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How Much PPI are you Owed?

Payment protection insurance (PPI) is now an infamous term that virtually everybody in the UK is aware of - and this could be the reason why so many of us are yet to make a claim for compensation!

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Familiarity, so they say, breeds contempt and this is possibly the reason why so many customers are yet to claim but with the PPI deadline 2019 firmly set, the time has come to make a decision - will you claim your money back?

What is PPI?

PPI is an insurance policy that should protect the customer and make repayments on loans etc. in the event they are unable to do so. You may be too ill to work or have been made redundant. In other words, your income has dropped.

The problem was that the terms and conditions of PPI were so tight and restrictive that in all honesty, that it only covered a minority of policyholders in a small number of circumstances.

PPI also offered very poor value for money, with better, cheaper policies available but the banks did not encourage their customers to seek them out.

The History

In the 1990s, there was a challenge made against the addition of PPI on loans etc. as many customers felt that they were not being given a choice when it came to PPI. Customers felt they were being forced to pay for an insurance policy that was of little or no use to them.

The initial ruling was in favour of the customer and some customers did receive PPI compensation. However, the banks still thought they held the balance of power and, in many cases, made 'offers' rather than calculating an exact compensation figure.

Customers had various organisations on their side and they were made aware this was not 'good enough'. Banks faced the prospect of having to make PPI compensation payments that would total millions of pounds.

But it wasn't just millions. As the true scale of the PPI mis-selling became obvious, the compensation bill ran into billions. Monthly compensation figures from across the banks and lenders have remained steady - they are STILL paying out millions of pounds each month in PPI compensation.

It is estimated that 16% to 25% of the debt amount (that is your loan or mortgage) was paid out in PPI - just imagine getting back 25% of your £10,000 loan PLUS interest?

Do you know how much you are owed in PPI compensation?

PPI Scotland is a claims management company that specialises in helping customers claim back PPI. By working with you, we can calculate how much PPI compensation you are owed.

If you do nothing else, look through all your statements and account documents to see if you have PPI on any of your accounts. If you spot it - or think there is something similar - then do not delay: contact Payment Protection Scotland!

 

Commonly Asked Questions About PPI?

Our customers have many questions about the process of claiming back payment protection insurance (PPI) premiums, as well as many other concerns. In this article, we answer some of these questions, but we can't answer everything here - just call us with any other questions you have!

Questions

Can I make more than one claim with Payment Protection Scotland?

Yes, you can! Each account on which you have PPI will constitute a separate claim from your lender and there is no limit as to how many claims you can make. After all, it is your money…

Can I make a claim on a loan or other account that has been 'paid off' and closed?

Yes, you can, there is nothing stopping you only deadlines based in consumer law. You will need to have been making payments on the account within the last 6 years, as set down in consumer law.

Is there a maximum amount that can be claimed?

No, there is not as it is entirely dependent on how much you borrowed, over how long and how much the PPI was charged at.

The average PPI claim has been estimated to be around £2,750 but you could be able to claim back much more than this, or it could be a lot less. Once we have your full details and information, we will be able to provide you with a more accurate figure of how much compensation you could claim back.

The latest ruling on the Plevin case about commission payments could also mean a bumper PPI pay day for you. If you were charged more than 50% commission by the broker for arranging the loan and you were told about it, you'll be entitled to this money back too.

How does the Payment Protection Scotland process work?

Once you have contacted us, we will gather a variety of information and detail from you, including the lenders that we need to contact on your behalf. However, before we can do that, we will need written permission from you allowing us to act on your behalf, contacting your bank or lender as a part of the whole process.

These forms will be sent to you and once we receive them back from you, completed and signed, we can really begin to progress with your claim.

How long does it take to get my compensation check?

Providing we have the paperwork, signatures and all the relevant information needed, and your bank or lender does not contest your claim, they will hopefully make an offer quickly. There are deadlines by which the bank or lender must response to your PPI complaint, but this will not necessarily mean that you will have a PPI offer made in this time.

They may write to you, telling you they are looking at your case but that it may take a few more weeks, giving you a possible date for resolution - this is simply because there are so many claims for PPI compensation being processed by all banks!

Payment Protection Scotland can help you make a claim for compensation - call us TODAY!

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The Top 5 PPI Mis-selling Reasons

With the promotional campaign backed by the Financial Conduct Authority underway, the claims for PPI compensation are expected to increase. Customers are being urged to 'make a decision' on whether to claim PPI compensation by the 2019 PPI deadline.

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With the clock slowly ticking, it is important for you to decide too, if PPI compensation is something you want to enjoy. But what are the top 5 reasons for PPI being mis-sold?

Making it on the list at number 5 is those PPI policies sold to people who wereself-employed, retired or unemployed

Effectively the policy is worthless as the policy only applied to people who were employed full time and with a contract. Therefore, anyone working less than 16 hours a week or on a zero-hours contract probably wouldn't be covered by PPI either. If you were self-employed and made a claim it would mean closing your business, not something that many people needed to do or wanted to do in the case of short term illness.

Nudging at number 4 was the selling of the policy to people withpre-existing medical conditions

It would have been an unpleasant surprise if you had attempted to claim if you were unable to work for any length of time. Thinking you were being financial prudent, only to find it was a complete waste of your money as your pre-existing medical condition was not covered but the bank didn't tell you that when you bought it.

Middle of the list at number 3 was the selling of PPI as acompulsory product

PPI never has been compulsory and neither has taking out any other kind of insurance product when you have bought a loan, credit card, store card, opened a catalogue account and so on. After January 2005, if you were sold PPI on the premise it was 'strongly recommended' or advised, do you have the reasons why in writing? If not, this is mis-selling.

Nearly at the top at number 2 was the'not fit for your circumstances'

Until as recently as 2009, some PPI policies were sold as single premium. In other words, you paid upfront for something that was useless. Not only that, it did not cover the term of your loan. This is defined as not being fit for your circumstances, and it happened frequently.

Topping the chart at number 1 is not knowing you had PPI in the first place!

Can you believe that people were duped in 'buying' PPI by a single, tiny pre-ticked box at the end of the application form? You were and you were not aware of it.

Claim back YOUR PPI compensation with Payment Protection Scotland - call us to find out more!

Unsure if You Have a PPI Compensation Claim?

Use our checklist to see if you have a claim

Fact Check - PPI was mis-sold alongside loans, mortgages, credit cards, store cards, catalogue accounts and more

The idea behind PPI is simple: in the event you cannot make repayments on your loan or other product it was linked to, the policy would make the payments for you.

It sounds like agood financial principle, taking care of finances and anticipating what could happen in the future and being prepared.

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Fact Check - You may have knowingly purchased PPI because the bank told you what a great del/product it was

That is what many customers of PPI thought and so, with every faith in their bank, they purchased the product.

Just because youbought the product knowingly- as opposed to hundreds of customers we have helped here at Payment Protection Scotland who were not aware they had the product - does not mean you are NOT entitled to compensation. Quite the opposite, in fact.

Fact Check - You were NOT told everything about PPI

Whilst you were given information on the policy and its supposed benefits, the bank representative did not tell you everything…

  • For example, were you aware thatany existing medical condition you had at the time was not covered? While you thought that you were covered by PPI if you were unable to work as a result of that illness or condition, you were not.
  • Did you also know thatsome medical conditions and illnesses were not covered at all? If you were incapacitated, no matter for how long, by a back problem the policy was unlikely to have paid out. Likewise, mental health conditions were also not really covered…
  • Were you toldhow much commission the broker was receiving for arranging PPI? If you had been, you may have asked more questions about how much it was costing you and why the broker was receiving up to 67% of the cost of the loan in commission.

Fact Check - PPI was expensive for the cover it offered

Some people are not convinced they were mis-sold PPI, but we think differently. It is a defective product that offered only a small number of customers any kind of cover.

If you had known that this insurance product only paid out in 15% of claims, would you have bought it knowing the odds of successfully 'using' the policy was so very low?

Fact Check - Payment Protection Scotland are a trusted and reputable company

If you think you have PPI, or are unsure you even have a claim for PPI compensation, live or work in Scotland then turn to one of the leading claims management company specialising in PPI claims for help. Call us!

PPI: What Has Changed and What will 2018 Bring?

Payment protection insurance (PPI) was mis sold to thousands of customers across the UK. But what, if anything, has anything changed?

2018

Advised Sales

Customers are often advised by bank representatives and financial advisers to buy a certain product, including insurances. What happened with PPI was a confusion between what was an actual advised sale based on facts about the customer and a member of staff trying to hit their PPI sales target

What's changed?

If you are sold any product, including PPI, then you must be given a written statement, outlining the reasons why the policy is the right one for you.

Pay out rates

Another issue with PPI that many customers were unaware of was the number of successful claims made against these policies. Car insurance, for example, has a pay-out rate of around 80% but PPI had a pay-out rate of only 15%.

What's changed?

Banks and building societies, if they still offer PPI for sale, must publish their pay out rates on an annual basis and be part of the information that banks give customers so that they can make an informed decision.

Given a choice

Many banks and lenders gave the impression to customers that the purchase of PPI alongside their loan or other product was compulsory and that their own brand of PPI was the only one available for purchase. Just like any other insurance, you have the right to shop around and get a better deal. Most customers, if they had done this, would have found a much better deal from other providers.

What's changed?

Customers are to be informed that they can shop around for PPI insurance, as some other types of insurances may be better for them. Income protection insurances are considered better value than PPI.

Bombarding customers

Many customers buy loans and other products based on emotion. For example, buying a re-mortgage product to expand their home or release capital is an emotional one. PPI, along with many other products were sold to customers at the same time, with many believing that they stood a better chance of gaining the money they needed by buying these products.

What's changed?

Customers are not to be bombarded at the time they buy the loan or mortgage etc. with any additional products being offered to customers some days later, NOT at the time. There must be a gap of 7 to 14 days between the purchase of the main loan and an offer of any other product.

Update: the PPI deadline of August 2019 is now confirmed. The latest legal challenge to it has fallen on deaf judicial ears. NOW is the time to make a claim so start 2018 as you mean to go on: with more money in your pocket!

 

What Was Wrong with PPI?

Payment protection insurance (PPI) - a phrase that has strikes fear into the heart of the UK banking industry - is a now infamous policy at the root of an embarrassing mis-selling scandal. An embarrassment for the banks and regulatory authorities, there is now millions of pounds in compensation being paid to customers every month.

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Selling these policies to customers brought them handsome profits. The representatives who sold them reaped huge commissions.

But how did it all go so wrong and how come we fell out of love with a policy that sounds a good idea, on paper at least?

What does PPI promise to do?

In a nutshell, consumers like you, bought the policy thinking that in the event of you being unable to make repayments on loans and other products, the policy would 'kick in' and make the repayments for you.

Sounds a great idea but the problem was two pronged: the way it was sold and the fact that the policyis not quite what you think it is…

I.  Mis-selling

The fact that PPI was mis-sold to thousands of customers is something that is now causing the banks in the UK, including Scotland, a major financial headache. Their profits are being hit hard as they compensate customers for the mis-selling of PPI. In September 2017, the banks collectively compensated customers just under £300 million.

There are many mis-selling reasons, ranging from telling or implying to customers that the purchase of PPI was compulsory (when it isn't) to the insistence that customers buy the banks' own PPI policy, rather than letting customers shop around for a better deal.

It is this mis-selling that forms the crux of the whole mis-selling saga. It means customers are now claiming compensation, providing they can prove they were mis-sold the policy.

But rather than letting this put you off making a claim, bear in mind that the majority of PPI claims are successful. Even if the bank says no, you can take your claim further. The Financial Services Ombudsman is still finding in favour of the customer rather than the banks, even after all these years.

II.  Not quite what you think it is

Many customers also invested in a policy that was not quite what they thought it was.

For example, many customers were under the impression that it would cover their repayments but, if they had made a claim, it would have only paid the minimum charge on a credit account, for example.

This means that your debt would reduce far slower and, not only this many people did not realise that it only covered payments for a short period of time.

There was also a lot of commission paid to the broker - you can claim that money back too - and the terms and conditions were so narrow it is hard to see who would have been covered by them. But the bank didn't tell you that…

Have a claim for PPI? Could Payment Protection Scotland help? We can help anyone who has a claim for PPI - why not contact us to find out more?

Increase Your Chances of PPI Success

I am considering making a claim for PPI compensation and want to know what hints and tips there are for maximising my chances of a successful claim. What do you recommend I do and don't do?

A great question! Let's take a look…

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Is your claim genuine?

In the main, disingenuous claims are not a big a problem as they once were but, to maximise the chances of success you need to be sure that;

  • You have a PPI policy on the account
  • You were mis-sold it

Were you mis-sold it?

There are many reasons why you may have been mis-sold PPI. For example;

  • You felt you were given the impression it was compulsory or part of buying the loan or mortgage etc.
  • You were under 18 or older than 65 when it was sold to you
  • You were unemployed
  • You worked part-time (less than 16 hours although this will vary depending on the terms and conditions)
  • You were zero hours or temporary contract
  • You were self-employed
  • You had a pre-existing medical condition that you believed was covered under the PPI policy
  • You had no idea you had PPI until you checked the account!

This is not an exhaustive list but is a good place to start.

How much information do you have?

Let's start with this piece of information: just because you don't have the original paperwork does not mean you cannot make a claim. Banks and lenders do have digital copies that reach back quite far.

The Financial Conduct Authority (FCA) has also said that banks and lenders DO know who they sold PPI too.

However, if you can find policy numbers, know who your loan was with, who credit was with etc. then this is very helpful to your case. It is possible to find out by writing to banks and lenders you know you borrowed money from.

You do need to make a decision

You may have noticed adverts on TV as well as in newspapers and poster campaigns from the FCA about making a decision about whether to claim or not.

Now that we are in 2018, the decision has taken on yet more urgency. This is because the PPI deadline has been set for 29 August 2019.

You have until 11.59pm on this day to submit your claim for PPI compensation. If you don't, your claim will no longer be eligible for compensation and you could miss out on thousands of pounds of YOUR money.

The time has come to act, and we are the people to help. So, why not give us a call to see if you are owed compensation?

Mis-sold PPI – another landslide victory for the consumer

Millions of customers have been mis-sold PPI by major UK banks and other high street lenders - and you are probably on of them if you had a loan, credit card, store card, catalogue account, mortgage or another 'loan' product from the mid-1990s onwards.

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Payment Protection Insurance (PPI) is a niche product and was meant to cover people and their ability to make repayment on the loan should they be unable to do so because they lost their jobs or were too ill to work.

But, it was a product that mis-sold on a huge scale. The terms and conditions of PPI are narrow and limited, but this didn't stop the banks and financial companies from selling it their customers, even when they knew the customer would not be covered by the policy.

The case of Mr & Mrs H.* and their successful PPI claim

(*names have been changed)

This example looks at the case of a married couple, Mr & Mrs H. They had taken their financial problems to a debt management company. They had taken out a loan and credit card but due to a variety of circumstances, they found meeting the repayments difficult.

As a result, they took out consolidation loans etc. but this simply added to the financial burden they were facing. They sought the help of a debt management plan.

As part of the plan, they were asked extensive questions regarding their loans etc. and whether they had taken out any form of PPI on the loans. They were confident they had not, stating they had simply signed the forms sent to them.

As part of this debt management plan, Mr & Mrs H. had annual financial reviews and it was during one of these annual reviews with the debt management company that they gave authorisation for the firm to access their records and accounts with various banks to ascertain for certain if they had - or had not - taken out PPI policies on any of their loans.

Within weeks, it had been discovered that Mr & Mrs H. had actually been sold PPI on a variety of their loan products. Some of their loans and credit cards were over 10 years old and so it is difficult to remember whether they had been sold the policies properly or not (don't forget, you have to prove as part of your claim that you were mis-sold the PPI policy).

It transpired that the policies were of no benefit to Mr & Mrs H. If they had been asked the questions as part of the sale process, they would not have taken out PPI as it was of no benefit to either of them; effectively, their income would not have been covered.

Compensation Paid

Bearing in mind they had several loans and credit card accounts, at the time of writing Mr & Mrs H. have received £25,000 back in PPI compensation monies. They can still expect more as they have two more PPI claims currently being processed.

You too, could be in this position of waiting for a PPI compensation cheque to clear. And with our help, that day could come sooner than you think!

Merry Christmas and a Happy New Year

Merry Christmas and a Happy New Year from everyone at Payment Protection Scotland.

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PPI Compensation – Is it Worth Making a Fuss?

It is a financial product that no-one can fail to have heard of. PPI is infamous. It was mis-sold over many years and to thousands of customers.

 Fuss

Now, the banks are paying back this money and it is costing them billions. Customers have until 29th August 2019 if they want to get their money back. But is it worth making a fuss about?

Dishonest Practice

Payment protection insurance (PPI) is a by-word for dishonest banking practice and selling that has, over the years, cost thousands of people a lot of money.

Many people will have been paying an extra 20 to 30% more on their loan with the addition of PPI - and yet, the policy for many of them were effectively useless.

Commission Payments

When a broker sold a PPI product, they were paid commission. This is not uncommon practice, but some commission payments were a lot higher and, the argument goes, if you had known how much commission you were paying, you probably would have queried the cost of the policy.

Was PPI any good?

This is a difficult question to answer because like all insurance products, some suit some people better than others.

Payment protection insurance is narrow in who it covered and what it covered. For example, anyone without income protection policies or a decent benefits package at work, then PPI could have been a decent insurance policy to have.

But if you had pre-existing medical conditions, it was of no use. If you were older than 65, it didn't cover you. And there were other exclusions too, but you probably weren't told about them…

The problem is…?

… mis-selling.

Banks made huge profits from the sale of every policy they sold. Add to this the commission payments that representatives of the banks took home and you can soon see the crisis lurking in the wings.

  • Many banks also gave their sales representativesmonthly sales targets of PPIto meet and, if they did hit these targets or surpass them, the bonus they received was very handsome indeed.
  • The scale of the problem is because the customer trusted their bank to do the right thing by them, but your band had one thing at heart: making money.

PPI Deadline

You have until August 2019 to claim your money back. But we are advising our customers not to wait and to make 2018 the year the year they enjoy a welcome financial windfall.

If you would like help or would like to know more about our service, you can call us today and chat with one of our friendly advisers… we do have your interests at heart!