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June 2019 – What Will you be Doing?

Enjoying the spoils of a successful claim for compensation after being mis-sold payment protection insurance (PPI)? Or kicking yourself that you claim was too late?

Is the writing on the wall, 21 years after concerns over PPI was raised?

Back in 1998, the consumer association 'Which?', a well-respected organisation, presented preliminary findings on an insurance product known as PPI. It was sold to customers who bought credit from banks and lenders; this could be a credit card, personal loan, car finance, store cards and credit etc.

The concerns raised at that time, were two-fold:

I. Expensive - the report from 'Which?' in 1998 noted the poor value of PPI. They found that for the cover it said it offered, it was very expensive.

II. Exclusions - it was also a product that has many exclusions which meant that many 'ordinary' people would not be covered. The problem was, not everyone was made aware of these exclusions thus many people bought the product thinking they were covered when, in fact, they were not.

It wasn't for another seven years that poor selling practices were highlighted by various regulatory authorities. Over the coming years, financial firms, lenders and banks were fined at various times for poor selling practices.

In 2009, the single premium policy PPI was banned from sale but it wasn't until 2011, when the British Banking Association dropped their protest at the legal decision stating that consumers were entitled to claim compensation for mis-sold PPI.

During this time, 'Which?' had gone on to identify 2 million customers who would not be able to claim on the PPI policy they were paying for every month.

£32.6 billion

Thus far, the PPI compensation pay out across all banks collectively stands at £24 billion but they are all adding more money to their pots with many people believing the final bill will be around £32.6 billion.

So why propose a deadline of June 2019?

The FCA, the successor of the now defunct Financial Services Authority (FSA), believes that the time has come to put an orderly end to the PPI mis-selling saga. They want customers to have their money back but they also want to protect the 'integrity of the market'.

This means that the UK economy is facing a double edge sword; on one hand, people have money in their pocket but on the other, the UK banks are now beginning to suffer, with profit margins hit hard.

October 2016

This coming October, the FCA will makes its final decision, announcing when the deadline will be. It also says there will be a public awareness campaign so that everyone who has a claim for PPI compensation can go ahead and claim their money back.

Why wait? Start your PPI compensation claim today.

What Would you Spend Your PPI Windfall on?

It is hard to remember a time when there was not a PPI scandal rumbling on and on. When the mis-selling scandal broke in to the public domain all those years ago, banks were hoping it would be a flash in the pan, a problem that would fizzle out overnight.

But the consumer was far savvier than this and realising that they could claim all of their money back, they went ahead and did so. To date, around 12 million people have claimed PPI compensation since 2011. But what have they spent it on?

Survey

Surprisingly, there has been very little research to find out how people have spent - or invested - their PPI compensation windfall.

Having said that, there were signs in the economy of people having money in their pockets as various indicators, such as growth Domestic Product (GDP) has a small and unexpected upswing. Changes of 0.2% in terms of GDP is a big change, especially with the 2008 recession still being felt.

True to form, people are spending their PPI compensation with a survey by Voucher Codes Pro in 2014 finding that it took only two and a half weeks for a PPI windfall to be spent.

There was a small minority - 12% - who saved or invested their PPI compensation whilst the majority of people spent it. But what on?

What's on your shopping list?

The survey recorded some great responses from people and the list of the top four PPI purchases were:

I. Holiday - when the purse strings are tight, often the first things to go are the expensive foreign holidays. People either choose to go budget or stay at home. But those who enjoyed a PPI windfall rushed out and booked themselves a great holiday. Is this something you would enjoy?

II. New or improved car - it is the thing that every busy household relies on but again, when money is tight, changing and upgrading the car to a newer model falls a little further down the list. However, those consumers who enjoyed a decent PPI windfall rushed out and bought themselves a new or newer, more economic car. How much would this benefit you?

III. Household appliances - freezer keep packing up? Washing machine not as good as it was? Household appliances get worn out but if you had some spare cash in your pocket, wouldn't a new fridge/freezer and so on be on your shopping list?

IV. Paying the bills - when money is in short supply, getting behind with the bills happens incredibly quickly. This is stressful and unpleasant but many people took advantage of their PPI windfall to catch up with bills.

You could do some or all of the above but only if you lodge a complaint about mis-sold PPI. Do you have PPI? Was is mis-sold?

 

How do Really Know if you Were Mis-sold PPI?

It can be confusing attempting to understand if the payment protection insurance (PPI) policy you have, was actually mis-sold to you.

Here we attempt to de-mist some of the fog that can surround making a PPI claim.

#1 What PPI policy?

If you are asking yourself this question, you may be assuming that you don't have a PPI policy because, surely you would know?

But there is a problem and that is, many PPI were 'sold' to customers by the bank or lender simply adding them to your account without you knowing or, writing to you after they linked it to your account, telling you how great it was.

This is wrong on so many levels but in terms of mis-selling, you will not have had the policy, its terms and conditions etc. explained clearly to you.

Our advice - check every credit product, from personal loans to credit cards, for PPI even if you think you don't have a PPI policy at all!

#2 Your employment status

The terms and conditions of PPI were fairly narrow. The only people who were really covered were those in permanent, full time employment working more than 30 hours per week.

If you were or are self-employed, unemployed, retired or working in temporary or zero-hour contracts, then PPI is unlikely to offer you any kind of cover.

#3 Your health status

Thankfully, most of us enjoy good health but when things do go wrong, you need the peace of mind that any insurance policies you have will pay out when they say they will.

With PPI, you don't have this peace of mind. Put simply, the medical conditions it did and did not cover were again, fairly narrow. There were exclusions too and unless these were pointed out to you, you may have taken out the policy completely unaware that it did not and would not cover existing medical conditions.

Neither did some PPI policies cover things like back injuries or conditions, nor mental health illnesses either.

#4 An obligatory product?

When we apply for a loan etc., is it an emotive decision, fuelled on by the need to have the money to change something. It could be something as basic as buying a new boiler and other home improvements, to upgrading the family car to a more reliable one.

This changes how we view things and so when the bank or lender said PPI was compulsory, customers didn't question it. PPI is not compulsory thus, if you were given the impression that it was, then you could have a claim for PPI compensation.

Find out more and start your claim today too, with Payment Protection Scotland.

Who do you Bank With?

With banks and lenders still adding more money to their PPI compensation funds, it pays to keep an eye on which bank top the list - but why?

The mis-selling of payment protection insurance (PPI) is a scandal that has rocked the British financial sector to its core. And just when you think the saga is finally dying a death, something comes along to reignite it.

Which bank tops the list?

Lloyds Banking Group has set aside billions - £14 billion to be precise - to compensate customers who were mis-sold PPI by its representative and those of other banks, credit cards companies etc. that it owes.

As the biggest banking group in the UK, it is no surprise that they have the biggest bill. Although there are separate banking licences for some of the banks under its umbrella, Lloyds banking Group can name major banks like Lloyds and Halifax as being owned by them.

These banks all have several thousand customers across the UK, all of whom could have a significant PPI compensation claim, hence the largest PPI compensation pot out of all the banks.

How to claim your money back

Claiming PPI compensation is important. The bank took your money for a product that they knew, in most cases, was not suitable for you.

There are many mis-selling reasons;

  • Age - PPI policies cover people between the ages of 18 and 65 however, many banks and lenders sold the policies who were older than 65. This meant, if they tried to claim, they would be unable too.
  • Self-employed - people who ran their own businesses were not covered by the PPI policy but this did not stop banks and their representatives from selling policies to them.
  • Part time employment - PPI policies tended to cover people who worked full time for 30 hours or more a week. Some customers who bought PPI would not be covered if they worked part time or less than 16 hours. This information should have been made clear to you.
  • Compulsory - many customers were told that buying PPI was part of the loan package or were given the impression that for their application to be successful that they had to buy PPI. There is no premise in law that says you have to buy the bank's insurance policy or any other kind of product in addition to a loan.
  • Added without your knowledge or consent - you may have received a letter from a bank or lender that tells you about the great product that they have added to your account. However, if you didn't check the small print carefully, you will not have noticed that the policy was of no use nor of any relevance to you. But you were still paying for it.

Do you have a claim for PPI compensation? If so, call us today to see how we can help.

Claiming PPI Compensation With PPI Scotland

Call - Sign - Relax: The three steps to claiming PPI compensation due to you

For many people, the thought of claiming their money back after being mis-sold payment protection insurance (PPI), fills them with dread.

When you lead a busy life, how will you find time to not only submit a claim, but pursue it? For other people, the thought of writing letters, making phone calls and dealing first hand with a bank or lender are not tasks they want to complete.

You may feel that you need help, an expert hand to guide you through the process and represent you too.

Criticisms

There has been a lot of criticism levelled at claim management companies, also known as CMCs. Payment Protection Scotland is a claim management company, specialising in helping people claim back PPI compensation.

Like other professionals we charge a fee for our service. If you went to a solicitor for legal help and representation, you would expect to pay? Why not other professional services?

But like all professions, there are some companies who are better than others. Some are motivated by making profit, others are motivated to help people fight back against the powerful financial sector.

Not a small-scale problem

Mis-selling of PPI was not on a small scale, affecting only a few hundred people. It affects thousands of people with billions of pounds due in compensation - and this is in spite of billions of pounds already been paid out.

Experts such as BBCs Paul Lewis has said that he believes only 40% of those with a claim for PPI compensation have done so. That leaves another 60% of affected customers yet to make their claim.

Why not get help?

If you have a claim for PPI compensation, why shouldn't you get help from a reputable company with a high success rate?

Payment Protection Scotland operate a three-step process;

Step 1 - Call us

If you believe you have a PPI compensation claim, or would like to know more about how to claim, all you need to do is call us. There is no obligation and no pressure to continue.

Step 2 - Sign

In order for us to act on your behalf, you need to give us written permission to do so. You also need to agree to our terms and conditions if we are to go ahead and make PPI compensation claims on your behalf.

Step 3 - Relax

You relax why we do everything on your behalf. We keep you in touch at every point of your claim, so you know what is happening but without the stress.

With a 93% success rate, we are the claim management company to call. Call Payment Protection Scotland today!

 

Why Was PPI Mis-sold to YOU?

Are friends, family and work colleagues enjoying their PPI windfalls? Wondering if you have or how you can make a claim? If so, read on…

If you have PPI, the likelihood is you have a claim for compensation. Payment protection insurance (PPI) was mis-sold to thousands of customers. You may know you have PPI - you may have even agreed to it! - but it is also possible there was a PPI policy added to other accounts without you knowing.

Here we re-cap on some of the reasons why PPI is classed as being mis-sold. Which one do you think applied to you?

#1 Your employment status

Your employment status at the time you were sold PPI is important because it has a direct impact on whether PPI is useful or not to you;

  • Self-employed - you are unlikely to be covered by a PPI policy or, if you are, the terms and conditions are such that the policy offers little, if any, real cover. For example, some self-employed people, in order to make a claim, would need to close their business down.
  • Part-time employment - not all PPI policies covered people who worked less than full time hours every week. Those who worked less than 30 hours a week or, on temporary or zero-hour contracts were unlikely to be covered.
  • Unemployed - if you were unemployed, the PPI policy would not cover you.
  • Retired - again, if you had no income other than pensions and so on, but not a wage from full time employment, you were unlikely to be covered by a PPI policy.

In most cases, the bank, on looking at your application for a loan, credit card and so on, would have your employment status in front of them. After all, you would have to declare that had the means to pay the money back but, despite knowing your employment status, still sold you a PPI policy, either at the time or later, via a sales phone call.

#2 Your health

Another broad category of mis-selling relates to how much you know or were told about the policy.

For example, were you made aware of what medical conditions and illnesses were and were not covered? Many people were surprised to learn that back problems and mental health issues were not covered by the policy.

Both of these medical conditions are two of the top most reasons why people are unable to work, both in the short and longer term. Imagine the devastation of being too ill to work and one of the insurance policies you were relying on let you down.

There are many reasons why PPI was mis-sold to you. Find out more today with Payment Protection Scotland and you too, could be enjoying a PPI compensation windfall very soon.

Claiming compensation for mis-sold PPI – how did the bank hoodwink you?

Claiming compensation for mis-sold payment protection insurance (PPI) is something that many thousands of people have already done. But, with an estimated 60% of eligible customers yet to make a claim, understanding why and how it was mis-sold to you can be an area of concern.

Payment Protection Scotland is committed to helping all of its customers to claim the money to which they are entitled. Find out which of these mis-selling reasons apply to your claim.

REMEMBE: it is not a case of choosing one reason, as there could be two or three reasons why the PPI policy was mis-sold to you.

#1 Age

Most PPI policies covered people aged 18 to 65 meaning that if you were older or retired at the time the policy was sold to you, you would not have been covered by it, making it effectively worthless.

#2 Employment

There are a few grey areas when it comes to employment and PPI:

  • Hours of work - most PPI policies covered people who worked more than 30 hours a week, although banks still sold the policy to people who worked part time. Some policies may have covered you if you worked 16 hours a week or more thus, check the small print.
  • Self-employed - people who were self-employed are unlikely to have been covered by the PPI policy that was sold to you, even though the bank knew that you ran your own business. To make a claim, some policies dictated that you had to close your business in order for your claim to be valid, hardly worth it on a policy that would pay out for a fixed time (months not years).
  • Student - if you were a student and were sold PPI, you would most likely not have a claim under the policy as you would not necessarily have an income to replace thus the policy wouldn't make repayments on loans, credit cards or whichever debt it was attached to.

#3 It was a compulsory purchase

In some cases, the bank representative did not make it clear enough that the purchase of PPI was optional.

There can be some confusion as banks and lenders can stipulate that to a certain extent, you do need to have an insurance policy to protect the loan etc. This does NOT mean that you cannot shop around and get a better deal on another, like-for-like policy. In the case of PPI, it was so expensive that you would have got a far better product for a lot less.

These are just three reasons why PPI could have been mis-sold to you - and we know of more! Contact Payment Protection Scotland today to find out what they are.

 

Why is a PPI Deadline Being Considered?

The Financial Conduct Authority (FCA) opened discussions on whether imposing a blanket PPI deadline would be the right move. This latest twist in the saga has raised questions about the FCA and whether they have the customer's best interest at heart or that of the financial sector.

Not the first time

This is not the first time that a blanket PPI deadline has been discussed but, with the FCA being in combative mood in the past, the idea was quickly knocked from the table. So what's changed?

  • The head of the FCA has changed

Martin Wheatley, the previous head of the FCA was around when the scandal of mis-sold payment protection insurance (PPI) broke. He had a combative approach, where banks and lenders were told in no uncertain terms to stop dragging their feet and reimburse their customers.

The FCA remained in this position for a long time but his departure in late 2013 left the organisation without a boss. Andrew Bailey was announced as the new head of the FCA in January 2016 and is expected to restore calm to the process.

But some say, this means the banks will, once again, be cosied up with their regulatory boy making it harder to bring about proper change. Martin Wheatley was ousted because he was seen as too hostile and intrusive to the banks which, some say, is exactly what was needed.

  • Chancellor of the Exchequer, George Osbourne

The Chancellor has made it known, maybe not publically, that he wants an end to the PPI mis-selling saga. This may not mean he wants customers out of pocket but the opinion is that the banking industry needs to clear up its mess quickly so that a line can be drawn underneath the whole debacle.

Those that are critical of a blanket PPI deadline say that it will be the customer that misses out as it essentially presents an opportunity for the banks and financial companies to sweep the whole mess under the carpet, questioning whether any lessons have been learnt at all.

Promotional campaign

As the FCA announced it would be consulting with key stakeholders regarding a PPI deadline, it also said that there would be a promotional campaign to ensure that no one with a compensation claim missed out.

However, some people have criticised this move as they say that blanket promotional campaigns rarely make it to the people that need it. These kinds of campaigns tend to make people believe that it affects everyone but themselves!

Make your claim for PPI compensation

There are thousands of people affected by the mis-sale of PPI who have yet to make a claim for compensation - are you one of them?

PPI Facts and Figures

Have you ever wondered how BIG the mis-selling of payment protection insurance (PPI) scandal actually is? Can you estimate the figures involved?

Take our quick quiz to see if you are a PPI expert…

Qu.1 How many claims for PPI compensation are successful?

  1. 60%
  2. 54%
  3. 85%

Overall, the rate for success when it comes to PPI compensation claims is thought to be around 85%. At Payment Protection Scotland, we boast a success rate of well-over 90%. We put this down to our assessment process. We look at your potential claim for PPI compensation from all angles, making sure your case has the best chance of success.

Qu.2 How many people in the UK were mis-sold PPI?

  1. 1 in 10
  2. 1 in 5
  3. 7 in 10

The number of people the PPI mis-selling scandal affects is thousands upon thousands meaning that there is a very good chance that YOU are affected by it too. Overall, 1 in 5 of the 60 million people in the UK are thought to have been mis-sold a PPI policy. When you consider this means an average pay out of £2,750 per person, you can see how the figures start to add up.

Qu.3 How many PPI policies had been sold since January 2001 until the scandal broke some 10 years later?

  1. 30 million
  2. 1 billion
  3. 50,000

The scale of the PPI mis-selling is gargantuan, with PPI being the most mis-sold financial product of all time. Many people are hoping that it never happens again and thus, changes have been made to how policies of this kind are sold to customers. The wholescale mis-selling of PPI is thought to have started in January 2001, with over 30 million PPI policies being sold from that point until the scandal started to break in 2011.

Qu.4 How many PPI complaints or cases for compensation have been made?

  1. 26,000
  2. 1 billion
  3. 14 million

As soon as this article is published, the answer to this question will be wrong because cases for compensation for mis-sold PPI are being made all the time. However, at the time of writing, some 14 million complaints had been made about PPI with the total compensation bill around £24 billion.

Qu.5 Payment Protection Scotland can help you make a claim if…?

  1. You have PPI
  2. You understand there is a fee for our service
  3. You call to start to your complaint right NOW
  4. Or all of the above?

Payment Protection Scotland can help you make a claim for PPI compensation if you have at least one PPI policy on an account and you believe it was mis-sold to you. We charge a fee for our professional services, a % of the final amount of compensation you are awarded - but you only pay if your claim is successful. And yes, you can start

Why and how was PPI Mis-sold for so Long?

The mis-selling of PPI did not happen over a few short months but rather over several long years - but why? What fuelled the mis-selling of this insurance product for all this time and what has changed to stop it from happening again?

November 2015 saw a small newspaper article published that many people may not have seen, unless they scoured the financial section of the papers or online sites. RBS announced it was suspending bonus related pay for its retail staff to prevent, it said, the possibility of mis-selling happening again in the future.

It is unclear whether other major high street banks and lenders have taken this step but the fact that RBS, one of the biggest banking groups has taken such a step is indicative of what fuelled the mis-selling of payment protection insurance (PPI), and why it happened on such a large scale and went unchallenged for so long - money.

Profit and commission

In terms of money, there are two financial reasons why PPI continued to be mis-sold for so long. Two parties stood to gain the most from selling an insurance product to people that they didn't need…

  1. The bank or lender in terms of profit generated

Profit is something that every business needs to make. For banks, it is very important as posting low profits or losses makes them vulnerable to take over. The financial markets are competitive places, with the health of a bank measured in terms of profits posted.

PPI made banks a huge amount of profit. In fact, the vast majority of the PPI premium you paid every month was profit for the bank.

  1. The member of staff earning a handsome commission and bonus for meeting sales targets

Unfortunately, there is a second strand to this money-making off the back of selling PPI policies. The sales representative or insurance broker themselves, also made a handsome commission. There are also stories from bank staff that they also received bonuses for meeting sales targets for PPI, with the underlying principle allegedly being sell policies at all costs.

There was a recent case (2015) in which a disgruntled customer claimed her commission back because, she said, if she had realised how much commission the broker was to receive on the sale on the PPI policy to her, she would have questioned the cost of the PPI policy. The repercussions of this case are yet to be felt, its influence unknown to impending PPI compensation claims, as well as those already settled.

Making your PPI compensation claim with Payment Protection Scotland

We have worked with thousands of customers to successfully claim compensation after PPI was mis-sold to them. And we can and will help you - call us.