims

Have you taken out a mortgage or loan in the past? Were you also asked to buy a payment protection insurance (PPI) policy too? If so you could be among the thousands of people who are entitled to make PPI claims for the charges on policies that have been mis-sold. The scandal is a well publicised one and is less complex than you might think at first, and here we are going to explain the basics in as simple terms as possible. Read further, and you may find that you can claim back charges that you should never have paid.

The PPI Claims Scandal – What’s it all about?

Payment protection insurance is designed to keep up repayments on a loan or mortgage in specific circumstances. Generally the policy will come into play in the event of involuntary redundancy, but sometimes it can also apply to loss of earnings through accident and/or illness. The problem with PPI claims came about a few years ago when it was discovered that some lenders were selling PPI policies to customers without explaining them properly – and in some cases, without explaining them at all! There have always been strict regulations surrounding such policies, and it is now against the rules to sell PPI at the point of sale of a loan.

PPI Claims

How do I Know I’ve been mis-sold PPI?

There have been several instances of mis-selling,including the following: failing to explain to the customer their right to shop around for a good deal; leading the customer to believe they would only get the loan with the lenders PPI package; selling policies that were not applicable to the borrower; not informing the customer that they were being sold PPI. If any of these applies to you then the likelihood is you have a very good chance of putting a successful PPI claims case to the courts.

How Do I Make PPI Claims?

It is very simple to claim back mis sold PPI charges; the first thing you need to do is look online for a PPI claims solicitor to handle your case. You should find an expert in the field who will give you a no win – no fee deal or guarantee you 100 percent compensation. The added advantage of having a professional on board is that you stand a greater chance of success. It only takes a few minutes to get your claim underway, so why not contact a solicitor right now to discuss your claim? Continue reading “PPI Claims”

This PPI Bombshell Could Bring You Surprise Cash

The Payment Protection Insurance (PPI) scandal seems like it’ll never end. The statistics on this scandal are staggering, with well over 16 million policies being considered to be mis-sold since 2005. Major banks and lenders have tried to keep up with the repayments, but there’s room for error. Indeed, the BBC is now reporting that banks may still owe their customers due to one big error: monthly charges, fees, and interest rate increases due to over the limit fees caused by PPI charges. There are other assorted fees that could have been triggered by PPI, which means that the banks are in for another round of trouble.

Could this bring you surprise cash? Maybe. The Financial Ombudsman Service is being conservative on the topic, saying that customers should bring concerns directly to the FOS rather than just speculating. The office will respond as quickly as possible, but the rise in complaints mean that it may take a while before you get any straight answer on the matter.

PPI claims solicitor

Some claims go back decades, with customers reporting that they were mis-sold policies that they held onto for several years. If you add in products like mortgage protection, then the PPI costs may be even higher than expected.

Barclays, Lloyds Banking Group, MBNA, and Capital One have many customers concerned, but the big banks are being very cautious of what they disclose to the public. Indeed, at this time no one bank has disclosed fully how they are calculating the PPI repayments, including these monthly charge claims.

This is why concerned and interested customers should consider going with a PPI claims solicitor that can help them get the money they deserve. Sure, you can do it on your own, but do you really want to play the waiting game? In our opinion, the banks will give people the run around for as long as they can, because it means that they aren’t going to have to pay out. But if you get a solicitor on the case, they know that you mean business. Try to find all of your original documentation, which can help speed up your case. If you decide to go to the FOS, you will need to supply as much information as you possibly can, including how much PPI cash that you have already received.

This new information could bring you a lot more money, or it might not apply to you. But if you don’t look into it, you’ll never know.

Mis Sold Payment Protection Insurance

If you have had a loan, mortgage or credit card then the unfortunate fact is that you might have been Mis Sold Payment Protection Insurance. Lenders in the UK Mis Sold PPI at an alarming rate and now they have to pay it back. It is estimated that there are as many as 31 million Mis Sold PPI policies in the UK which will cost lenders as much as £12Billion pounds. Since lenders gave up on their high court battle fighting against the refund of mis sold insurance policies they have set aside billions of pounds so that they can compensate consumers who were ripped off. If you have been mis sold payment protection insurance there has never been a better time to start your claim.

How do I know if I was wrongfully sold Payment Protection Insurance?

Lenders in the UK Mis Sold PPI on millions of credit agreements. Some say it was greed and some say it was error but the fact remains, lenders mis sold ppi. Lenders Mis Sold Payment Protection Insurance to consumers who did not want, need or ask for it. If you have had this costly insurance policy on either a loan, mortgage or credit card you might have been ripped off and you could be entitled to reclaim the premiums you made towards the policy. Below are a number of possible scenarios which will give you grounds to claim back mis sold payment protection insurance.

• You were pressurised into taking it.
• You were Mis Sold Payment Protection Insurance if you were self employed when sold it.
• You were Mis Sold Payment Protection Insurance if you were told it was compulsory.
• You were told you had a better chance of getting your credit if you took the ppi.
• You were Mis Sold Payment Protection Insurance if you were working part time or on contract when sold ppi.
• You have been Mis Sold Payment Protection Insurance if your medical details were not taken when sold ppi.
• You discovered you were paying ppi without knowing you had it.
• You have been Mis Sold Payment Protection Insurance if you were under 18 or over 65 when sold it.

If the sale of your ppi falls within any of the above categories or many others you have probably been ripped off. You could be entitled to claim back mis sold payment protection insurance to the tune of thousands of pounds.

How do I claim back Mis-Sold Payment Protection Insurance?

Firstly, you will need to find out exactly how you have been ripped off. In order for youo to do this you will need to contact a company that is dealing with mis sold insurances.

Once they have received your contact a personal claims advisor will review your case at no cost and no obligation to see if you have been Mis Sold Payment Protection Insurance. If your claims handler advises you that you have been Mis Sold Payment Protection Insurance they will start their claims process and send you their claims pack.

Is the process to claim back Mis Sold Payment Protection Insurance complicated?

Many companies understands that form filling can be a nuisance so they have simplified their claims process for Mis Sold PPI. All they will need from you is to sign, date and return their claims pack so that they can act on your behalf and reclaim your premiums.

How long does it take to claim back Mis Sold Payment Protection Insurance?

Right now the claims process for Mis Sold Payment Protection Insurance takes approximately 12 weeks. They will often have cases settled far quicker than this but this is the current time frame that a lender has to respond to a claim for Mis Sold Payment Protection Insurance. This claims process will be reduced to 8 weeks later.

What is the average refund for Mis Sold Payment Protection Insurance?

Right now the average refund for Mis Sold Payment Protection Insurance is £3,000. Cases can vary depending on the type of credit and the duration of the ppi but this is currently the average settlement amount.

Categories: PPI

Reviewing a Potential PPI Claim Before the New Year

Are you looking at PPI again? Are you worried about not getting the right PPI claim before it’s all too late? Well, it’s up to you to take it to the next level. The PPI scandal has been well documented in just about any paper that you wish to read. If you’re confident that you’re going to be due some PPI funds, it’s up to you to claim them. The big lenders have set up the accounts already. But if you’re feeling a bit scared, if you’re a touch worried that you’re not going to get things done right, there are solutions out there.

You need to turn things over to a PPI claims company that can really let you get things off to a great start. As long as you’re just willing to do a couple of things, there’s no way that you can be wrong in this case. You just need to move forward as much as possible. Sure, there might come a point where you’re a bit scared and more than a bit fearful but this is just part of the process. There’s no need to feel like it’s impossible to get things done. You have to make sure that you show the lenders that you mean business. Did you know that when you work to get your PPI refund, you’re not just getting all of the money back? You’re actually getting the interest paid out on that money. It’s about 8 percent per annum. That can actually add up to quite a bit if you’ve been without this money for a long time.

PPI Claim

And really, isn’t it the right thing to get your money back? If you are late on the PPI scandal, let us sum it up: you were mis-sold a product that not only you couldn’t use, but that you didn’t need. That’s why PPI is actually such a problem. It’s not just about the fact that people lied. It’s about the fact that you weren’t able to use what you rightly paid for. The big lenders knew this would be a problem, but they cared more about record profits than actually serving you as a customer. Paying back the money and a little extra as a penalty is only par for the course. This is something that they really should have been doing from the beginning.

The more that you can figure things out now, the better off you will be. But what if you just want that hands off experience? That’s where the PPI claims company really comes in. They can take care of everything and leave you relaxed. That’s the way it should be, really. If you don’t have any money, don’t worry, they have you covered. You see, it’s all going to be taken care of for you on a “no win no fee” basis. This means that even if you don’t have any money, that doesn’t matter at all. Check it out today, while it’s still on your mind! The longer you wait, the less likely it is that you can get your money back!

Pitfalls of Payment Protection Insurance

Have you ever fallen for the promises of insurance companies? Their way of sweet talking you to buy different policies is probably one of the most effective marketing strategies that the market has ever seen. First, they will try to guess how you live your life and how you deal with the options that you currently subscribe to. Then, they will present you with the dangers about these things and how important it is to be insured if ever you face a dreaded scenario. An example of this is the way companies market vehicular insurance.

Imagine, even if you are the most careful driver in the world, the fear of getting involved in an accident ,especially if it is due to other variables such as other careless drivers, is already enough to spark fear and make you voluntarily purchase car insurance.  While this practice sounds nice in principle, everything changes when you look at the way the industry works. Why? It is because most insurance contracts have hidden policies that can be grounds for disqualification, among other tactics that can make the companies keep your money while you end up with a destroyed property or rejected coverage claim for an operation. When you look at the number of cases where this is the most common concern for consumers, payment protection insurance is one of, if not the biggest culprit.

Girl with Cash

For starters, payment protection insurance is a policy that deals with a debtors payment scheme. This means that in order for PPI – the colloquial term of payment protection insurance – to work, you should be in the middle of a debt, loan, or anything that requires credit in order for it to be purchased. If you are wondering why, it is because what this policy insures are the payments a person should be doing in relation to his or her debt. Of course, it does this with certain limitations in mind. The first limitation is that the coverage or the obligation of the insurance company will only start if the person is incapacitated to pay because of three reasons:

  • Involuntarily losing a job which may be due to the volatility and unpredictability of the economy. Of course, having a job is a manifestation of access to a stable source of income which is one of the pre-requisites of getting your loan approved. For payment protection insurance policies, the significance of this provision is to make sure that people will not abuse the definition of being incapacitated to pay.
  • Getting involved in an accident.
  • Being diagnosed with a disability that will render you unable to work.

The second limitation is that the policy will only cover for a certain amount, which is still pegged on to your salary, for a certain period of time which is usually around six months to twelve months. This is to make sure that people will have the natural incentive to fix their lives and get back on track as compared to just being a spectator of a series of unfortunate events.

However, all these promises are rarely practiced in reality. As a matter of fact, according the Financial Ombudsman Services (FOS), one of the most up-to-date industry watchdogs that exist in the economy, two out of three insurance claims are actually arbitrarily rejected by the company. The funny thing is, of the rejected claims that are escalated to the FOS office, eighty percent of them are valid cases which the office overturned to have a verdict in favor of the complainants. Given this relatively deceiving practices that payment protection insurance companies do, there is really no proof that this policy is more helpful than harmful today.

Anyone who has been mis sold PPI can now claim their money back. Billions has been set aside for payment protection insurance compensation and the sooner you get your claim in, the better. You can claim on loans, mortgages and credit cards, even where the policy is no longer running.

PPI: If it was mis-sold, don’t hold back and make a claim

As someone who relies on credit, you probably also have been worried how you were going to keep up with the repayments if in case you become unable to due to a prolonged illness, accident, or redundancy. You and every other individual probably have had this concern over the years as your credit agreements existed. When Payment Protection Insurance was designed and introduced to the market, you probably would have believed it was the answer to your worries. Much to your dismay, you learnt that it only ripped you off more money because you were subjected to a mis-selling scheme.

There were others like you, too. Some of them were not even aware they were signed up to PPI as sellers found a way to forge their signatures on the agreement forms. Others did not have a need for it or the product was simply not suitable to their situations, but was still sold otherwise. There were those who were not eligible for the policy’s cover – under the age of 18, over 65, not employed full time, or had a pre-existing medical condition, but nonetheless still forced to sign up. If you come to think of it, there were more people who were misled to buy this product than those who were thoroughly discussed the nitty-gritty of it.

Some were even forced to buy it because they were told that it was a condition of their credit application. You could imagine other schemes devised by banks and insurance sellers that has gone on for years and years just to gain profit out of Payment Protection Insurance.

Payment Protection Insurance

The good news is, since its discovery and the ruling, PPI claims were now made possible and those who were tricked onto buying the policy now stand the chance to get their money back, plus the interest. Some of them did the claims on their own while others have sought the help of PPI claims experts.

You should not be holding back this time especially if you are sure about the mis-selling that happened to you. If you want to make a claim, start by building a sufficient amount of back up through your account-related documents. You will need them as evidence. Be on the lookout for references to Payment Protection Insurance costs and duration in your statements and other paperwork. Attach these to a claim letter you need to make for the bank to acknowledge and review.

Of course, there will be an investigation that could take weeks, roughly 6 or 8 if there are no complications to the case. Let your bank refer to the evidence you presented, the information in their database, and everything else. They may also need to check on their sales channels to really find out what went on when you were offered PPI. Expect to be asked for additional information as needed.

After such time, you may expect a notice from your bank about their decision on the matter. When proven valid, be ready to make an arrangement as to how you will get your PPI payments and interest back. Normally, a cheque will be written to you given that you are clear of all repayment dues with them. If there’s an outstanding amount in your loan or card, you can arrange for the compensation to cover such and receive a cheque for the remainder, if ever.

However, in cases where banks gave a decision contrary to how evident the mis-selling was, or they just did not contact you, don’t be exasperated. You can s till take it up to a different office where it can be reviewed. Lodge a complaint to the Financial Ombudsman Service against your bank and let them take over the claims investigation for you. The Ombudsman will also question your bank’s actions to resolve the issue.

As you see, there’s no need for you to doubt what you need to do when PPI was mis-sold. All you need is to be reasonable and readiness to present the evidence and your claim letter – plus a reasonable waiting time. Whatever your next action is will depend on how the case is decided on. For whatever it is worth, you know you gave it a good shot with much confidence. The success rate of PPi claims made these days has reached to roughly 85% and you may just be a part of it.