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Claim the PPI Compensation You Are Entitled to!

Since 2011, there have been a large number of articles in the media highlighting the mis-selling of payment protection insurance or PPI on loans, store cards, credit cards and mortgages.

We were all being encouraged to look at our credit agreements to see if PPI was part of the contract.

40% of People Have Done Just That

Nearly seven years to the date the first few PPI claims were made, around 40% of people entitled to make a claim for PPI compensation have done so.

That leaves 60% of customers with a claim yet to make one - are you one of them?

Not Always Easy to Spot

Looking at your credit agreement paperwork, you may find in difficult to see if you have been or are paying payment protection insurance because different lenders have different names for payment protection insurance.

Some store or credit cards, for example, called their PPI products 'card care'. Repayment protection insurance was also an oft-used name for payment protection insurance.

Mortgage lenders also had a variety of names for these products.

On looking at your credit agreement documentation, if you see a payment for repayment protection insurance you may have a form of PPI on the account.

What PPI Promised…

The basic idea behind payment protection insurance was that in the event you were unable to keep up repayments on your loan or credit card due to illness and not being able to work and so on, the PPI policy should kick in, and make the repayments for you.

But not all customers needed PPI. For example, some customers already had payment protection insurance policies in place, and didn't need another policy.

Some PPI policies were also limited in the cover, whilst others had a waiting time of three months or more before a claim could be made. All these limitations and instances of 'no cover' in the terms and conditions of PPI were not made obvious to the customer.

In some cases, some people were not asked or made aware that they had this type of payment protection insurance on their loan!

This mass mis-selling of payment protection insurance to customers across the UK now mean that customers are now claiming back money owed to them 'en masse'. Banks and other financial institutions have put aside an estimated billions of pounds to cover PPI compensation claims.

How we Help

We make sure that you have a claim for mis-sold PPI. We will then take your case forward, getting back all of your money. Why not talk to our expert team today?

PPI Myths in 2017

The mis selling of PPI on loans, credit cards and mortgages has had extensive media coverage. The product that we were told would cover us in the event we couldn't make loan repayments as a result of redundancy or illness was, for some people, of little or no use.

PPI policies were sold to customers on a series of myths and fallacies, with key information omitted from the conversation (if there was a conversation…).

Here are top five mis selling myths, and the facts that you need to know when you make your PPI compensation claim BEFORE the deadline of August 2019;

Myth 1 - Some banks and lenders told (or implied) to customers that the purchase of their 'own brand' PPI was compulsory.

Thefact is, that whilst your loan provider can insist you have some form of repayment protection insurance, it doesnot have to be their 'own brand' PPI product.

Myth 2 - Even if you have a PPI type policy in place, you must have a duplicate policy to cover that particular loan.

But thereality was that some customers already had an 'umbrella' income protection type policy which would have offered sufficient cover for the loan or credit card.

Myth 3 - you were more likely to be accepted for a loan if you took out the optional additional loan PPI policy.

Fact - No representative of a financial institution or bank should have implied or made it known to customers that they were more likely to be accepted for a product by taking out PPI. Credit facilities are offered on a credit rating system, rather than preference.

Myth 4 - everybody is covered!

Fact - this is not the case. For example, car insurance providers payout on an average of 80% or more of the claims made BUT PPI policies paid out on only it was 15% of claims made. Terms and conditions of loan PPI policies may not have been fully explained to you, so the 'employment benefit' part of the loan PPI would be useless, for example, to anyone who was self-employed or retired.

Myth 5 - banks will automatically pay back to you the loan PPI payments you have made!

Not true - as a customer, you must make a claim to your loan provider if you think you were mis sold PPI.

If you think any of the above has happened to you, then call Payment Protection Scotland today to see how we could help you.

PPI and Commissions Based Sales

As many customers are now finding out, they were mis-sold Payment Protection Insurance on their loan, mortgage or credit card.

Whist customers make compensation claims to reclaim premiums paid AND interest, there could soon be more compensation coming your way.

Selling commission-based products has been an issue for some people all along, and the ruling in the Plevin case has now been interpreted.

If the commission paid on the sale of PPI was higher than 50% and you were not told, you should be compensated.

How did mis-selling of PPI happening in the first place?

Profits and commission.

As a sales advisor for a bank, an employee would often receive an incentive payment if they sold various products.

This in itself is not a bad idea… if you need the product.

For some people with no savings and possibly employment that may be under threat, taking out a PPI policy or another insurance policy of this kind would be a sensible move.

Did you know...?
It was found that some financial institutions operated a 'first past the post' system in which the first 21 members of sale staff to reach a target would receive a £10,000 bonus

Where it went wrong with the selling of PPI was that advisors received large amounts of commission for selling it, meaning that the banks made staggering profits.

In fact, it has been estimated that at the height of the mis-selling, some banks were making up to 80% of their profits from PPI sales (Source: BBC money)

What measures are being put in place to stop this happening again?

The Financial Conduct Authority is clamping down on commission based sales within the financial industry.

According to one report, bank staff still feels 'under pressure' to sell products. Whilst commission based selling isn't a problem - after all, it acts as a incentive - it can cloud the judgement of an advisor to sell products to people that don't really need it.

Did you know...?
Sales staff at one financial firm could earn as much as £10,00 on top of their earning with commission-based selling of PPI.

If you have a loan, credit card or mortgage that you have taken out in the last 6 years or so, then it would be worth checking your documentation to see if you have PPI.

If you think you were unfairly sold PPI, you should claim PPI compensation.

Why not call out team for a no obligation chat?

2017 Re-Cap: PPI Mis-Selling – Letters from Lenders

In 2013/14, lenders and banks were told to send letters to their customers to highlight the fact that they may be entitled to make a compensation claim for mis-sold Payment Protection Insurance (PPI) on loans, credit card or mortgages.

Letter guidelines

The then Financial Services Authority - now the Financial Conduct Authority - issued a set of guidelines for the PPI letters to ensure that potential claimants did not dismiss it as yet another marketing letter.

Banks were heavily criticised by the leading consumer group 'Which?' for making the PPI mess worse with ineffective communication to customers.

Advertising activities, such unsolicited text messages or SPAM messages, have made many people wary of anything that mentions PPI or suggests huge amounts of money.

Therefore these letters had to be:

  • Be free from marketing material as well as financial jargon
  • State clearly the letter contains important information and should be read carefully
  • Clearly state that the customer may have been mis-sold PPI type policy
  • State that the customer, as a result, may have suffered 'financial loss' and may be entitled to compensation (also termed a 'redress')
  • Clearly emphasise that there is a3-year time limit in making a compensation claim from the date the customer receives the letter and that they need to carefully consider making a claim…

… And this means that if you received a letter back, the three-year time limit is close. Have you made your claim for PPI compensation?

What can you do NOW?

  • Don't wait for the three-year time limit - Check your account, statements, documentation etc. It may take time, especially if you have several credit accounts but it is worth investing the time NOW. If you see some form of PPI (it may have a different name), consider whether you agreed to this policy or, read the terms and conditions of the policy: are you covered?
  • You can contact your bank and/or lenders yourself or you can use a claims management company like Payment Protection Scotland.
  • We offer an effective service to help people make a PPI compensation claims. We charge a fee for this service, payable on successful completion of your compensation claim.

As an established PPI compensation claim specialist company, we have an enviable reputation for making successful claims on behalf of our customers.

If you decide to continue with us, then all you need to do is sign a few forms, sit back let us to do the chasing on your behalf!

Why not contact us, and see what Payment Protection Scotland could do for you?

PPI Customers Have Complaints Upheld by the FOS

Making a payment protection insurance (PPI) compensation claim involves you, as the customer, to prove you were mis-sold PPI on your accounts or products.

For the majority of customers, in Payment Protection Scotland's experience, this is a fairly straightforward process.

The mis-selling of PPI to customer in the UK was done in such a way, that the majority of customers find that their claim is successful.

Not the Whole Picture…

Unfortunately, some banks and lenders still find reasons not to refund PPI. In the event of this happening to any of our customers, we recommend that the case is taken to the Financial Services Ombudsman (FSO).

This is summary of one such case - the full version can be found on the FSO website as can other examples of complaints being both 'upheld' and 'not upheld'.

The customer decided to purchase the house of her grandparents. Her grandparents had been renting the property for some time and when the landlord decided to sell, the customer decided to buy the property with her grandparents still living in the property. The customer would be living elsewhere.

Hence, the customer arranged a mortgage with the bank making it clear she would NOT be living at the property. She purchased PPI, after completing the forms with the bank representative.

Unfortunately the customer, some time later, lost her job. She made an application under the PPI policy but was declined. The reason was that she was not living at the property and this was part of the policy's terms and conditions. On complaining to the bank, she was told the decision would stand.

She took her case to the FOS who looked at all the evidence and found in favour of the customer. Even though it was in the terms and conditions that she must be living at the property, this customer had made it clear to the bank representative that this would not be the case.

Although the bank had not recommended the policy to her, the representative was more than aware that she would not be living at the property and that the PPI terms and conditions would effectively exclude her from cover.

The bank was told to put things right and that meant compensation, ensuring the customer was put back to the financial position she would have been in had she not been sold PPI.

If you think you have a PPI claim, why not call us first to talk through your potential compensation case? We offer straightforward advice - call us now!

Why Does PPI Compensation Awards Vary?

We have all read the headlines and marvelled at some of the large payment protection insurance (PPI) compensation settlements customers have received.

But, just why are some of these compensation settlements so high when compared to the average pay out of £2,750?

PPI & Credit Cards

Many of the larger pay outs are around PPI policies on credit cards. There are several factors why PPI compensation can reach such large proportions:

I. TIME - many of the customers who have received five-figure sums in PPI compensation had their credit card over along period of timeand therefore, could have been paying out hundreds of pounds each year for the PPI policy.

II. NUMBER of credit cards - one customer who received a large pay out of over £65,000 hadmore than one credit cardand had also had these for a long period of time. These two factors combined meant that the compensation due soon totalled a large amount.

III. INTEREST - what does significantly boost PPI compensation is the application of interest andhow the premium each month was calculated. PPI premiums varied on credit cards as the amount a customer paid in PPI premiums each month depended on the outstanding balance. Hence, if you were up to the card limit and only paid the minimum each month, your monthly premium would be higher than if you paid it off. In this way, one business woman with two cards over many years which were often at their limit, received over £82,000 in compensation.

Why do credit card providers have such a large slice of the PPI compensation market?

Applications for credit cards were easy forms to fill in back in the economic heyday of the 1980s and 1990s, more so with the advent of easy credit with online applications.

Many applicants will not have noticed a small box at the end of the very small print that informed the customer PPI was available on their account.

Our Terms of Services - Clear, Transparent and Easy to Understand

Payment Protection Scotland's 'small print' is not small or hidden. We offer a fully transparent service and our terms and conditions are available on our website.

Our friendly customer service advisers will be more than happy to talk through the no win, no fee terms of service we offer.

We are a claims management company that specialises in making PPI claims on behalf of customers. We will assess your case and suggest the best way forward.

Contact us today for further information.

Could You Be in Line for MORE PPI Compensation?

The announcement of a PPI dealing of 29th August 2019 has sent a shock wave through the consumer organisations and lenders alike.

Banks wanted an earlier date whilst some consumer organisations didn't want a deadline at all. But, if the Financial Conduct Authority thought that imposing a deadline would be trouble-free, they were very much mistaken.

The deadline - what it means

The deadline means that anyone who wants to claim compensation for mis-sold payment protection insurance (PPI) has until 29th August 2019 to do so.

After this time, it will be too later to open a new case. This means checking NOW if you have a claim and if you decide to pursue compensation after being mis-sold this now infamous insurance policy, then you must do so before this date.

Cases that have been opened before 29th August 2019 but have yet to be resolved will continue in the system until the matter is settled, either in your favour or against. You can still refer the case to the Financial Ombudsman if you feel the decision being against you is unfair.

The deadline - one significant benefit to consumers

The deadline has been met with derision by many consumer groups. The only group who seems to have taken a more cautious 'it may be a good thing for consumers' is Citizens Advice.

However, the fast majority of consumer groups and financial market experts are saying that in their eyes, imposing the deadline is a premature move. This is because, they say, under less than half of the people who have and eligible claim for PPI compensation have yet to lodge their complaint.

If all these consumers decide to claim pre-the deadline date, the system will be swamped.

But, there is one golden ray in the announcement of the PPI deadline. And that is that the FCA has made their decision on how the findings of the Plevin Vs. Paragon case is to be applied.

You may re-call the Plevin case. The defendant argued that if she had known how much commission was being paid to the broker for arranging the PPI policy, she would have questioned the cost of it.

The court agreed and now, if the bank, broker or lender failed to disclose that more that 50% of the cost of PPI was in commission, you will now receive this money back too.

What should you do now?

Banks and lenders should be writing to you to tell you this new ruling.

But if you are ready to make your PPI compensation claim, you may need our help. Call us to find out more about our no win, no fee service.

Is Payment Protection Insurance any Good?

There many insurance products that you can buy in to that cover all kinds of eventualities. From life insurance cover to critical illness insurances, there are many products, many brands and different levels of insurance cover, all at differing costs.

PPI was one of them. Despite is poor reputation as a result of the mis-selling scandal, it is possible to buy PPI. In some cases, it may be the right insurance policy for you.

Clearly, protecting the things we love and own is important. There are some insurances that are more important than others. Some insurances are compulsory;

  • Car insurance- compulsory and essential, driving in an uninsured vehicle will lead to serious consequences.
  • Buildings and contents insurance- important too, should anything structural happen to your property or should there be issues with the contents of a property and so on. Some mortgage companies will insist you have buildings insurance to cover the cost of re-building your property.
  • Critical illness cover and so on- protecting ourselves is important too, especially if one person is responsible for paying the mortgage and so on. This type of insurance can give us peace of mind.
  • Income protectioninsurance- is similar to critical illness cover but covers you to the level of your income.

With any kind of insurance policy, seek independent financial advice to make sure that the policy is the right one for you.  

So, there is nothing wrong with PPI?

There may be some instances in which PPI is the right policy for someone to have. There are all kinds of variable and factors that affect this decision;

  • Benefits from work- many people a generous benefits package from work which should be considered. For example, if you are off ill for any length of time, you may enjoy 3 months' full salary from work before your income drops. This means you won't need a PPI type or income protection policy to kick in until after 12 weeks.
  • Check the insurances you already have- PPI in many cases was a duplicate policy. This means banks forced it on people, telling them that other insurance products were not good enough. They also said that a customer needed to take out the bank's own PPI product.
  • Value for money offered- PPI in the case of mis-selling was expensive and poor value for money. In other words, you were paying a hefty monthly premium for little cover.

Can you claim PPI compensation?

It may be that you can claim back all your PPI premiums, along with any other costs and fees including the commission paid if it was more than 50% and you were not told this.

There are many reasons why PPI was mis-sold. Many people - just like YOU! - have genuine claims for compensation. Are you one of them? Find out by calling Payment Protection Scotland today.

Do you need PPI?

The scandal surrounding the mis-selling of payment protection insurance (PPI) cannot be avoided, more so now that the August 2019 deadline has ben announced.

It seems that on a regular basis, articles appear in newspapers and on the web about the mis-selling of this insurance product.

Many people have already claimed compensation but many more are yet to do so - are you one of them?

PPI is still a genuine product but, like all insurance products you need to be sure that the policy provides the cover you need.

What is PPI?

PPI is designed to cover the payments on your debts - such as loans, mortgages, credit cards etc. - should you be unable to work due illness, accident or redundancy.

The policy will make repayments on the product it covers but for a limited time and dependent on which company is providing your cover.

In some cases, PPI payment cover lasted for 12 months, whilst other policies stretched to 24 months.

What PPI does not cover

It is suggested as with all insurance products, that you examine in detail what is and what it not covered.

In most cases, a run-of-the-mill PPI policy will not cover:

  • The first 90 days or 12 weeks after you have stopped work - you will need to make any payments on the loan etc. up to this point. Can you afford to do that with less or no income?
  • Various illnesses are NOT covered - check these exclusions carefully, as they may include illnesses you could be 'prone' to.
  • Pre-existing conditions or illnesses you already know about and this means the most likely reason why you cannot work is not covered.
  • PPI will not provide cover for those who are retired but the bank still sold it to you…

Do you NEED PPI?

PPI can be useful in certain circumstances, e.g. you have a credit card, loan or mortgage and you want or need an insurance policy that will cover your repayments on one of these products.

However, considering the numerous exclusions and specific cover offered by PPI, you should check carefully if the PPI policy is providing an acceptable level of cover.

Some people have benefits with their employer that makes PPI surplus to requirements. These benefits may include;

  • A comprehensive employee benefits packages such as sick pay being your full salary for 6 months.
  • You may have savings which would, in the short term, be enough to make any payments
  • Your partner's income would be sufficient to make payments on your mortgage etc.

Were you mis-sold PPI?

PPI can be, for some, a useful product.

However, the wholesale mis-selling of the insurance has given it a bad name as an insurance policy, with many customers questioning its worth.

Payment Protection Scotland is a specialist claims management company, offering a PPI claims service to customers from across Scotland.

With no upfront fees, you can be confident in the service that we offer. Contact us TODAY!

Payment Protection Insurance – are you sure you don’t have a claim?

The announcement of a 2019 PPI compensation deadline announced a few short months ago, the debate around PPI has been re-ignited.

What dominates the headlines this time is the fact that less than half of those entitled to make a claim for PPI compensation have done so.

So, check again - are you really sure you don't have a claim for PPI compensation?

Have you been in receipt of a loan, had a credit card or store card or opened a newmortgage in the last 12 years or so?

The likelihood is that most people have some form of credit facility with a major bank or lender in Scotland as well across the UK.

Banks make their profits by lending money to customers and they made gigantic profits on the back of selling PPI to customers. If you knew the majority of the cost of PPI was profit for the bank, would you have still bought and at the price they were charging?

It is NOT a complicated process...

If you find you have PPI on your accounts, you may have a claim for compensation.

However, the onus has been placed on the customer to prove they were mis-sold PPI, the four top mis-selling reasons being;

  1. You were unaware you had bought PPI- in some cases, the product was automatically added to the account without your permission.
  2. You were told it was compulsory- PPI, along with many other types of insurances of this nature, are optional. Covering your income is not a bad idea but you need not have bought the bank or lender's own product. Some customers already had insurance cover in place therefore did not need an additional product.
  3. Some customers were led to believe that they would be more like to be accepted for a loan or credit card etc., if they took out the PPI policy - this is unfair selling practice and simply not allowed. Credit is based on your credit rating, nothing else.
  4. You were retired or self-employed at the time or had a pre-existing medical condition- this relates specifically to the terms and conditions of the PPI policy. Many customers would not have been covered in many cases and, according to a variety of complaints upheld by the Financial Services Ombudsman (FSO), they would not have taken out the policy of these terms and conditions had been fully explained to them.
  5.  I have no paperwork or policy numbers

It may still be possible to make a claim. You can pursue this yourself or you can engage the services of a specialist claims management company like PPI Scotland.

We charge a fee for our service which we will clearly explain to you if you decide to proceed. This is a flat fee, although we charge on a no win, no fee basis.

Contact us today, to talk to our friendly team about making your PPI compensation claim today.