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PPI, the 2019 Deadline and Your Money

The Financial Conduct Authority, the regulator of the banking and financial industry in the UK, is cutting off compensation claims for mis-sold PPI.

This means that after August 2019, you will not be able to make a claim for PPI compensation for a PPI policy sold prior to spring 2017. If you felt you were mis-sold PPI recently, this is not subject to the deadline.

There have been many changes over the years which now mean that there are key points you need to bear in mind now that the deadline for PPI compensation claims has been confirmed:

#1 Just having PPI means it was probably mis-sold

The outcome of the Plevin case - a customer who argued that by not being told the vast amount of commission her broker was being paid, meant she was duped into buying an overly expensive policy - now means that most people were mis-sold PPI.

Staggeringly, 67% of loan PPI was paid in commission and interest which means that you were paying for others to line their pockets. And because the bank didn't tell you, the courts have now ruled that this is another reason why PPI was mis-sold.

This effectively means that billions more is owed to customers across the UK but with many people still struggling to make a PPI compensation claim, it seems unlikely that everyone will get all their money back.

#2 The deadline may seem a long way of but…

… get your complaint made now and beat the queue! The activity around PPI compensation claims is likely to build as the deadline approaches.

The FCA has also promised an all-encompassing promotional campaign to make people aware of the impending PPI deadline and what they can do to claim their money back.

#3 There are still concerns relating to vulnerable people and their claims

From people with debt to people with learning difficulties as well as the elderly, many consumer groups have raised concerns that the deadline will adversely affect people who may not be able to make a claim.

The FCA has promised it will look at the process and ensure that everyone with a claim gets their money back and that it does not come down to people who 'can' and people who 'cannot'.

#4 Don't assume 'it's not me'

People from all walks of life were mis-sold PPI on loans, credit cards, catalogues, store cards and more. Sometimes, PPI was added without your consent or your knowledge. 

And when it was knowingly sold to you, there were many things the bank or lender did not tell you about the policy. Although it was not the policy at fault, the way in which it was sold and the extortionate premiums made it a problem.

#5 A typical payout Is around £3,000

What are you waiting for? Start your claim today.

Your Step-by-Step Guide to Claiming PPI Compensation BEFORE the August 2019 PPI Deadline

The PPI deadline of 29 August 2019 will start to get more air time in the coming months with the proposed launch of the FCA-led campaign relating to PPI and how to make a claim.

At Payment Protection Scotland, we have always been clear, open and transparent about how to make a claim but we thought we would take a moment to remind you of the steps and some key facts along the way;

Step 1 - Find the paperwork

It may take you some time but finding as much paperwork and documentation as you can regarding your loan, store card, credit card, catalogue accounts etc. will help you when it comes to submitting your complaint regarding PPI.

Key facts;

  • It may not be called PPI- it could be called something such as accident and sickness insurance, or card care, or payment insurance.
  • There is no time limit- you can go back year on yearproviding you have the evidence
  • Lenders can provide evidence- if you don't have the paperwork, you can ask your lender for a copy as they do have it (even if they try and tell you different!). They will only have it for the past 6 years hence this is why some people think that PPI compensation only goes back 6 years and no more.

Step 2 - Deciding if you were mis-sold it

They may have told you it was compulsory or given you the impression you had to buy PPI in order to be accepted. It may not have been suitable for you, e.g. you were too old, too young, unemployed, self-employed…

There are many reasons why PPI could have been mis-sold to you. Our team can help.

Step 3 - Do it yourself or use a claim company

Some customers lodge and shade their own PPI complaint. Other people choose to use a claim management company such as ourselves.

The choice is yours but to help you make the right choice for you, check:

  • How much the company charges
  • Whether they offer a no win, no fee service
  • Avoid those that 'promise' or 'guarantee' success
  • Their success rate and assessment process at the start your case

Step 4 - Expect rejection

Not all banks and lenders hold their hands up the first time and admit they made a mistake. Some try to argue that PPI was right for you.

Don't allow the lender to put you off.

Step 5 - Still not happy? Lodge a complaint with the Financial Ombudsman Service

You will need to lodge a PP complaint with your bank or lender first but if they refuse your claim, you can ask FOS to take a look at your case and make the final decision.

Don't wait for the PPI deadline, start your PPI compensation claim today!

The Problems of PPI

As an insurance product, you have probably heard of it and the billions of pounds in compensation now finding its way back to customers who were mid-sold the product.

But what were the problems?

#1 Impressions

For banks and lenders, when a customer takes out a loan, they make money. In a competitive market place, it makes sense that a lender or bank would offer incentives to try and grab as much of this business as they can.

Unfortunately, this included giving the impression that if they bought PPI, the customer was more likely to be accepted for the loan. Thus, they opted for it, the bank made more money and the customer thought they had found a sure-fire way of bagging the loan they needed.

#2 There was no other insurance policy in direct competition with PPI

And this meant that financial companies, brokers, lenders and banks could effectively charge what they wanted. Although income protection offers a great level of cover, it is not the same as PPI so was not a direct competitor that could keep PPI cost in check.

In other words, banks and lenders had carte blanche to do what they wanted in relation to PPI costs.

#3 Not all companies have face-to-face access to customers

And this say consumer groups, is another reason why banks and lenders could get away with charging so much for PPI.

Other companies who could provide PPI and other insurances at better rates may not normally operate at face to face level. In other words, their business would go through brokers and intermediaries who then added significant costs to PPI which the consumer paid. If the big finance companies saw this happening, they would not be able to do anything about it, simply because they were not in the position to do so.

#4 Consumers didn't look for better deals

There is also an argument that within the field of personal banking etc., customers are not really interested in finding a better deal and swapping providers etc.

This is because, for a long time, customers have assumed that loyalty to a bank or lender will be repaid. Unfortunately, this was not the case.

What this meant was that there was little pressure on banks to improve their services or up their game. In essence, they could charge what they wanted for PPI because consumers were placing little pressure on them by looking to a competitor to provide a better deal.

#5 Offsetting

Banks and lenders tell us that the profit margins on loans and credit cards etc. are low but with the high profits connected to sales of PPI, they saw a chance to give their profits a significant boost.

In other words, there was very little pressure on banks and lenders to change their ways, hence they continued to mis-sell PPI.

Isn't it time you claimed your PPI compensation?

Unwilling to Complain – Did Our Politeness Help Fuel the PPI Mis-Selling Scandal?

Decades ago, people did not use banks very much. The economy was a cash one. People were paid in cash and goods were paid for in cash.

Credit and loans were unheard of. Banks were used for savings and investments, rather than the everyday banking we are accustomed to.

But times changed and rather than a weekly pay packet, employers began to pay a monthly salary directly into employee bank accounts.

Soon it became the norm that everyone had a bank account. Technology changed the face of banking to make it what it is today.

We move money between accounts via secure online banking portals, and we can transfer money worldwide with a click of a mouse.

But there was a problem with this. We trusted the banks.

On one hand, this is no bad thing but on the other, it possibly contributed to the fertile breeding ground for the mis-selling scandal that we now know as the PPI mis-selling debacle.

Lack of complaints

Consumer organisations have noted that at times in the selling process, there was a 'lack of pressure'. In other words, there was no one person or company, organisation etc. calling in to question the methods or messages banks were using to sell PPI (and other products and packages too).

In some respects, this lack of complaining from consumers could be because they didn't know that what was happening was wrong.

But the whole compensation process was kick started by a consumer complaining that he didn't want or need the PPI insurance the bank was telling him he had to buy. This one complaint back from the early 1990s started the ball rolling.

As the PPI compensation process is ongoing, consumer organisations have made some eye-opening discoveries about why it happened in the first place -

  • No competition - there was no insurance policy similar to PPI so banks and lenders could charge what they want as consumer had very little else to compare it with
  • No challenge - banks seemed to have the ability to do what they wanted when they wanted and how they wanted. The banking regulator at the time had no power to force through changes. It relied on banks agreeing with it and implementing a change of their own accord.
  • No accountability - lack of complaints, lack of real power to force change meant that there was little accountability in the system. Banks didn't feel they had to tell their customers that they were making 87% profit on selling them an insurance policy they really didn't need…

Complain NOW!

Making a claim for PPI compensation is your way of adding your voice to the thousands of other complaints about PPI and the way in which the banking industry treated its customers.

Make your stand today and start claiming your PPI compensation.

PPI – WHAT to Look for and Where to Find It

With news circulating that a PPI deadline of August 2019 is looking to stand firm, any day now, a promotional campaign is expected to hit our screens, printed media and social media too.

This promotional campaign will set out key mis-selling features, as well as the how and why the mis-selling of PPI affects YOU!

Unfortunately, too many people still think that the PPI mis-selling scandal applies to everyone else but them.

But PPI WAS mis-sold to millions of people all over the UK, including you.

Don't remember buying PPI?

The likelihood is, you may not recall buying PPI and that was because of the way it was sold in some cases. It was added to many people's accounts without them knowing about it, in many cases or the letter or phone call you received from your bank or lender told you what a great idea it was, what a great service they were offering you and so on.

The key point is this: check ALL your accounts, even if you don't think you have PPI because it may have been added at some point in the past.

WHAT to Look For

PPI is an insurance policy that promises to carry on payments on your loan etc. if you are unable to do so. This may be because you are too ill to work, or you were made redundant etc.

It may be called PPI or it may be called something else. For example, some high street stores offer credit facilities and do so by providing you with a card and a credit limit. You can buy up to certain amount worth of goods by paying for them on your store card. Interest can be low or even 0% in the early months to attract users.

To 'protect' your card and payments, the store card could have some with some kind of insurance - this is PPI. It may not be called PPI, but it is PPI.

Look for anything that promises to make repayments on your account if you are unable to due to illness, unemployment, redundancy or any other kind of crisis that affects your income.

WHERE to Look for It

PPI was not just added to loans…

  • Unsecured loans- also known as personal loans, PPI was commonly added to these kind of credit accounts
  • Secured loans- usually money loaned against a high value asset such as property or in some cases, your car, PPI was commonly part of this package too
  • Credit cards- added after you opened you credit card account or added at a later date without your knowledge, it may not be called PPI but any insurance product on your credit card is a form of PPI and could have been mis-sold
  • Store cards- similar to credit cards
  • Catalogues- PPI was also common on catalogues and could have significantly bumped up your monthly payments.

Need help claiming your money back? Call Payment Protection Scotland for expert help.

PPI and How It Changed the Face of British Banking

The PPI mis-selling scandal has reverberations far and wide. For many thousands of customers, this has meant claiming back thousands of pounds in compensation.

But it also changed how banks are 'seen' by their customers and has changed how, when and why interactions could take place between customers and their bank.

Many people trusted their bank or lender implicitly to act in a way that was professional, caring and with their best interests at heart.

The shock of PPI mis-selling for many customers lay in that their bank, a company they have done business with for decades, could be so disingenuous about selling them an insurance policy.

There have been changes which many people believe will go a long way in preventing another mi-selling scandal. In fact, banks can little afford to have anything of this kind happen again.

What has changed?

  • NOT sold at the time of loan

When you buy a loan, you do not have to buy anything else other than the loan. A bank may insist with a mortgage that you have some kind of insurance to protect repayments, you do NOT have to buy their product. You can shop around for the best deal, buy and then show the bank the product you have bought.

  • Advised sale needs to be in writing

If a sales representative for a bank or lender recommends or advises you to buy a product, they have to tell you in writing why they recommend this product.

  • Not sell anything else for another 7 days

Once you have bought a loan or other financial product, the bank should not contact you for at least 7 days after you bought the loan etc. to sell you anything else, such as insurance.

  • Sales patter must be clearer

Some people were sure if they were being told or advised to buy the product whereas the bank said that this was not the case. Since the PPI mis-selling scandal, banks and lenders are being told to make sure that customers fully understand what they are being sold and the cost of the product.

  • No single premium PPI policies

As well as no lump-sum PPI policies, banks and lenders also have to tell you how likely you would be to be successful if you made a claim on their PPI policy. This is because less than 15% of claims made against a PPI policy were successful, and incredibly low rate.

They also have to tell you how much commission they are a paying a broker if someone else organises the policy.

Want to claim PPI compensation? Why not call our expert team for a no obligation chat on the best way forward?


PPI Nuisance calls – Will the PPI Deadline Cause Them to Surge?

You may have noticed texts telling you to claim the thousands owed to you in PPI compensation. Or maybe you have received phone calls suggesting you make your claim for PPI compensation now.

Some may have looked part way convincing. For example, it may say something like "we have calculated you are owed £3,621.18p in PPI compensation" and so on.

These texts and phone calls relating to PPI have been a nuisance since the PPI scandal broke. They are from claim management companies who say they have your best interests at heart.

Professional and reputable claim management companies have a more responsible attitude to promoting their claim management services.

But back in March 2017, the media on hearing the announcement of a PPI deadline for August 2019, told us that these scam calls and irritating texts would explode and we would all face the nuisance that are PPI calls.

But has this happened?

The PPI Deadline Promotional Campaign

Alongside a deadline of 29th August 2019, the Financial Conduct Authority (FCA) has determined that in order for everyone to have the opportunity to claim their money back, there needs to be a massive promotional campaign.

This campaign is reputed to be costing £42 million, a bill being paid for by the banks and lenders responsible for the PPI mis-selling debacle.

There are top advertising agencies involved and we believe that the ideas are taking shape with the campaign expected to start soon.

This is because once the deadline is 'officially' announce, customers are being given two years within which to lodge their complaints.

As yet, there has been no significant surge in nuisance calls and texts but once the campaigns starts, it could bring confusion.

How Will the Deadline Work?

You can lodge you PPI complaint about mis-selling anytime between now and 29th August 2019. After this date, no new cases relating to PPI complaints that pre-date 2017 will be looked into.

In other words, they are drawing a line under historic mis-selling of PPI and any new cases that could possibly have happened in these last few months.

How Does the PPI August 2019 Deadline Effect Payment Protection Scotland Services?

As yet, it doesn't in relation to PPI compensation claims. We will continue to accept and pursue genuine PPI compensation claims we are confident the policy or policies were mis-sold to you.

We will continue to accept and lodge new PPI complaints up until the deadline of August 2019. After that date, we will no longer be able to lodge new complaints with banks and lenders.

Don't Miss Out!

Lodge your complaint about PPI compensation TODAY! Don't wait for the deadline.

How Were PPI Premiums Calculated on Catalogue Acounts?

This question and many others, answered by our expert team!

I have read that PPI was also a feature of catalogue accounts. I had at least two catalogues accounts but how do I go about making a claim for compensation, or even finding out if I have PPI?

Credit facilities on catalogues, as with store cards, were unwritten by a major financial company or bank. Who this is, isn't always immediately obvious as they used different names for credit facilities on different catalogues.

The first step is to check if you have any paperwork still relevant to those catalogue accounts. If you do, you may be able to see who provided the credit facilities and if there is PPI on the account.

Will I get a lot of money back on my catalogue PPI compensation claim?

This depends on a number of factors. It depends on how long you had the catalogue account for, how many catalogues accounts you had but also how much was outstanding each month on your account.

In most cases, PPI on catalogue accounts was calculated as a percentage of the amount outstanding, similar to how it was calculated on credit cards. This meant that the PPI premium was not a fixed amount each month.

You may find that if you used your catalogue on a frequent basis to purchase items, that the PPI compensation due could run into thousands.

Who do I make a claim against if the catalogue no longer exists?

Like all services and products, companies change them from time to time and so the catalogue you bought from several years ago no longer existsunder that name.

Catalogue companies were the broker, if you like, in the offering and management of your account. It was underwritten by major banks and lenders. There are very few, if any, independent financial companies in the UK and so eventually, through the chain, the account will eventually end up at one of the major British banks.

Part of our service is to help find who was responsible for your credit account on your catalogue. For that, we need as much information as possible.

I'm not sure I had PPI on my catalogue account. How do I check?

You can call the catalogue company and ask who is handling their PPI compensation claims and how you go about making a claim. They should give you this information.

If not, you can always call our team here at Payment Protection Scotland. We have helped thousands of customers to successfully claim back their money from mis-sold PPI on catalogues.

Exercise Your Consumer Rights – Claim PPI Compensation

Payment protection insurance - commonly known as PPI - is a financial product that will be forever known as the biggest mis-selling scandal ever to have rocked the British financial industry.

Within the UK, 24 financial firms are responsible for 96% of the claims with a variety of banks finding they have had to add considerable amounts of money to their PPI compensation pots - the Royal Bank of Scotland, for example, has added a reported £450million, while Barclays has added even more to its PPI compensation fund.

And why are banks adding funds to their compensation pots? Because customers are exercising their rights and asking for their money back - and you could be next in line to claim your money back with our help.

What is 'mis-selling'?

It is a phrase linked with PPI but what does it actually mean?

PPI was mis-sold for a variety of reasons but essentially, it means that it is not suitable for many people.

Customers who, for example, were;

  • self-employed or
  • retired or
  • suffering from pre-existing medical conditions

and were sold PPIwould not have been able to make a claimunder the terms and conditions of the PPI policy as they were not covered.

And some of these terms and conditions also present many mis-selling issues - significant exclusions, such as pre-existing medical conditions were not fully explained to customers. Thus, when some customers thought they were covered, they were not.

Make sure you exercise your consumer rights

PPI was mis-sold on a large number of products to thousands of customers. If you have had a loan, credit card, mortgage, car finance, catalogue account with any company - or any combination of any of these products -  contact Payment Protection Scotland.

How to claim your money back

You need to;

  1. Look through all your accounts on which you borrowed money- this means checking catalogue accounts, credit cards, loans and more. And check carefully as PPI was not always called PPI and neither will premiums always be obvious.
  2. If you find PPI, make a claim-even if you are unsure how or why it was mis-sold to you. The likelihood is it was mis-sold and you will be due to all your premiums back, and interest too.

Who we are

As a claims management company specialising in PPI compensation claims, we have helped thousands of customers to successfully exercise their consumer rights - and claim their money back.

We charge a fee for our service but offer our expertise on a no win, no fee basis. Interested? Call us!

Claim the PPI Compensation You Are Entitled to!

Since 2011, there have been a large number of articles in the media highlighting the mis-selling of payment protection insurance or PPI on loans, store cards, credit cards and mortgages.

We were all being encouraged to look at our credit agreements to see if PPI was part of the contract.

40% of People Have Done Just That

Nearly seven years to the date the first few PPI claims were made, around 40% of people entitled to make a claim for PPI compensation have done so.

That leaves 60% of customers with a claim yet to make one - are you one of them?

Not Always Easy to Spot

Looking at your credit agreement paperwork, you may find in difficult to see if you have been or are paying payment protection insurance because different lenders have different names for payment protection insurance.

Some store or credit cards, for example, called their PPI products 'card care'. Repayment protection insurance was also an oft-used name for payment protection insurance.

Mortgage lenders also had a variety of names for these products.

On looking at your credit agreement documentation, if you see a payment for repayment protection insurance you may have a form of PPI on the account.

What PPI Promised…

The basic idea behind payment protection insurance was that in the event you were unable to keep up repayments on your loan or credit card due to illness and not being able to work and so on, the PPI policy should kick in, and make the repayments for you.

But not all customers needed PPI. For example, some customers already had payment protection insurance policies in place, and didn't need another policy.

Some PPI policies were also limited in the cover, whilst others had a waiting time of three months or more before a claim could be made. All these limitations and instances of 'no cover' in the terms and conditions of PPI were not made obvious to the customer.

In some cases, some people were not asked or made aware that they had this type of payment protection insurance on their loan!

This mass mis-selling of payment protection insurance to customers across the UK now mean that customers are now claiming back money owed to them 'en masse'. Banks and other financial institutions have put aside an estimated billions of pounds to cover PPI compensation claims.

How we Help

We make sure that you have a claim for mis-sold PPI. We will then take your case forward, getting back all of your money. Why not talk to our expert team today?