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The Top 5 PPI Questions

Sold on a hard-to-imagine scale, payment protection insurance (PPI) compensation has been claimed by a large chunk of the population.

But with 60% of people with eligible claims yet to claim their money back and with a June 2019 PPI deadline looming, we thought we would look at the five most asked questions about PPi and the whole mis-selling saga.

1. HOW were banks mis-selling PPI?

In most cases, banks and lenders did not fully explaining the policy to customers.

For example, they did not tell customers that if they were self-employed, that their claim on the policy was unlikely to be successful unless they closed their businesses down.

Customers were also given the impression that, without PPI, their application was unlikely to be approved. There are cases where PPI was added at a later date and you were simply informed what a great product it was - and not that it was possibly unsuitable.

2. WHY do some reports suggest that the culture of the banking industry at the time lent itself to the mis-selling of PPI?

PPI was a product that the bank liked because for each PPI policy sold, banks, lenders and brokers made a profit.

Employees who sold policies - either face to face or over the phone - were also making commission. in fact, it is now generally accepted that commission rates were way above salary rates.

These two factors combined, as well as lack of a regulator with teeth, presented unfettered opportunity to mis-sell PPI.

3. HOW do I make a claim?

You can contact your bank or lender direct and tell them that you believe you were mis-sold PPI. This can be done via letter. Bear in mind that you need to proof you were mid-sold the policy.

Or, you can get help to a make a claim. We charge a fee for this service, a % figure of the final PPI compensation you successfully claim back.

We are professional and passionate in their dealings with claiming back PPI compensation on your behalf. We do all the hard work, leaving you free to enjoy your compensation when it arrives.

4. WHY have my bank written to be me about PPI?

Back in 2013, banks and lenders were told that they must inform customers that they may have been mis-sold PPI and that they can make a claim. Some banks and lenders sent forms with these letters, inviting you to complete and make a claim.

Ignoring this letter could mean that you have missed out of PPI compensation! If you think you received such a letter, contact us NOW!

5. WHAT is the time limit?

There is a 6 year 'rule'. This means the account needs to have been active within the last 6 years BUT, the Financial Conduct Authority has been clear that anyone with a PPI policy that was mis-sold to them is entitled to make a claim.

Can PPI Claims be Made if You Are in Arrears?

Wondering how or if you are entitled to make a claim for PPI compensation and issues relating to debt are common questions asked of the team here at PPI Scotland. Read on to find out more…

Payment protection insurance (PPI) has made the headlines many times in recent years.

Shortly after the announcement that customers could claim their money back, came other revelations. Customers had not, we were told, been compensated correctly and thus, these customers were compensated further.

What we need to remember is that behind these stories and revelations are people. People like you. Many people have claimed their money back, but there are a group of people worried that this will not be possible for them.

And this is because they are in debt or arrears to their bank or lender.

Does being in debt or arrears make PPI claims more complex?

Not necessarily. We advise that you take your time and check over all the details, as well as any offers of payments.

Some people assume that because they are in arrears they are not entitled to make a claim but this is not the case.

Your debt could have been made worse by the addition of PPI

The cost of PPI in some cases was added in a lump sum on top of the amount you borrowed. Every month, this combined total of loan payment and PPI premium, you will have paid interest.

A £3,000 loan may have been affordable but with PPI added to it, along with the interest, the monthly payments would significantly increase.

This meant the amount you paid back was larger than you expected. As you were tied into the loan, you had no other option but to pay it.

You may have missed some payments and fell behind. Now added were costs and late payment charges making your situation worse.

And the spiral continued.

You CAN make a claim for PPI compensation

PPI claims can see a large proportion of this loan written off, especially when you also factor in the costs and fees that are also claimed back as part of your PPI compensation claim.

Irrespective of whether you are in arrears of not, if you were sold a PPI policy that was not right for you, you ARE entitled to claim your money back. This is YOUR money and the bank unfairly took it from you.

If you have an IVA agreement, we will need to discuss your claim further but you are still entitled to claim PPI compensation if the product was mis-sold to you.  

Call our knowledge team today for a no obligation chat on claiming your money back.  

Will There Be a Rush of PPI Claims in 2017?

The announcement of a PPI deadline for June 2019 has once again ignited debate around PPI and whether customers are being railroaded into a process that is benefitting the banks and not them.

Many people predict that 2017 will see a surge in PPI compensation claims. Claims for mis-sold payment protection insurance (PPI) have remained steady in recent years but a clutch of PPI experts, including the Financial Ombudsman believe that cases in the coming year will be the biggest yet.

In fact, the Ombudsman is estimating they will resolve a further 360,000 PPI cases in 2017. So far, banks have collectively paid out £24 billion in compensation since 2011 - and this figure is set to rise even further.

Is Your PPI Compensation Claims One of Them?

Claiming compensation for mis-sold PPI is an action that many people can take simply because PPI is the most mis-sold financial product in British banking history.

And this is why;

  • It was often sold to the customer without their knowledge - you may not have realised that when you applied for a credit card online, for example, that the 'buy PPI' box was already ticked. You didn't need or in many cases, you were not covered by it, meaning you are/were paying for an insurance policy that you didn't want, need or use.
  • Compulsory purchase or not? - PPI is not a compulsory purchase. A bank or lender may insist you have some kind of insurance cover to protect your income when they lend you a large amount of money. This is a common requirement when buying a mortgage. But, the bank cannot stipulate that you buy their own policy and no one else's.
  • Part of getting the best deal - some representatives also told customers that you were more likely to be accepted for a loan if you took out PPI. At times when getting credit was hard, many people fell for this tactic. This is not the case and never has been. Any decision whether to lend you money or not is dependent on your credit score.
  • A packaged deal - some customers were also given the impression it was part of a bunded deal and the best thing for them.
  • Medical exclusions - were you told about some of the illnesses that were excluded under the terms and conditions of the policy? Were you told that existing illnesses were not covered? Or that 'bad backs' and mental health issues were not covered either?
  • Low pay out rate -and would you have bought the policy knowing that it paid out in only 15% of claims or that the process of claiming was long and complex?

If you have PPI, you may have a claim for compensation. Find out today by contacting our team at Payment Protection Scotland.

Frequently Asked Questions on Claiming PPI Compensation

Claiming PPI compensation you are rightfully owed is, in most cases, simple and straightforward. The paperwork is all present, PPI is clearly marked and the reasons for mis-selling are also clear.

These customers, within weeks, will have a PPI compensation settlement. They can take the luxury holiday they have not been able to afford or maybe pay-off some debts, invest in some stocks and shares or simply enjoy their bank account being back in the black.

But, for other customers the journey is not so smooth…

The 'I have no paperwork' customer

On one hand, you want to make a claim for PPI compensation but on the other, you need to be 100% confident you have a PPI policy, not easy when you don't have the paperwork.

It can be tempting to put a claim in, without really knowing but you can find out.

How PPI can be 'tested'?

If there is no paperwork, the following courses of action can be taken:

  • Contact your bank or lender asking for a copy of the original documentation, along with any additional paperwork. You can also ask them if there is PPI on any of your accounts and they should tell you. We can do this for you but we will need written permission from you. Be aware, however, your bank can charge you a small 'finding fee' for this, usually £10 is the accepted fee level.
  • If this fails, for a small fee, you can join an online credit reference agency. When you take out a loan etc. there is a credit search made with these agencies and a score applied to you. This way, banks and lenders know how much of a risk they are taking. Paperwork, or copies of it, is sometimes lodged with these agencies and may be available.

What happens with debt?

If you have significant debt with a bank or other lender, claiming back PPI compensation could see you wipe out any debt and still be left with a lump sum. If you are due PPI compensation, the bank or lender may apply it against your debt, although this is unlikely. After all, this is your money. But, if you have an IVA, the situation is different. Contact our team for advice.

If they say no, is that it?

Many people think that if the bank or lender refutes their claim for PPI compensation, there is nothing more to be done.  You can refer your case to the Financial Ombudsman - or we can do so on your behalf - and they will make the final decision.

With a June 2019 PPI deadline now a possibility, isn't it time you made your PPI compensation claim?

PPI – What’s Changed?

The compensation process for mis-sold payment protection insurance (PPI) began in earnest back in January 2011. With billions of pounds already repaid to customers, there are more claims to come and 2017 could be the year you make your claim for PPI compensation.

But, as a consumer, you may be wondering what has changed to stop something like this happening again.

There have been changes, some of which are specific to the sale of PPI and others that inform food practice across banks and lenders in general.

1. Separate sales - one of the biggest issues with PPI was that it was sold at the same time as the main product, such as a loan. Banks and lenders did, to a certain extent, play on the emotions of their customer, selling them an additional product at a time when they would agree to it because they thought it was important to their loan application etc.

2. Not advise sales - people also thought that when a bank or lender suggested PPI they were in fact, advising them to buy it. Banks argue this was not the case but customers all over the country beg to differ. And so do we! This is why the Financial Conduct Authority have changed a rule: if a bank is advising a customer to buy a product, they need to tell them why in writing.

3. Make terms of sales clearer - banks and lenders should no longer be offering additional products alongside loans etc.at the time of sale. They should leave a gap of at least 7 days before they offer you an insurance product and make it clear that not buying the product will not affect their application for credit.

4. 'Opt in' online - another common issue was that when people bought credit cards or applied for loans online, the 'do you want PPI?' box was already ticked. Unless you scrolled to the end of the terms and conditions, you would have failed to see this. You also wouldn't get chance to examine whether this was worth paying for. In other words, you could be paying for an insurance product that did not cover you.

5. PPI is no longer sold - in most cases, PPI has died a natural death as a result of the mis-selling scandal. There are other similar products, such as income protection insurance, that are far superior products and worth the money.

If you have PPI, you could have a claim for compensation. Why not call us now for a no obligation chat?

Why Claim PPI Compensation?

I've heard some real horror stories of people waiting months to for their PPI compensation to be paid and how stressful they found the whole process.

And when they did get their money, it was a lot less than the average of £2,750 that was promised on the text they received from an official PPI claim company.

And then the company took a big slice of it too! I don't think I'll bother claiming PPI compensation. It doesn't seem worth it.

There are many stories of people trying and failing to claim PPI compensation. There are also stories of people being landed with an unexpectedly large bill from the claim management company who helped claim their money back.

We guarantee this won't happen with PPI Scotland. And this is why;

We don't make promises we can't keep

We always make sure that any advertising we do is correct and truthful. The presence of PPI is, on its own, not enough to secure compensation. This is why we always say we need to talk to you, and asses you claim against various criteria that point to success. We believe this is one of the reasons why we have a 93%+ success rate.

We are transparent about our fee

Unlike some other claim management companies, we have always been clear on what our free structure is. We charge a flat fee meaning that if your claim for PPI compensation turns out to be complex, you won't have a bigger bill.

We change our fee from time to time, so call our expert team today to ask about our current fee and how to pay it.

We operate on a no win, no fee basis

No win, no fee means exactly that: if we don't win your case, you don't have to pay us for our time nor resources.

There is no need to make payments on account nor pay us any money up front. We take on the financial risk of your case so you don't have to. You only pay when your claim for PPI compensation is successful.

We have a rigorous assessment process conducted by expert, knowledgeable staff

It sounds scary 'rigorous assessment' but what we mean is this - our expert staff will talk you through a series of questions. By answering these to the best of your ability, we can be clear about not only whether you have a claim, but how much PPI compensation you could be entitled to.

So why not start the conversation today? Call Payment Protection Scotland about your PPI compensation claim.

Is PPI Compensation Finally Disappearing?

Fresh from the festive season, you may be looking forward to 2017 with a mix of excitement and anxiety at what the year holds.

Is this the year that YOU claim PPI compensation? Is the writing on the wall for the whole PPI compensation saga? Or will there be another twist in the saga that has been running for over a decade?

1990s

No one would have thought that back in the mid-1990s, when concerns were first raised about PPI, that in 2017, the PPI compensation total would be standing at over £25 billion.

Vince Cable raised a variety of concerns regarding PPI in the House of Commons including how it was sold, the expense of the policy and the complexity of the claiming process, as well as the low pay out rate of successful PPI claims.

2000s

There were complaints and super-complaints from leading organisations such as 'Which?' until finally, on referral to the now-defunct Competitions Commission, it was found that the selling of PPI was unfair.

What followed was more wrangling, with legal arguments and judicial reviews. But, after one ruling the banking industry and its representative backed down - and the floodgates opened.

By now, the PPI saga was nearing the end of the first decade of the 21st century. In January 2011, the first PPI compensation payments were made.

Twists and Turns

There have been several twists and turns in the PPI story;

  • Banks were told to re-open some older cases back in 2014 after it was found that they had under-compensated 2,500 customers
  • Banks and lenders were also told to compensate any fees and costs too, that would have been charged as a result of PPI being added to an account
  • Banks had to write to customers, inviting them to make a claim for PPI compensation
  • A case brought to the Supreme Court at the end of 2014 may change PPI compensation payments in 2017 after it ruled that by not disclosing to customers the level of commission representatives were paid for selling PPI, the banks and lenders were acting unlawfully

Is this the year you will claim PPI compensation?

The PPI deadline is June 2019, although we are still waiting for full details on the how and when this deadline will be applied. But, don't wait.

There is no need to wait. All you ned to do is find the documentation that shows you have PPI and then call Payment Protection Scotland. With a high success rate, we can help you claim the money you are entitled - and before the June 2019 deadline.

PPI Deadline 2019 – What Does It Mean?

Have you heard that the Financial Conduct Authority (FCA) may be bowing to pressure and introducing a deadline for PPI compensation claims? What does it mean? And why are the FCA thinking of introducing a deadline?

The FCA up until recently, has always been quite clear that a PPI deadline was some time away. The banks had asked and pressured for a deadline on several occasions previously, but had always been decisively and sharply rebuffed.

Dragging on and on

The first PPI compensation payments were made in January 2011 and now, a full six years and £25.5 billion later, the FCA has decided that a deadline is needed to draw a line under the whole unfortunate and embarrassing episode.

A change at the top

Some commentators note that this conciliatory tone within the FCA has come about since a change in the head of the FCA. Outgoing head Martin Wheatley was stringent in his dislike for a PPI deadline and even less impressed by the banks calling for an end to the mess that they had effectively created.

The new head of the FCA, appointed a year ago in January 2016, Andrew Bailey seems to have a less rambunctious tone toward the British banks and lenders.

Chaotic and deep

There are times when you could describe the PPI compensation process as chaotic.

Back in 2011, the banks made derisory offers of a few hundred pounds to customers who were owed thousands.

Then banks were suggesting that they didn't hold the information to give customers the details they needed to lodge a PPI complaint.

Customers were also having perfectly reasonable and obvious PPI compensation claims turned down thus, resources at the Financial Ombudsman were being swallowed by thousands of PPI compensation cases every month that should have quickly and easily resolved by the banks in the first place.

Then, it became clear that bank staff who sold PPI has made large commissions on sales of PPI something the Supreme Court ruled was unfair.

The PPI saga has also run into billions, with the current total standing at twice the budget for the Summer Olympic Games back in London, 2012.

It is a deeper chasm of embarrassment than anyone could possibly imagine back in the mid-1990s when the sale of PPI was referred to the then Competition Commission.

The deadline stands

If the deadline is confirmed as being June 2019, if you don't claim PPI compensation before this date, it will be too late. Call us now - we can help.

5 Top PPI Mis-selling Reasons

It is now an infamous saga, one that has forced changes in the British banking industry. It has seen vast changes and for the customer, it has been a chance to claim back their money after being mis-sold payment protection insurance (PPI).

With a deadline of June 2019 signalling the possible end of the PPI mis-selling saga, you may be thinking of claiming back your money.

If this is the case, you will need to know the top mis-selling reasons as one of these could be the reason why you can claim back thousands of pounds.

With up to 70% of customers being sold a policy they didn't need, you could on the brink of claiming back a substantial PPI windfall.

Unaware or did not agree to buy PPI

We find that many of our customers were unaware that they had a PPI policy. Many customers also had NOT agreed to the policy, mainly as it added significant cost to the loan or because they did not need it. On examining their paperwork, however, they found that a PPI policy had been added to their loan! If the reason for mis-selling detailed in your letter of complaint to your lender is you were either unaware or did not agree, then the onus falls on the lender to provide proof of your agreement.

'Fully protected' loan

Some customers purchased a 'fully protected' loan, only to find that this included a form of PPI. Whilst this may not be an issue in some cases, the terms and conditions of the PPI were not fully explained meaning that the possibility of you NOT being covered by the PPI policy is high.

Compulsory or not?

Other customers were told that the PPI policy was compulsory. The terms and conditions of the loan may state that some form of payment protection insurance is compulsory - this in itself is not the problem but you may have been given the impression that the only product that was suitable was their own PPI policy. If this happened to you, you may have a compensation claim.

Pre-filled application forms

Many lenders and banks pre-filled application for their customers and whilst this may seem helpful, look professional, neat and tidy, the likelihood is that many of the 'tick boxes' of optional items such as PPI, were already ticked. In other words, unless you noticed this or it was drawn to your attention, you would not have opted out. This is not fair selling.

Online or over-the-phone applications

Although the lender could say everything was in the terms and conditions, the long reams of small print are not something that are comfortable to read. In other words, the bank needed to draw things to your attention and that may not have happened.

We can help you claim your money back and we can start working on your case today - call us now!

Key PPI Terms Explained

The payment protection insurance (PPI) mis-selling scandal has been running for some time now. Like a good soap opera, it keeps rejuvenating its main storyline so that the good guys always win - the good guys in this soap opera, being the customers and consumer organisation that have fought long and hard to make PPI compensation a reality for the thousands of people duped out of their cash.

But when it comes to understand some of the terms and jargon associated with PPI compensation, it can be a little more difficult.

Here at Payment Protection Scotland, we have gathered all these terms together and endeavour to explain them;

APR - is a form of interest banks and lenders charge on product and is calledAnnual Percentage Rate. The higher the APR, the more interest you will pay back on your loan or credit card. You should get your premiums back and the interest charged on your loan or credit card and an additional 7% on top.

Generic term - this means that the term being used is a general one, a phrase or word that covers a whole heap of additional policies etc.PPI is a generic term; in other words, there are many payment protection insurance type policies but individual policies from different banks or lenders will be called different names, sometimes depending on what product they are meant to cover.

Examples include:

  • ASRI - Accident, sickness and redundancy insurance
  • ASU - Accident, sickness and unemployed insurance
  • CCI - Credit care insurance
  • MPI - Mortgage payment insurance

There are others too; if you are unsure, contact Payment Protection Scotland?

Letter of Complaint - this is the formal name given to the detailed letter or form you will send to your bank or lender asking for your money back. It sets out the reasons why you believe you were mis-sold PPI. There are examples available online or when you engage PPI Scotland to act on your behalf, we construct this as part of the claims package.

NB - Each account with PPI requires a separate letter of complaint. Your bank or lender assesses your account and your claim for compensation from the details contained in this letter.

Claims Management Companyor CMC - this is a company that acts on behalf of its client to make compensation claims. There are many companies who claim compensation for a variety of things, such as if you have been injured in an accident.

Payment Protection Scotland is a claims management company specialising in making compensation claims for mis-sold PPI. We charge a fee for our service, which can be found in the terms and conditions on our website OR, better still, give us a call and speak to one our friendly advisors.