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PPI: You Probably Don’t Even Know You’ve Got It!

It is a scandal that has rocked the British financial industry, forcing several step changes to the ways banks and lenders operate. But even with the announcement of a PPI deadline of late August 2019, the Financial Conduct Authority is left with a headache: just how do they encourage people to make a claim for PPI compensation is people don't even know if they had a PPI policy or not?

Do You have PPI?

We want anyone who has a claim for PPI to get their money back and, as such, we have been giving out all kinds of suggestions and ideas over the years to help people locate the PPI policy that could lurk on loans, credit cards, catalogues and more.

To help determine if you are likely candidate for having PPI, answer the following questions:

Did you take out or have a loan, credit card, catalogue, car finance, store card that allowed you to spread payments over many months or any other kind of borrowing from the mid-1990s onwards?

If you did, the likelihood is that there will be PPI on your accounts. Most banks and lenders were affected by the mis-selling scandal and so even if a bank or building society says they have compensated all the customers they say it affects, there are people like you who have yet to make a claim.

Where you sold additional policies at the same time as you took out a loan?

Even today, when we buy something, usually electrical, we are asked if we would like to protect it with an extended warranty or some kind of breakdown insurance. Depending on the product you are buying and the insurance policy being offered, it could be a good idea.

Or, the policy may be so basic that actually, it is not worth the paper it is written on or the money you ware paying for it. It may also be that another insurance policy you already have would cover the problem if there was one. And this is what happened with PPI.

PPI was often sold as an additional 'catch all' policy that some people felt compelled to buy and others thought that it was compulsory. But when you take out a loan or credit card etc., you don't need to buy anything else (although this can vary for bigger loans or mortgages).

Did you apply for a credit card, store cards, loan etc. online?

You may not have realised you bought PPI at the same time you opened a credit card account or bought a loan online etc. especially if you did so online. The option for PPI was usually already ticked, meaning you bought it and were paying for it without realising.

We can help determine if you have or had PPI and whether you have a claim for compensation. In most cases, customers do have a claim, successfully claiming all of their cash. Isn't it time you did the same?

PPI & Debt: Quick Questions and Quick Answers

If you are juggling debt, you may wonder if PPI compensation is yours to claim. If it was, you could make headway in clearing some of these debts. But you probably have many questions. You may be nervous about making a claim too when faced with banks, lenders and the possibility of more hassle when it comes to money you owe. Our quick questions and answers cut through the waffle…

Can I complain about PPI while on a debt management plant or DMP?

YES, you can complain about the sale of PPI whilst you are on the DMP. If your bank or lender is NOT a creditor, any PPI compensation due to you, you will receive.

But, if your bank or lender is a creditor, any PPI compensation you receive will in part or all of it, be offset against the money you owe in the DMP.

Either way, it is worth making a claim for PPI compensation.

What about if I have a debt relief order or DRO?

YES, but, if you make a claim during the 12-month moratorium, you may find that your DRO is revoked. This is because a PPI refund means you are no longer eligible for a DRO.

If you do want to complain about PPI, you must tell the official receiver that you want to do so and whether you have complained previously. If you don't tell the official receiver and continue with your claim, your DRO restrictions may be extended and it may be that you committing an offence too.

I have an individual voluntary agreement (IVA), can I claim PPI compensation?

If you are on an IVA, it is unlikely that you will receive any PPI refund or compensation regarding the complaint if you owned the policy when the order was made. This includes if you have been discharged from the IVA too.

This is because a PPI policy is considered an asset and is therefore covered by the terms of the IVA.

If you still want to claim, an insolvency practitioner could help you and explain in more detail how your claim or refund would be dealt with. It is important to seek advice as failing to do so and receiving a 'windfall' of cash could mean you commit an offence.

 If you claim is successful, it is more than likely that the PPI compensation would be paid to your insolvency practitioner.

Can I complain about PPI if I have been declared bankrupt or sequestrated?

It is unlikely if you have been declared bankrupt or sequestrated that you will receive any refund in relation to a PPI complaint if you owned the policy when the order was made. This includes discharged bankrupts and sequestration too.

This is because the policy would have been counted as part of the bankruptcy estate. It is the official receiver who owns the PPI policy and thus they have the right to claim any PPI compensation owed.

Again, it is important to seek formal advice as making a claim and pocketing the proceeds could see you prosecuted for breaching the terms and conditions of the bankruptcy or sequestration.

Want to know more? Our team are on hand to answer your questions

Can I Claim PPI Compensation If…?

Have questions regarding claiming PPI compensation before the deadline, 29th August 2019? You've come to the right place!

… I am in arrears with the bank or lender?

Yes, you can! There is nothing stopping you from claiming PPI compensation, including whether you are in debt or not. In fact, the high cost of PPI could well be one of the reasons why your repayments were as high as they were.

If you have an IVA or are facing sequestration, there are certain things that have to happen. To find out more, contact our team who can talk you through how PPI will affect your IVA and financial circumstances.

… I am over the age of 65?

Yes, you can! PPI was mis-sold to millions of customers. There are many reasons why PPI was mis-sold but one was that it was a policy that covered people aged 18 to 65 BUT, banks still sold PPI to people who were over the age of 65.

If you were aged under 18 or over 65 when the policy was sold to you, you do have a claim for PPI compensation. Contact our team today!

… If I don't have the paperwork?

Yes, you can! Many people assume that because they don't have the original paperwork for the loan, credit card, etc. that they cannot make a claim for PPI compensation. This is not the case. For a start, banks and lenders do have a digital record of who borrowed money from them and this data includes whether they had PPI or not.

Our team can find out on your behalf if you had PPI on your loan, credit card, catalogue accounts and so on. Give us a call!

… My loan account is closed?

Yes, you can! People assume that there is a deadline or limit about how far back you can claim compensation for mis-sold PPI but we urge anyone who has had a loan or credit card etc., to contact us to find out more about making a claim.

It is your money! Give our team a call to see how we can help.

… I miss the deadline?

No, you can't. The Financial Conduct Authority has set the date by which PPI compensation claims must be made. If you want to make a claim for mis-sold PPI, you must do so by midnight on 29th August 2019.

You don't have long to claim YOUR money back. Give our team a call today and you could be enjoying a welcome windfall within two to three months!

Your PPI Compensation Complaint and the Financial Ombudsman Service

Has your claim for payment protection insurance (PPI) compensation rejected? If it has, you are not alone. Other customers have had their claims turned down by the banks. But if there is one thing you can predict about the PPI mis-selling scandal is that it is unpredictable.

If you have had your claim rejected, there is a course of action you can take: contact the Financial Ombudsman Service (FOS) and ask them to take a look. They will make the final decision after examining all the evidence.

Did you know...?

An estimated 53 million PPI policies were sold to unsuspecting customers, with around 45 million of these being sold by banks.

It is not just down to one bank or lender either, it is widespread across many financial companies. Many customers have already made successful claims to get their money back from their bank or lender.

How to make a claim

Contact your bank or lender, show you have PPI on the account in questions and tell them why you think you were mis-sold PPI. You don't have to use a claim management company but many people use reputable companies like us because we do all the legwork - in other words, we chase the bank or lender throughout the entire process and we check that you get the right amount of PPI compensation too.

Did you know...?

Your bank or lender should respond within 8 weeks of you submitting a PPI complaint to them.

If your PPI case is rejected

Don't be disheartened. There is one further option open to you - if you still think you have a case for PPI compensation, you can submit your case to the Financial Ombudsman Service and ask them to take a look at it on your behalf.

Here's the good news: the Ombudsman are upholding in favour of the customers in nearly three quarters of all the PPI complaints submitted to it.

But the bad news is: the Ombudsman has been deluged by PPI complaints by customers over recent years. Despite employing more staff, they predict it will take 12 months for them to be able to resolve your complaint.

Did you know...?

The Financial Ombudsman Service is receiving 2,000 new PPI complaints a day, the largest number of complaints it has ever received about one, single financial product.

Making a PPI compensation claim is, in most cases, straightforward but sometimes there are complexities. As a claims management company with a growing reputation for quality and success, PPI Scotland will be with you every step of the way.

Call us today for impartial advice on your potential PPI compensation claim!

PPI Compensation Claims: The Facts

Thinking of making a claim for PPI compensation? The recent advert launch has raised many questions for people but what are the facts? Why is the PPI mis-selling saga such a big deal?

How many PPI policies were sold?

It is estimated that 45 million PPI policies were sold, the vast majority of which were mis-sold. Mis-selling means not giving you the full facts about the policy, its terms and conditions, or telling you it was a compulsory purchase or part of the loan agreement etc.

There were all kinds of excuses that people were given to force or compel them into buying an insurance product they really didn't need or want. It is a huge problem, the scale of which has never been seen before.

How much has been repaid?

So far, the PPI compensation bill stands at just over £27 billion but there are financial market experts who believe that this is only a quarter of what is owed to people.

The average claim of £2,750 is calculated by dividing the value of the 45 million policies sold by the thousands of customers thought to have been affected. But it is important to remember this is only an average figure - you could be entitled to less or a lot more.

Who mis-sold PPI?

There is hardly any financial company, bank or lender untouched by the PPI mis-selling scandal. The list includes most, if not all banks and building societies in the UK, the majority of lenders and some brokers too. As well as credit cards and loans, PPI was mis-sold on catalogue accounts, car finance, store cards and mortgages in some cases too.

How far back will my PPI claim go?

Without examining your case in detail, it is impossible to tell but PPI was mis-sold from the 1990s right up until 2010.

That means you could have 15 years of PPI premiums, costs and interests to be compensated to you. And, bearing in mind that many people have more than one PPI claim, you can understand why some people have compensation reaching triple figures sometimes!

When do I have to claim by?

You may have seen the TV advert by the Financial Conduct Authority which launched on 29th August 2017. It uses a mechanical head of Arnold Schwarzenegger zooming around a supermarket urging customers to make a decision.

And it is important you make a decision because there is two years left in which you can make a claim for PPI compensation. After 29th August 2019, the door closes and the thousands of pounds of your money will be lost forever.

Do you have a claim?

The FCA’s PPI Deadline Campaign – Will it Work?

It features and animatronic head of Arnold Schwarzenegger which, say the advertising firm behind the campaign, will 'cut through the noise' surrounding PPI. In other words, they say that our identifying with a well-known Hollywood actor will help us to make a decision about whether we want to claim PPI or not.

If you do, you need to make a claim before 29th August 2019. But will the advertising campaign work? Will it galvanise people into action? Or will the British public still be apathetic about making a claim?

Will it…

Mean more nuisance texts?

Some experts believe that any good effect of the advert will be negated by the fresh wave of nuisance texts and calls from some claim management companies and other firms.

Unfortunately, these spam texts and calls have put many people off from making a claim because they seem to promise the earth but deliver very little.

Claim management companies can, however, be a great tool for some people to use for their PPI claims. Always check the company and look for one that offers a no win, no free service and promise a no obligation chat so that you don't get in tied in. It goes without saying: check their fee structure too!

End indecision?

It may have the required effect on people so that as many people as possible claim their money back. PPI was mis-sold to millions of people, with around 64 million policies sold. In our experience, we find that people are unsure about how to find out if they have PPI.

With your authority, we can find out if you have PPI and on what account(s). You then make the decision whether to make a claim or not.

Be taken seriously?

It's hard to tell. At the time of publishing, the adverts had only just hit our screens being shown in prime-time evening slots in between the nation's favourite programmes and soap operas.

The advert aired several times in one night. Hopefully, there are other versions of the advert and that there will be splurges in the promotional side of the campaign. It may be that the adverts become too frequent, leading to more complacency.

Success will be measured by an increase in both people making claims and those who choose to explore whether they have a claim or not.

Work? Hopefully, people will be galvanised into action to find out if they have PPI. The first step is to find out if you have PPI and we can do that for you. For more information about our no win, no fee service, call us today!

PPI Compensation: The Figures Updated

As people continue to claim compensation, we thought we would take a look at the eye-watering statistics involved in the greatest mis-selling scandal to have ever rocked the British banking industry.

1.2 Million

This is the number of customers who had their PPI claim rejected but could be in with a second chance of compensation. The court ruling of 2014, the Plevin Case, has now been interpreted by the industry watchdog. If commission paid on the sale of PPI was more than 50% and you were not told about it, this construes mis-selling. Does this affect you?

£27.4 billion

This is the current total for PPI compensation paid to customers. But some industry experts believe that this is only a fraction of what is owed to people. As well as the fact that there are a large number of customers yet to claim, some people believe this figure gives a false reading. The Financial Conduct Authority doesn't separate the figure into premiums paid and interest paid which is why, say experts, the true cost of PPI compensation (premiums and interest) could stand as high as £100 billion.

60 million

The number of PPI policies estimated to have been sold since 2005.

12 million

The number of people who have made claims for PPI compensation thus far. This is thought to equate to 20m to 24 million policies. Thus, experts may be right when they say there could be a tidal wave of claims now that the PPI August 2019 deadline has been announced and that the final compensation bill could be in billions of pounds and in triple figures.

£18 billion

The current PPI bill that Lloyds Banking Group have notched up in PPI compensation claims.

£9.1 billion

Barclays says that this £9.1 billion figure is their 'best guess' as to what their final PPI compensation bill will be. They say they have £2.1 billion in the pot yet to be used and don't expect to have to set aside any more money, something that flies in the face of what other financial pundits say till happen over the coming years.

60%

Some experts believe that just less than half of people who have a claim for PPI compensation have gone ahead and done so. That leaves 60% of the 12 million+ customers affected by PPI yet to make a claim. Are you one of them?

£42 million

The cost of the PPI advertising campaign that is due for launch in August 29 this year. This campaign will hopefully reach everyone and persuade them to at least check if they have PPI or not. The bill is being paid for by the top 18 'players' in the PPI mis-selling scandal.

2 Years

The amount of time left to make a PPI compensation claim.

£2,750

The average PPI compensation pay out but you could get a lot more back. Do you have PPI?

PPI Deadline: How to Make a Claim *A Refresher! *

With the PPI campaign about to start, the two-year countdown to the August 2019 PPI deadline is underway.

We thought this was a good time to remind people of how to make a claim.

What is PPI?

PPI stands forpayment protection insuranceand is aninsurance policythat covers your repayments on loans, mortgages etc. should you be unable to make them due to changes or reductions in your income. This lack of income may be due to you being unable to work as a result of sickness, unemployment or redundancy.

You will know if you have PPI (but it may be called something else!) by looking through the agreements and other documentation that came with your loan etc.

What is the problem with PPI?

The idea of insuring your loans against income loss is not a bad idea. The problem stems from the mis-selling of PPI to millions of customers - around 12 million customers, to be more precise.

Bank representatives were paid on a commission basis and this product also provided a massive profit to the banks too. Other problems were:

  • Mis-selling- customers were sold policies that they could not claim on
  • PPI cover runs out- single payment PPI (now banned from sale) was added to a loan as an upfront lump sum fee BUT the cover ran out after 5 years, often falling short of the length of the loan e.g. you would not be covered for the final 5 years, of a 10-year loan
  • Over-priced- many PPI policies were cost far too much compared to the amount of the loan they were meant to cover
  • Limited pay-out period- many customers did not realise that PPI only paid out for a relatively short period of time (usually 12 months)
  • Low cover level- on credit cards, for example, PPI only covered the minimum monthly payments meaning the balance would not be reduced.

How do I know if I was mis-sold PPI?

You may have been mis-sold PPI if:

  • It was NOT made clear PPI wasoptional
  • You were not told of significant exclusions
  • That you would be paying interest in the single payment PPI added to your loan
  • You were not made aware that the cover would 'run out' before the end of the loan it was should be covering
  • If you were advised to take out PPI, then you should have received a written statement as to why the policy was suitable for you
  • You were not told that the PPI policy was being added to your loan or mortgage etc.

How can I claim PPI back?

You can start the claim process yourself or you can come to a specialist like us, PPI Scotland and we can take you through the entire process.

We do charge a fee for this but with thousands of satisfied Scottish customers, there is nothing stopping you from having a no obligation chat with one of our team. Call us and talk through your case with one of our friendly advisers.

How do you know you received the right amount of PPI compensation?

There have been many twists in the PPI mis-selling saga, all of which have shown the true rottenness of the whole PPI mis-selling scandal. You would think the banks and lenders would be jumping through hoops to sort the whole sorry mess they created.

But there have been issues of banks and lenders not compensating people the right amount. What are the issues and have they affected you?

Issue 1: Alternative redress

This twist reared its ugly head a few months ago, with some banks deciding that they would try and cut their compensation bill by using this principle. It is a legitimate form of compensationin some cases although the Financial Conduct Authority has declared it is not suitable in the case of PPI compensation.

Alternative redress is when a financial product has been sold at an inflated price to a customer. This was a major problem with PPI as a policy. There was no like-for-like insurance policy and effectively, without competition, there was no need for banks or lenders to keep the price of PPI low.

In other words, a customer would pay a lot for PPI, over and above its nearest like-for-like policy. Hence, a PPI product sold to a customer at a total cost of £3,000 is considered an over charge, when the exact same product is available for a lot less.

Alternative redress is when you receive back the difference between these two products, meaning you will get some of your money back, but not all of it.

What the FCA say…

PPI is that it is not - and never has been - a compulsory purchase and, in many cases, the customer was not covered by the policy. It applies mainly to the policies sold in one lump sum, known as single policy PPI and are now no longer eligible for sale since the PPI scandal broke.

Issue 2: Not reimbursing administration charges, all of the interest etc.

The second, more recent twist has been the fact that banks and lenders have not been compensating some of its customers the full amount.

Facing an investigation and possibly a heavy fine, it seems that one financial company, in an effort to maintain its profits, has been paying back the premiums customers are entitled to - but have negated to pay back compensation (which can considerably increase the compensation claim), along with any administration fees they charged to 'set up' the policy.

Banks and lenders do charge customer set up fees for various products and they can vary significantly between companies, with PPI being no different. So, not only did they sell you a product at an inflated price that you did not need, they charged you for doing so!

Get all your money back! Get Payment Protection Scotland on the case…

Inundated by PPI ‘Scam’ Texts?

Not sure if they are genuine messages from people really willing to help? We'll help you work out when a PPI text is a scam by answering straightforward questions.

There are many people who profess to being experienced specialists in the field of PPI compensation. As a result, there are thousands of people who receive weekly, sometimes daily texts relating to their PPI compensation claims.

The problems are many and varied when it comes to these texts; on one hand, financial experts are telling us that the majority of us will be entitled to PPI compensation and should make a by the PPI deadline August 2019. But, on the other hand, these texts can be a nuisance as well as wrong. They are a fishing exercise, a chance to tray and hook custom.

These are the questions you need to ask yourself…

How does a company know how much I am entitled to?

In short, they don't.They hope that by making their text sound convincing and telling you they know exactly how much PPI compensation you are entitled to, you will call and they can reel you in.

  • No one knows if or how much compensation you are entitled to until any PPI that you have on your accounts has been assessed, and the calculation applied.
  • No company can find out for you on your behalf without you giving express permission for this to happen, in the form of written authorisation. Any firm who does this without your consent is effectively stealing your data, a criminal offence under the Data Protection Act.

Is everyone entitled to PPI compensation?

It is true to say that there are many thousands of customers who were duped in buying and paying for an insurance policy that was little use to them. The scale of the mis-selling of PPI is huge. The size of the mis-selling scandal has caught everybody off guard, from the banks themselves through the financial industry regulators.

  • PPI compensation is not automatic. You still need to show you had a PPI policy and that it was mis-sold to you. Many less reputable and experienced companies did, in the early days of PPI compensation, submit a large number of ineligible claims.

But could I be owed money on a policy that I didn't know I had?

Again, some companies are fishing for PPI compensation work BUT, what you must remember is that some customers were 'sold' PPI without them knowing.

In other words, PPPI was an addition to your account after you signed on the dotted line for your loan, credit card etc. so it might be that you have no idea you were mis-sold the product in the first place.

Contact a professional and successful company with an enviable reputation for getting results - call Payment Protection Scotland now!