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Should I Ignore Texts I Receive About PPI Claims?

Everyone with a mobile phone in the UK will have received at least one text relating to PPI compensation - even the former head of the Financial Conduct Authority, Martin Wheatley, received them!

They are the texts from an unknown company, informing you that there is a cheque or a pot of cash with your name on it, because everybody - or so they say! - is entitled to claim PPI compensation.

Or, they will text telling you with an authoritative tone that 'we know now how much PPI compensation you are owed'. They will then invite you to call and they can transfer the monies to you.

But it rarely works this way. These texts are from companies touting for business. They hook you by promising you a large sum of money, along with the fact that you don't have to do anything. Who wouldn't love easy money?

Following up these texts can also land you with a big bill, for both their 'services' as well as returning premium rate calls via your mobile.

What Should I Do?

Ignore them. And this is sound advice based on facts;

  • No one knows how much compensation you are entitled to -until they look in to your case
  • No one knows if you have PPI policies -until they objectively assess your case
  • Financial and personal information should not be sold -thus, your bank or lender will not tell them if you have PPI, how much compensation you are owed unless you give a third party or claim management company the authority to act on your behalf.

Finding a Reputable Claim Management Company

Unfortunately, as in all professions, some companies act ethically and morally better than others. Some companies just want to take your money and do nothing in return; it is these companies that give the profession of claim management a bad name.

However, for some people, it makes sense to use a reputable claim management company. This could be because of lack of time, or confidence or just the feeling that they would like someone else to do it.

So, how do you find the best claim management company;

  • Look for an assessment process -any company that promises or guarantees success may not have your best interests at heart. Look for a company that starts the claiming process by assessing whether you have PPI and, if you do, how much compensation is due to you.
  • A high success rate -you would think that this is obvious but the real reason to look at this is an indication of how well a company assesses claims. If they don't advertise their success rate on claims, ask them what it is.
  • No win, no fee -which means exactly what it says. But check what the fees are before you sign up.

Payment Protection Scotland can help - why not call us?

PPI Deadline – What Does the Marketing Campaign Need to Look Like?

On October 11th 2016, the consultation period on whether or not to introduce a PPI deadline in June 2019 will come to an end.

The consultation is being led by the Financial Conduct Authority. They are the regulatory body that keeps a close eye on banks and lenders, and how they operate etc. They came into being as a result of the PPI mis-selling saga which, some say, would have been avoided if there was a banking regulator who could hold banks and lenders to account.

A long, long history

The issue of PPI, the way it was being sold and how expensive it was, was raised back in the mid-1990s. It wasn't until 2011 and after several legal wrangles and reviews that the banks lost their fight NOT to compensate their customers for mis-sold PPI.

Since 2011, banks and lenders have compensated customers to the tune of £24 billion, a figure that is set to carry on rising until the proposed June 2019 PPI deadline rolls around.

Not just a deadline

The banks want a deadline that is much sooner than June 2019 - they were hoping for summer 2018 but the FCA say they have many concerns. They want the PPI saga to be brought to an orderly conclusion but also want everyone who is entitled to claim PPI compensation to do so.

You would think that everyone would be claiming their money back but, figures show that just under half of those people with PPI policies have made a claim for compensation.

So why haven't the other people claimed their money back?

  • Apathy

Apathy occurs when something looks too good to be true or people assuming that good things only happen to others, or a combination of such attitudes.

Don't forget that the PPI compensation process has been rumbling on for eight years or more, so people assume that it affects everyone but themselves.

  • Time

The fact that the PPI saga has been rumbling on for so long also contributes to people not really understanding that it affects them.

  • Unaware

Some of the 60% of customers affected by PPI who haven't made a claim could actually be completely unaware that they have a claim because they don't know they have a PPI policy attached to their loan product and so on. Any marketing campaign will need to be robust in order to convince these people to take a second look.

Payment Protection Scotland can perform a no obligation PPI check, helping you to understand if you have a PPI policy and, if you have a claim for compensation as a result of mis-selling. Find out more right now by calling us.

Were all PPI Policies Mis-sold?

The answer to this question and more, including what you need to do before June 2019.

Of the 53 million PPI policies sold in the UK, how many were mis-sold?

There are no hard and fast figures relating to this but, most experts agree that of these millions of policies sold to thousands of customers, the vast majority were mis-sold.

What does mis-sold mean?

Mis-sold means that the bank or lender representative sold you a policy knowing that your circumstances meant you were unlikely to a) be able to make a claim or b) be covered by the policy.

For example, selling a PPI policy to someone over the age of 65 years constitutes mis-selling as the policy does not cover those over this age. Banks and lenders knew this, but sold it to people 65 years + regardless.

What other criticisms are there of PPI?

There were a few issues raised back in the mid-1990s;

  • Expensive - one gripe which came to light early on was the cost of the policy when compared to the sparse cover that it offered. Customers would have been better shopping around for a cheaper policy with better cover.
  • Claiming process - if people did make a claim, not only were they unlikely to be successful, the claiming process against the policy was overly long and overly complex. People who were successful in claiming on their policy waited months for a pay-out.
  • Sold as a package - many people felt compelled to buy PPI as they assumed it was part and parcel of a great deal they were getting from the bank. If they refused the policy, some people felt their application for credit was looked on less favourably.

Has much changed since the PPI scandal broke?

There have changes in regulations, as well a practice and a significant shift in attitude; whether this lasts remains to be seen.

Banks were initially reluctant to take responsibility for the wholescale mis-selling of PPI but over the years, they have come to realise how bad this scandal has made them look. They are now actively seeking ways of improving customer trust, something that has been severely dented by the scandal.

The industry regulator has also been 'beefed up'. The Financial Conduct Authority (FCA) know has more regulatory powers than its predecessor, the Financial Services Authority. Initially, the FCA took a hard line against banks and lenders but, with a new head in place, this attitude is beginning to soften.

The way in which products are sold has also changed but consumers are also now more aware of how and when banks can sell them policies in addition to the main financial product they have bought.

What do I need to do before June 2019?

Make your claim for PPI compensation because after this date, it could all be too late…

The June 2019 PPI Deadline – Will it Happen?

When the Financial Conduct Authority (FCA) announced they were consulting the banks, lenders and consumer groups on imposing a PPI deadline, there were arguments and counter-arguments for and against the move.

With the consultation period expected to end on October 11th this year, many people are left wondering, will the deadline be imposed. And, if it is, what will the next two years look like?

Why impose a deadline?

Up until this recent announcement by the FCA, there had been widespread derision about the idea of imposing a PPI deadline. The banks, as you would expect, had been lobbying for a PPI deadline for some time.

Many consumer groups were - and still are - against a PPI deadline and underlying their argument, is one key fact, as they see it;

The poor PPI compensation claiming process that banks and lenders present to the customer

Some consumer groups, such as 'Which?' say that the PPI compensation process direct from banks, lenders and financial institutions are not clear. The process is also long and cumbersome, especially when, the consumer groups say, that the banks already know who they owe money too.

Apathy

In most cases, if someone has a PPI policy, they will be due compensation. Although there are millions of PPI policies sold - 53 million approximately - not everyone is due compensation; that said, the vast majority of these 53 million policies have been mis-sold to people.

However, the PPI mis-selling saga had been running for some time now and, say the banks and lenders, there is a state of apathy amongst the British public.

It is easy to see why. With the story of thousands of people claiming their money back almost looking too good to be true, many people assume that it is. After all, don't good luck stories happen to other people…?

Unaware

Although the FCA say there is going to be a marketing campaign to ensure that everyone knows about the deadline and how to claim their money back, many people are simply unaware that they have a claim.

This is because PPI was added to their accounts after they had taken out the credit product. This also happened with online credit card applications in which the 'opt in to PPI' box was already ticked. If you failed to read through the reams of small print, you were unlikely to come across it.

Will the PPI deadline of June 2019 happen?

There seems to be agreement that a PPI deadline will now happen and the FCA has muted the idea of June 2019. The banks want to impose a shorter deadline but consumer groups say that if a deadline must be imposed, the further away it is, the better.

But don't wait to make your claim for PPI compensation - call Payment Protection Scotland today.

Is a PPI Deadline Needed?

The proposal of a June 2019 PPI deadline by the Financial Conduct Authority (FCA) has led to arguments and counter-arguments relating to whether this should happen in the first place. But who is saying what? And what is the likely outcome?

I don't think the banks have any rights to be calling the shots when it comes to how, when and why people claim PPI compensation…

This is the tough line that some consumer groups are taking, in defence of the man and woman on the street. They feel that the banks and lenders knowingly and willingly took advantage of their loyal customers, in order to create vast profits. Sales representatives were given huge financial incentives to meet ambitious sales targets and thus, the banks, they say, are not in a position to suggest, support or advocate a PPI deadline.

June 2019 is ages away. Why not do it sooner?

According to some sources, under half of the people who have a claim for PPI compensation have made a claim, around 40% approximately. That means there is still a large chunk of the adult population across the country yet to make a claim.

The problem is twofold, or so experts tell us;

  • Apathy- frankly, the PPI saga has been rumbling on for some time now and thus, many people are simply blind to the whole thing. There is also the sense that it is too good to be true, hence many people assume that a PPI windfall is something that happens to everyone else but themselves.
  • Not knowing- frankly, many people are unaware that they have a claim. For example, you may think that you don't have PPI as you would have remembered buying an insurance policy… or would you? What happens if we told you that you had been paying it all these years on the credit card that you have?

So, there is going to be a big push on PPI claim? Won't that make the situation worse?

The FCA are aware of the need for a marketing campaign that reaches all sections of society, from the lady living in sheltered accommodation to the busy working people in the city.

PPI is not a problem that affected a certain group but how some people respond to things will change from one person to another, depending on their age, gender and so on.

The reason why the FCA are suggesting June 2019 is so that they can get their marketing campaign organised. In other words, they need to do some research as to how they can reach everyone, ensuring they have the information they need to make a claim for PPI compensation before the deadline.

Why wait? Call Payment Protection Scotland today.

The PPI Saga – Not Just Hitting the Banks Hard

Payment protection insurance (PPI) is a saga that has been long running. Just when we thought it was drawing to a close or about to sink without trace, something would happen to place it firmly back at the top of the agenda.

With banks announcing yet more money into their compensation funds, the discussion of a PPI deadline of June 2019 has raised yet more interest in PPI.

Whilst banks and lenders are being hit hard, there is also another organisation that is bearing the brunt of the PPI mis-selling scandal - the Financial Ombudsman Service (FOS).

Who are FOS?

FOS in their own words are "the UK's official expert in sorting out problems with banks, insurance, PPI, loans, mortgages, pensions and other money and financial complaints".

This means that if you think a bank has treated you unfairly or mis-sold you a financial product, then FOS can help you out. You will first need to have tried to sort it out with the bank. Some customers still feel that the bank has treated them poorly or that they feel a product was mis-sold to them.

FOS deal with all kinds of financial products sold by UK banks and lenders. They produce annual reports, as well as various statements throughout the year.

Of all the financial products they deal with, they tell us that PPI is the most complained about financial product of all time.

Eye-watering figures

FOS recently released a statement that said they were dealing with or accepting 4,000 PPI complaintseach month.

Don't forget that as FOS deal with PPI complaints, they are also dealing with other complaints regarding other financial products. Apparently, the second most-complained about financial product is packaged current accounts.

PPI complaints represents 188,712 cases that they dealt with during the financial year 2015 - 2016. This represents more than half of its work load!

FOS has had to increase its workforce considerably, taking on some people specifically for dealing with PPI complaints.

More complex

FOS are also telling us that the PPI cases that people are bringing to the are more complex. This means they are spending more time and resources looking into people's complaints but are still finding in the case of the consumer more often than not.

Does your case need FOS?

FOS will only take referrals if you have tried to claim PPI compensation from your bank and the bank has refused your claim. You need to be clear about why you think you are owed PPI compensation and this is something that PPI Scotland can help you with.

It may be that you don't need the extra impact that FOS will bring to your case, especially if you tell your bank clearly why you are entitled to your money back. Call us to find out more!

 

PPI Compensation Claims – how many more PPI claims will the banks possibly face?

With a possibility of a PPI June 2019 deadline looming large, the writing may finally be on the wall for PPI compensation claims. However, we will be working hard to make sure that everyone who has a claim, has the information and help they need to make one… and well before the deadline!

But, you probably still have some searching questions.

Surely, there cannot be many more PPI compensation claims to be made?

You would think that after all these years, and the relentless marketing of some claim management companies, that there can be no one left in the country who has not made a claim for PPI compensation.

According to the Professional Financial Claims Association, their calculations show that only half of the sums paid out represent refunded payments. In the total bill, a portion is the actual compensation, as well as 8% interest and administration fees for processing the claim.

MoneySavingExpert.com say that the Financial Ombudsman Service is still upholding 70% of complaints relating to PPI in favour of the customer. This means that banks are still rejecting claims. Thus, say the experts, this all adds up to banks facing more claims in the coming years and months.

So, it's just PPI compensation from now on? No more twists?

There could be another lurking in the wings and that is the fallout from the Plevin Vs. Paragon case. Susan Plevin argued that if she had known 72% of the £5,780 premium she was paying for the PPI policy was commission, she would have questioned the cost of the policy. She argued her case under the 1974 Consumer Credit Act that by not disclosing commission, it was an unfair sale.

The court agreed. This may mean customers could be entitled to more compensation if the court agrees that other customers by not having commission disclose to them, means that their sales were also unfairly conducted.

How much can I claim in PPI compensation?

The average is about £2,000 although there is one example of an £82,000 PPI compensation payment and another of £65,000. It depends on how many PPI policies you have, how long you had them and the way in which PPI premiums were calculated.

Lloyds Banking Group say they are dealing with less claims each week. This must mean that PPI claims are coming to a close?

Lloyds Banking Group are the biggest banking group in the UK, therefore they have the biggest compensation bill. They are receiving less claims per week, but they are still processing a staggering 6,700 cases a week.

With the imposition of a PPI deadline, this could sky-rocket once again.

Can I make a claim now?

Yes, you can and you can ask Payment Protection Scotland to help you. Call us now!

Will the PPI Deadline Happen?

As we enter into September, the PPI landscape looks set to change. We have been at various points similar to this on previous occasions and just when we think it will go one way, the PPI saga swings back round again.

In a matter of day, the Financial Conduct Authority (FCA) is set to announce whether the proposed June 2019 PPI deadline will hold firm or not. At this stage of the game, it looks like the deadline will be coming in to play, along with a far-reaching marketing and promotional campaign.

Is a deadline for PPI compensation claims needed?

The idea of a deadline has been muted on many previous occasions. Previously, the FCA have always said no to the banks. Some smaller banks and lenders have also not been keen on a deadline as they said at the time, they would not be able to cope with a large influx of PPI compensation claims.

The FCA is now taking a more conciliatory tone, wanting to draw what they term as an 'orderly conclusion' to the PPI saga. They want banks to be able to draw a line under the sorry episode that saw customer confidence and trust severely dented.

What do consumer groups say?

Understandably, consumer groups are not happy. They think that the customer could miss out, and that once again, the banks are back in the driving seat.

They also point out that by examining the compensation bill, it is 'easy' to see what only half the customers with a compensation claim for mis-sold PPI have made one. This means that there could be a huge influx of compensation claims yet to be made - and they could all be squashed into a two-year period!

But the FCA said they will pay for a bells-and-whistle marketing campaign. This should appease everyone, shouldn't it?

It depends how well the marketing campaign is created and whether it will reach all the people that need to get the information.

'Which?' also points out that with some banks and lenders, the PPI compensation process is unnecessarily long, complex and cumbersome, a bit like the process of claiming against a PPI policy used to be.

Other groups say that the banks and lenders know exactly who has PPI and that they should simply compensate them without delay or argument.

The FCA say that they have pushed the deadline back from summer 2018 to June 2019 so that they can get this marketing campaign right.

The banks and lenders want the deadline to be sooner. They are unlikely to get their way but don't hesitate any longer. If you think you have a claim for PPI compensation, call Payment Protection Scotland now!

Claiming PPI compensation – what you need to know!

Claiming compensation for mis-sold payment protection insurance (PPI) should not be onerous or difficult but, some consumer organisations say that some vulnerable customers are still finding it difficult to get their money back.

With an impeding June 2019 deadline, a public awareness campaign should make this easier. But why wait for the deadline? Start your PPI compensation claim today.

Step 1 - Checking your accounts

Firstly, you need to ensure you are checking the right accounts. With PPI, many people assume it is only bank accounts - they certainly have the biggest PPI compensation bills - but it affects any account in which you borrowed money or arranged credit.

Therefore, check: store cards, finance agreements with high street stores (Land of Leather was one of the first to be fined for mis-selling PPI), car finance as well as loans, credit cards, mortgages etc.

Step 2 - What are you looking for?

PPI was not always referred to a PPI. Companies, lenders and banks sometimes called their insurance by different names.

If you are unsure, check what the insurance product offers. If it promises to make repayments on the loan should you be unable to work because you are too ill or because you lost your job, then this is a PPI-type policy.

PPI is also debt-specific. This means that it is linked to that one debt. This is why some people have more than one PPI policy - you could have one on a credit card, another on a loan and so on. Check everything you have and check it carefully.

Step 3 - Tell us why you think it was mis-sold to you

As part of your compensation claim, you will need to tell the bank why the PPI policy was mis-sold to you;

  • You may not have realised you had it until now
  • You were retired when it was old to you
  • You were unemployed at the time it was sold to you
  • You have a pre-existing medical condition which you thought was covered by the policy
  • You were not made aware of the terms and conditions of the policy - if you had you would not have bought it

There are other reasons so so why not tell us your PPI story?

Step 4 - Tell the bank

Some banks and lenders have online forms that can be completed and submitted. Others want to write in with policy numbers and so on. This can be confusing as well as off-putting for some people.

This is why we offer a professional claim management service, specialising in PPI compensation claims. Call us today.

What is PPI?

With the announcement of a PPI deadline expected any day, the time has come to remind customers what the policy is and what the mis-selling saga is all about.

It is also an opportune time to encourage anyone who has yet to make a claim for mis-sold payment protection insurance (PPI) to step forward and do so because the clock could be ticking on making a claim.

What is PPI?

PPI is an insurance product designed to cover loan repayments in the event you, the policyholder, became too ill to work or lost your job.

There have been around 50 million policies sold since 1990 but, in the late 90s, it became clear that there were problems with PPI and the way it was sold.

Criticisms of PPI

  • The cost of PPI on a loan could add as much as 20%. In some cases, the addition of PPI could double the cost of the loan
  • It was ineffective too, structured in a way that limited the chances of people being able to make a successful claim; only 15% of claims made on a PPI policy were successful
  • Many people were told that PPI was essential or compulsory when this is not the case and never has been
  • Claiming was a lengthy process with long, complicated forms and unacceptable delays on pay out (if the claim was successful which it was unlikely to be)

Mis-selling of PPI

It was mis-sold over and over again. The scale of the mis-selling is hard to comprehend. You could be due all of your money back but first, you would need to be clear on why you were mis-sold the policy;

  • You were not told you were having PPI added to your loan etc.- many people are shocked to realise that they had PPI in the first place, as they cannot remember agreeing to it. This is a concern that many consumer organisations share as these customers will be unaware they have money to claim back before the June 2019 deadline.
  • You were retired or self-employed- if you were retired or self-employed the likelihood of you being able to make a successful claim against the policy was low to non-existent.
  • You are unaware of the significant exclusions under the policy- from certain medical conditions to any medical conditions you currently have, there are all kinds of exclusions of which you need to be aware. You may have thought that you were covered but were not.
  • The impression you had to buy it- many people felt they were told that they had to buy PPI in order for their loan application etc. to be accepted. This was not the case.

If you think you have PPI compensation claim, come to the experts for advice.