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Making A Claim For PPI Compensation – How To Do It

When something has been around as long as the mis-selling of payment protection insurance (PPI) scandal, it is a distinct possibility that people become complacent and indifferent.

Justice

So, as we near the end of 2018 and look ahead to the New Year, wouldn't it be a lovely start to the next year knowing that there is a potential windfall of cash making its way to you? But, you need to make it happen before 29th August 2019 because that is the PPI deadline day!

This is how you make your claim…

#1 Get your facts in order

This means taking a look at all the original documentation, if you have it, for all accounts in which you borrowed money. From credit cards to personal or unsecured loans, to mortgages in some cases and car finance too. Take a look at catalogues accounts and store cards too - you will be surprised at who added PPI to their customers' s accounts.

If you don't have paper copies, look online at your accounts if that is a possibility. If not, take a look at the next mini-step.

#1a Short on paperwork? We have the answer…

If you cannot find the paperwork, contact your bank or lender and ask them for a copy. They have been told NOT to charge 'search fee's and, more importantly, don't take no for an answer.

If they say that the paperwork is long gone, suggest that they look at their computer network and servers as banks and lenders keep information for a long time.

#2 Detected PPI? Make a claim

In order to claim your money back, you need to tell the bank or lender why you believe you were mis-sold the product in the first place.

It may be for example, that it was added without your consent, it was not suitable, the policy was not fully discussed with you because, if it had been, you would not have bought it and so on.

#3 Get help if you need it

If you are unsure about any aspect of making a claim for mis-sold PPI, then you need to seek help from the right people.

PPI Scotland is a reputable and trusted claim management company that has worked with thousands of customers to make successful claims for compensation. We can, for a fee, help you claim your money back.

#4 Find out more - call Payment Protection Scotland

There is no obligation when you call us and we take on all cases on a no win, no fee basis so you only pay us if we are successful!

True or False - Test your PPI Knowledge!

The payment protection insurance (PPI) scandal is coming to an end. With less than nine months to go until the 2019 PPI deadline, now is the time to test your knowledge of PPI and make a claim.

Knowledge

If you have no paperwork or evidence of PPI, you do not have a claim - true or false?

This could essentially be a difficult question to answer. However, over the years that the PPI scandal has rumbled on, the facts have become a little clearer.

In fact, the Financial Conduct Authority agreed some time ago that this 'do I, don't I?' about whether to make a claim or not needed to be dealt with. The truth is that many people may not have the evidence they think they need to prove they had a PPI policy -but the banks do.

This is why banks were told to write to customers to tell them they had PPI and may be entitled to make a claim.

Even if you are unsure about whether you had a PPI policy or not, there is no harm in asking your bank or lender to check your account records on your behalf. If they say you did have PPI, you can then go ahead and lodge a complaint asking for compensation if you believed it was mis-sold to you.

PPI compensation claims are 'automatic' - true or false?

Again, with stories of thousands of people claiming back thousands of pounds in compensation - collectively, the banks and lenders have paid back billions in compensation - you could be forgiven for thinking that compensation should be automatic.

It is true that PPI was mis-sold on a scale that could only be described as gargantuan. However, every case is different and must be treated as such. There are many reasons why PPI was mis-sold and the reason why it was deemed as mis-sold to you, will and can vary from the reason why it was mis-sold to someone else.

This means, therefore, that not only in compensation NOT automatic but the amount you receive in compensation is also not automatic nor is it the same. There are so many variable factors in from one case to another that it is important that each case is assessed on its own merits.

PPI claims are drawing to a close - true or false?

Just when we think that the fire is being extinguished beneath the boiling vat of PPI claims, something comes along to stoke the flames.

But the 2019 PPI deadline has been confirmed. You have until 11.59pm on 29th August 2019 to lodge your complaint. Why wait? Act now!

Do You Know How Much PPI Compensation Could Be Due To You?

In all the information circulating about payment protection insurance (PPI), there is not much on how much compensation people could actually be claiming back. In this article, we look at what is taken into account, the 'official' process of what compensating someone actually is and where the average payment figure comes from.

Poundcoins

£2,750 - is this the magic figure?

When the PPI mis-selling scandal broke into the mainstream news, there were all manner of experts and people who professed to know the depth and scale of the problem was.

The truth is, the scale of the problem did not become apparent for some time. When it did, it was shocking.

In essence, the figure of the average compensation for mis-sold PPI of £2,750 is obtained when the value of the policies sold is divided by the number of customers who bought a policy, giving a compensation guide figure of £2,750.

However, in many cases the actual compensating people received was far less and in other cases, far more.

What factors influence the compensation amount paid?

There are many influencing factors including:

  • The length of time you have been paying premiums on a PPI policy- the longer you have had the policy, the more you will have paid, the more you will be entitled back.
  • The number of PPI policies you have- PPI was applied to credit cards, bank loans, in some cases mortgages and so on and thus, it may be possible you were paying into more than one policy at a time. Again, this will increase the compensation you could receive.
  • The level of premium varies too- some policies were paid for in one lump sum, others with a premium every month. In some cases, the premium was calculated as a percentage of the amount left owing. This was common for credit card accounts thus your PPI compensation could be significant.
  • Fees and costs- in some cases, customers were also charged arrangement fees or faced costs when their account was in arrears, sometimes as a direct result of having PPI added to them. These should also be reimbursed.
  • Commission- the FCA decided in 2017 after a recent court case that if you paid commission which was more than half the cost of the loan and you were not told about it, you can claim this figure back too.

What's the official line on compensation payments?

There is a phrase that is used when someone is receiving compensation as a result of a financial product being mis-sold to them. The same is true when it comes to PPI compensation. It says that customers should be put back to the financial position they would have been in had the policy or product not been sold to them.

In other words, you should be no worse off!

Do you have a claim for PPI compensation? Why not find out today by calling Payment Protection Scotland?

The PPI Saga - Has Anything Really Changed?

When the payment protection insurance (PPI) scandal broke, not many people realised how long the saga would last. With the 2019 deadline less than 12 months away, we take a look at what has changed in the wake of the biggest scandal to have hit the British banking industry.

Change

What is PPI?

PPI is an insurance policy that should make repayments on loans and so on, should the premium holder be unable to do so for a variety of reasons. On paper, it sounded a great idea and a side move to protect your finances.

In reality, however, the way the policy was sold to customers meant that people either knowingly - or not as the case may be - bought into policy that was effectively useless to them.

As a result, there are many changes that have been made:

Single policy PPI is banned

Single policy PPI was when the customer paid for the policy upfront and in one lump sum. They were not overly common but there were a significant proportion of customers who had a single policy PPI.

What this meant in practice was that there was a significant lump sum added to the cost of the loan, on top of which the customer would also pay interest. What started as an affordable loan, quickly became a financial millstone around the neck for many people.

When customers did complain or cancel their policy, they were told they were not entitled to a refund of any monies etc. This can longer happen.

7-day breathing space

Many people were sold the PPI at the time they took out a loan or other credit product. It has been recognised that for many people, applying for a loan, credit card and so on is an emotional decision. They invest a lot of emotional energy into needing the loan to be able to purchase something that is of importance to them.

This can make people more susceptible to suggestion and thus when the representative suggested what a great idea it would be to protect your loan etc. people bought into the policy.

Some customers were also made to feel that their application was more likely to be successful and so wholeheartedly bought this additional policy.

Consumer rights

Until the PPI scandal broke, many people may have been under the impression that there was a whole different set of rules when it came to consumer rights and financial products. This is not the case; for example, you do not need to buy any other product from the bank at the time other than your loan or credit card etc.

PPI showed the banking industry that it needed to change in order to gain back the trust and loyalty of its customers. But, it has left many people wondering if banking will ever be the same again.

Do You Have Questions About PPI?

You need to get the right answers with up-to-date information about making a claim for mis-sold payment protection insurance (PPI). And where better than Payment Protection Scotland, a leading, reputable claim management company specialising in PPI claims in Scotland?

Ask

My bank has said no to my claim for compensation after I tried to claim for mis-sold PPI. I have heard I can take my case to the Financial Ombudsman but I don't know how to do that. How do I go about lodging my complaint? Is it worth it?

The Financial Ombudsman is the independent people to turn to if your bank or lender has refuted your claim for PPI compensation.

You will find full details of how to do this on their website - you can submit your claim online. The process is simple, with the form taking you through your claim step-by-step.

However, some people can find it daunting to complete these forms, especially as they are unsure what they need to be telling the Ombudsman to get their money back.

Payment Protection Scotland can help with your claim for compensation either by submitting it to your bank or lender in the first instance and following it up by submitting your case to the Financial Ombudsman if necessary.

What can I do if I think that the compensation being offered is not right? I had the PPI policy for years and yet they are offering me a few hundred pounds. I have calculated that my premiums alone are nearly three times the amount that they are offering.

You can ask the bank or lender for a breakdown of the compensation and how much is being offered and why they arrive at this figure.

You do not have to accept the offer that they make.Some customers have only to realise that they were entitled to more.

If you are unhappy with how your case is being handled, you can ask Payment Protection Scotland to become involved. We can present the bank or lender with a clear breakdown of what we calculate is owned to you but if they continue to dispute it, you can submit your claim to the Financial Ombudsman.

What does no win, no fee mean? I see many claim management companies advertise their services this way.

It means exactly what you think: if we are not successful in claiming your money back, we don't charge you. But even though it sounds and look simple, always check the small print as some firms will charge you some kind of fee - but Payment Protection Scotland don't!

Why not call us for more information? There is no obligation when you call us to continue with your claim.

PPI, Deadlines And Claiming Back Commission Payments

You may remember that some time ago, a consumer won a ruling against the company that sold her PPI for failing to disclose the amount of commission they were being paid for selling her a payment protection insurance (PPI) policy.

Clock

Many financial experts have been left wondering how the outcome of this case will affect PPI claims made in the past and those to come. It could mean that customers are entitled to yet more PPI compensation.

Financial Conduct Authority

The Financial Conduct Authority (FCA) is the banking industry regulator and they have decided how the Plevin case ruling should apply to PPI cases now and those settled in the past.

Of the amount of commission paid on the sale of a PPI policy was more than 50% of its cost and the consumer was not made aware, they are entitled to this money back.

The FCA has been consulting on a PPI complaints package. As well as looking to end PPI claims for compensation with the August 2019 deadline in place, they also wanted to be clear on the impact of the Plevin ruling.

The FCA consulted on;

  • The approach to fairness and redress in PPI claims
  • To reflect any previous rebates when customers cancelled PPI to be considered when reflecting the final PPI payment
  • To address and clarify how firms and banks assess fairness and redress where commission or profit-share rates vary

Putting the PPI deadline in place

Previous to the summer of 2017, the FCA would not entertain the idea of a PPI deadline simply because the numbers of customers yet to make a claim was significant. Some critics argue that the case has not changed very much with only 40% of people who have a claim have yet to do so. That leaves 60% of people with a PPI compensation claim yet to claim their money back.

Andrew Bailey the head of the FCA says that "Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity".

With the impact of the Plevin case hot on the heels of the announcement of a firm PPI deadline, making sure all consumers get their money back is a priority.

What this means for you

As a consumer who was possibly mis-sold PPI, you need to be clear about whether you intend to make a claim for compensation or not.

Once the deadline has passed, you will have no way of claiming your money back for a PPI policy that was potentially mis-sold to you prior to July 2017. This could mean giving away your money for a second time and could be anything from a few hundred pounds to thousands of pounds.

Can you afford to let this money slip through your fingers? Why not contact a reputable and trusted claim management company specialising in PPI compensation claims? Contact Payment Protection Scotland today.

I agreed to PPI. Can I claim for compensation?

There are many statistics, facts and figures around PPI but one statistic released suggests only 40% of people who had a claim for payment protection insurance (PPI) had done so. With the PPI deadline of August 2019 closing fast, there were discussions as to why people were not claiming their money.

Iagree

There were three main reasons suggested. Do any apply to you?

Apathy

The first reason is apathy, a boredom with the whole issue of PPI, what can be claimed, by when and by whom.

In other words, PPI is now so familiar that people assumed it was a good news story - people receiving sizeable financial windfalls - that affect everyone else but them.

Unaware

There is also a theory that there is a large group of people who are simply unaware that the PPI mis-selling debacle affects them.

This is because PPI was added to some products without the consent of the customer. If you applied for a credit card online, the opt-in box for PPI was already ticked. In other words, you were unlikely to check the small print of the policy and realise it was not the best fit for you.

Agreement

But there is a third theory as to why some people are possibly not claiming PPI compensation - they think that because they agreed to the PPI policy at the time of sale, that they do not have a claim for compensation.

The truth is, even if you did agree to buy PPI, it is still possible it was mis-sold to you.

And here's why;

  • Impressions

Were you given the impression that you had to buy PPI? Or maybe the impression given was that the PPI policy and the loan went hand-in-hand? In other words, to get the loan, you needed to buy PPI too.

There are many people who agreed to buy PPI because they were given the impression they had to, they should do or they needed to.

When you buy a loan or credit card etc. you don't have to buy any kind of insurance policyfrom the bank.You are free to shop around, compare policies and buy the one that suits you. Buying insurance is not - and never has been - a pre-requisite for applying for a loan or credit card etc.

  • The small print and the exclusions

Were you told what a great policy PPI was? Were you told that should you be unable to keep up with repayments because your income dropped that PPI would step in and make the repayments for you?

But, were you told that the policy only paid out in 15% of cases? Did the bank representative tell you that to make a claim, the process was complicated, complex and drawn out over a long period of time?

The truth is this - even if you agreed to PPI, you were unlikely to have been given all the facts on which you could make an informed decision for yourself.

You could have a claim for PPI compensation so call Payment Protection Scotland NOW!

The 4 Main Issues with PPI

Knowing what the problems were with the most mis-sold product in banking history, means that you have a stronger case when it comes to claiming payment protection insurance (PPI) compensation.

There were many problems with PPI…

Four

1. PPI was expensive

The more an insurance policy covers, the more expensive it tends to be. PPI offers very little cover but was incredibly expensive.

The problem was, people were not made aware of their consumer rights and so were not told they could shop around. This meant that people bought a poor-vale-for-money product when they could have got a much better insurance policy, for a lot less.

2. PPI was ineffective

What many customers did not realise at the time they were sold the policy, was that PPI was structured in a way that made it very difficult and complex to make a claim.

With an insurance policy, you would hope that in the event of a claim, they would react quickly. In most cases, insurers do but in the case of PPI, making a claim was complicated.

If you claim was successful - and this was unlikely - it took several months for the policy to kick into action. This in itself is deemed as unacceptable.

3. PPI was mis-sold

Many customers were given the impression PPI was essential and compulsory.

A bank or lender can insist that a customer protects their investment or loan with some kind of insurance policy. But they cannot insist that it is their product and their product alone.

You can shop around and compare policies, probably like you do with energy prices, car insurance, home insurance and so on.

4. PPI was 'inefficient'

The payout rate on PPI policies was 15%. On car insurance, over 85% of claims are successful - you can see the discrepancy between the pay-out rates.

The sad fact is, many people thought they had done the right thing and that they were protecting their debt against a loss of income. When they became too ill to work, they turned to PPI to cover their repayments. At a time when they were vulnerable, the policy did not pay out.

This simply added to their stress and worries, a situation that was wholly unacceptable.

The time has come to claim your money back

If you have a PPI policy, the chances that it was mis-sold to you are high. You could claim all your premium payments back, as well as interest and any costs or fees that were incurred on your account because of PPI being added to it.

Payment Protection Scotland can help on a no win, no fee basis.

The 2019 PPI Deadline – What You Need To Know

You may have heard that there is a PPI deadline looming. It is only a few short months away.  In order to claim your money back, you must do so before the deadline expires at 11.59pm on 29thAugust 2019. This is what you must know about making a claim for compensation, and the deadline…

Deadline

#1 The deadline has been set.

The deadline is firmly in place and for any consumer who thinks they were mis-sold PPI before the summer of 2017 and want to claim their money back, they must do so before August 2019.

The FCA and consumer group - and us - are encouraging customers not to leave their claim to the last minute. We don't know how well IT systems would cope if there is a flurry of cases lodged right up to the deadline and you wouldn't want to miss out on thousands of pounds of compensation due to a computer glitch, would you?

#2 This deadline doesn't include 'new' PPI claims.

If you were mis-sold PPI after July 2017, this deadline won't affect you. But the rate of new PPI sales is so low, this is unlikely to affect you.

This deadline is for PPI policies mis-sold before July 2017 and you have until 11.59pm on 29th August 2019 to lodge your complaint with the bank. Everything else stays the same - the bank has 8 weeks in which to respond and so on. If they refuse your claim, you can still take it to the Financial Ombudsman for their final judgement.

#3 Customers miss out. Possibly.

Some critics are already saying that customers could miss out on the money that is owed to them. The Financial Conduct Authority believes that there has now been a sense of apathy set in with compensation claims for mis-sold PPI and thus, by setting this deadline, customers will be stirred into action.

#4 Another deadline has already passed for many. Or has it?

Back in 2013, banks and lenders were instructed by the Financial Conduct Authority to write to all customers that they knew had a PPI policy and invite them to make a claim. They did this with thousands of people across the UK receive letters from their bank. Customers had three years from the date of the letter within which to make a claim and the first of these deadlines will start to expire in 2016. However, it seems that the FCA is encouraging anyone with a PPI policy to make a claim. Is this you?

#5 The numbers of claims being made per month still number tens of thousands

Many people think that this points to the numbers of PPI claim left as being low but this is not the case. There are still thousands of claim being submitted every month and even though the rate is slowing, the Financial Ombudsman predicts that there are still tens of thousands yet to be made - and some of these could be far more complex than early cases.

If you think you have a claim for mis-sold PPI, call Payment Protection Scotland for more information on how to make a claim.

What Can You Spend Your PPI Compensation On?

Of all the questions we are asked about claiming for mis-sold payment protection insurance (PPI), this is the one that gives us the most joy to answer.

Spend

In the main, you can spend your PPI compensation in a way that you see fit but, many people have all kinds of questions about the windfall that they receive, more so when the amount they claim back is substantial.

I am in debt. What should I do with my PPI windfall?

This is a good question, the answer to which should be explored with an independent financial advisor. Every person's situation is different and thus, this is only a summary of what you could do and is not meant as advice on your debt issue.

If you have an Individual Voluntary Agreement(IVA) or in a type of sequestration agreement, you may find that your PPI compensation will be seen as a windfall. In law, this means that it must be used to pay off creditors and agreements etc. Failing to do so could land you in trouble which is why we always strongly advise seeing a debt expert.

If your account is in arrears and there is no formal or legal arrangement as above, it helps your credit score to pay off these arrears, and bring any accounts back up to date. It also true to say that if you can afford to pay off the debt, this places you in a strong negotiation figure. Ask the bank or lender for a settlement figure, as this could be less than what you owe.

Can I spend it on anything?

Yes you can, but there has been some research about how people do spend their PPI windfall and the results are interesting:

  • The vast majority of people bought a brand new car. This in itself has proved a valuable boost to the care sales within the UK and thus, has had a positive knock-on effect on the economy.
  • The second largest spending category of PPI compensation was onhousehold goods such as freezers and so on, for the home. Again, this has proved a valuable boost to the economy.
  • Thirdly, people enjoyed a well-earned break, taking a holidayto foreign climes.
  • Many people chose to save their windfall, and some spent it on food, as well as buying clothes and shoes for the family.

Can Payment Protection Scotland help me claim money back?

We could if you have an eligible claim for compensation. Why not call now to find out more?