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What Changes Did the Mis-selling of PPI Bring?

Payment protection insurance (PPI) was mis sold to thousands of customers. Compensation is now rolling freely to most customers after a long and drawn out legal battle. However, some customers still face an uphill struggle to get their money back.

Changes

With a PPI deadline of August 2019 on the horizon, many are asking the question 'could it happen again?'. What have we learnt from the PPI debacle?

Advised Sales

At one time, customers were advised by the bank's representative to buy a PPI policy. But there was a problem with this -  the advice the customer received was not written down.

If any bank, lender or building society recommends or advises a product to you alongside the main loan or other product, they must tell you why and do so clearly.

What's changed?

If you are sold any product, including PPI, then you must be given a written statement, outlining the reasons why the policy is the right one for you.

Payout rates

Another issue with PPI that many customers were unaware of was the low number of successful claims made against PPI policies.

Car insurance, for example, has a payout rate of over 80% - in other words, 8 out of 10 claims made on car insurance policies are successful.

PPI had a payout rate of just 15%. Making a claim also took a long time and was a complicated process.

What's changed?

Banks and building societies, if they still offer PPI for sale, must publish their payout rates on an annual basis. This information must also be given to customers in order to make an informed decision.

Giving a choice

Many banks and lenders gave the impression to customers that the purchase of PPI alongside their loan or other product was compulsory, and that their own brand of PPI was the only one available for purchase.

Just like any other insurance, you have the right to shop around and get a better deal. Many customers, if they had been encouraged to do this would have found a much better deal on a better product.

What's changed?

Customers are to be informed that they can shop around for PPI insurance. Income protection insurances are considered better value than PPI.

Bombarding customers

Borrowing money is an emotive purchase. In other words to re-mortgage, your property means making the changes to your family home it needs.

PPI, along with many other products were sold to customers at the same time, with many believing that they stood a better chance of gaining the money they needed by buying these products.

What's changed?

Customers are not to be bombarded at the time they buy the loan or mortgage etc. with any additional products being offered to customers at least seven days later, NOT at the time.

Could it happen again? No, says the Financial Conduct Authority.

The Financial Conduct Authority replaced the Financial Services Authority some years ago. The FCA has the teeth it needs to force banks and lenders to comply - and they are clear that any customer due compensation should get it.

Call Payment Protection Scotland now to get your claim started!

Can Claiming PPI Compensation be Made ‘Easier’?

Depending on what you read, there are various stories that imply claiming PPI compensation can be hard. Customers talk of facing issues with their bank and well as their refusal to pay out when they clearly have a claim.

Hot -air -balloon

But then…

… there is the Financial Ombudsman Service telling us that the cases being referred to them relating to PPI compensation are becoming 'more complex'.

All this leads you to believe that making a claim for compensation after being mis-sold PPI is hard, a complex journey that takes time and effort. With Payment Protection Scotland on your side, you have no such worries because we do all the hard work for you.

Should I tell the bank how much compensation I am owed? Would that make my PPI compensation clam easier?

As a claim management company specialising in PPI compensation claims, we always check that the PPI settlement offer being made matches our calculations. But, we don't tell the bank or lender what we think they owe you and we do this for many reasons, one of which is the complexity of calculations.

The bank has the responsibility to calculate your PPI compensation,ensuring you receive your premiums back, and fees or costs associated with PPI associated with it, as well as an 8% interest rate.

So no, telling your bank how much you think they owe you is not necessary at the initial stages. If you refer your case to the Ombudsman, you may want to show your calculations of what is owed to you etc.

Is it easier if I show the bank evidence that I had PPI?

In some ways, showing the bank or lender a photocopy of your PPI policy or providing them with policy numbers can cut down on time - they won't have to trawl their archives etc. to find out if you have PPI or not.

However, proof you have a PPI policy is not proof alone that it was mis-sold to you.

Shall I tell them why it was mis-sold to me? Will that hurry along my PPI compensation claim?

Telling your bank clearly why you believe that the policy was mis-sold to you is an essential part of any compensation claim.

There are many reasons why the policy could have been mis-sold to you but many customers struggle to put that into words, especially when the mis-sale was for 'soft reasons' e.g. the feeling that unless you bought it, your application wouldn't be successful or the feeling that the whole thing came as a package but no one said it was or it wasn't…

Payment Protection Scotland can help you claim your money back. Talk to our expert team right now!

Claiming PPI Compensation – Is it Lot of Effort for a Small Reward?

Jenny decided to apply for PPI compensation after she saw it was on her credit card account. She had to fill in form after form, as well as talk to various people at the bank. After all that, she got £84 back.

Claimform

Is it really worth all the hassle to claim PPI compensation for such a small amount?

There are many things that put people off making a compensation claim for mis-sold payment protection insurance. One reason is the perceived 'hassle' of making a claim.

They read stories online or in newspaper that talk of customers filling in many forms, talking to bank representatives and even taking their case to the Financial Ombudsman Service only to find that when compensation is awarded, it was a lot less than they thought.

There are many factors that contribute to the total amount you receive back but irrespective of whether it is a few pounds or thousands of pounds you are due in compensation, making a claim is important because…

… It Is YOUR Money!

Let's consider the case of someone robbing someone else of cash in their purse. You are sat in a café when someone reaches forward, takes your purse or wallet and takes cash out of it. How would you feel?

Would it feel just as bad if they took £10 or £1,000? Now consider if the person doing it was known to you. And they knew that you didn't have a lot of money or that you struggle from month to month at the moment. How does it feel now?

This is how banks and lenders acted toward their customers. On one hand, your bank professed to know you and have your best interests at heart and yet, they sold you a policy that they knew you wouldn't be able to make a claim on.

Now, how you do you feel? Does it matter if it is £50 or £50,000?

… It is a Form of Mass Protest!

Not all of us are political animals but by joining in the PPI compensation 'movement', you along with thousands of other customers are taking a stand against the banks and lenders.

For too long, the banks got away with behaviour that was unsavoury and broke fair competition and selling rules. They carried on selling PPI not for a few months to a few people but over years and years to millions of people.

So far, the banks have paid out £33 billion in PPI compensation and the figure will continue to rise. It doesn't matterhow muchyou are due back in PPI compensation but the fact ofmaking a claimis more important.

Take a stand - call Payment Protection Scotland today!

WHY Was PPI Mis-Sold to MILLIONS of Customers?

And why was is allowed to continue for so long? Both are big questions with the answers complex. But if you have a PPI policy, the likelihood is, you ARE entitled to compensation. With the PPI compensation deadline only five months away, now is the time to start your claim.

Why

Wrapped Up in The Law

Even though it was spotted back in the mid-1990s by consumer groups and some politicians, the issue of stopping banks from mis-selling PPI policies was hindered, in many respects, by the law.

In the UK, the Government does not 'interfere' with the market by dictating what can be sold and at what price. This 'free market' scenario means that when there are issues with how products and services are being sold, the onus for change must come from the customer.

But thousands upon thousands of customers were blinded by loyalty. Why on earth, they questioned, would their bank, an institution they had been with for decades, sell them a policy that was not only over-priced but of no use to them?

It seemed too ludicrous a question to ask.

But that is exactly what happened.

The Way PPI Was Sold

PPI was sold in different ways but they were all essentially underhand. People often felt they had to buy it so that they got the loan they needed. Or, people were led to believe that it was a fantastic policy that really suited their needs.

But, there were many problems;

  • Joint loan holders were surprised to find that PPI only covered one of them, usually discovering this vital piece of information at a time they needed PPI most.
  • Other people attempted to make a claim but were told they had to wait 6 months or longer before the policy kicked in, a fact they were unaware of.
  • People were not told of the exclusion under the terms and conditions, hence had no idea they couldn't claim if they would no longer work due to a mental health illness or a 'bad back'.
  • PPI was also very expensive, offering very little cover to very few people but cost a lot of money.
  • The process of making a claim was long and complicated. It took over 12 months for a claim to be processed, with the chances of it being a successful claim were very slim - only 15% of claims against PPI policies were successful compared to 80%+ of car insurance claims.

Many Changes

There have been many changes in the wake of the PPI mis-selling scandal. Banks are no longer allowed to sell additional products at the same time a customer buys a loan or credit card etc.

There have been bigger changes too, such as the Financial Conduct Authority, the 'new' regulator of the banks and lenders. It is a body that now has more powers to control bank behaviour and compel them to put things right.

Do You Have a PPI Compensation Claim?

If you have had a loan or credit card from the mid-1990s onwards, the likelihood is you were mis-sold PPI. And that means you have a claim for PPI compensation - call us today!

PPI Mis-Selling Changed The Face Of UK Financial Industry

There is no doubt that the wide-scale mis-selling of payment protection insurance (PPI) in the UK has changed the face of the financial services industry.

Piggy -bank

PPI continues to be a growing issue for consumers. The Financial Services Ombudsman (FOS), receives on average 1,500 new cases each day, a figure that could increase with the PPI compensation deadline only a few months away.

FOS has also said that they are finding PPI cases being referred to them are increasingly complex but are still finding in the case of the consumer in the majority of cases.

PPI is the most complained about financial product that the FOS has ever received.

What to do to claim PPI compensation

Contact your lender

The first step in claiming PPI compensation is to contact your lender. You can either do this yourself or by using an intermediary, such as Payment Protection Scotland.

We specialise in making PPI compensation claims, and nothing else. So you know when you come to us, you are coming to an expert company.

Refer your case to FOS

If your bank or lender refuses your claim for PPI compensation, you may be unhappy with this decision. You can ask FOS to take a look at your case and decide if they think you have a claim for PPI compensation.

If they do, they will tell your bank to compensate you and how much.

They are independent of government and more importantly from the banks and lenders at the centre of the PPI mis-selling scandal.

Takes time

Due to the large number of cases being referred to FOS, you may find that your case will take some months to resolve. The complexity and nature of your claim will also have an impact on how long it will take to resolve.

What the FOS look at when decided whether to uphold the complaint, they will examine two areas:

  • Did your bank or lender give you clear, fair information, that was not misleading in any way about the purchase of PPI?

In other words, your bank or lender should have given you plenty of information, that was clear to understand and highlighted any shortcomings in relation to your circumstances.

  • Did the bank take suitable steps to ensure PPI was suitable for your needs?

A simple example would be anyone that had a pre-existing medical condition should have been made aware of this limitation.

FOS then make a decision based on evidence and in most cases, it has to be said, they do find in favour of the customer.

We can help you not only decide if you have a claim for PPI compensation but also submit your claim.  So why not call Payment Protection Scotland today?

 

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.

Faqs

These customers, within weeks, will have a PPI compensation settlement. They can take the 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…

I have no paperwork and the August 2019 PPI deadline is looming. Does that mean I'll miss out?

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. You can ask your bank or lender for more information - read on to find out how.

How PPI can be 'tested'?

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

  1. 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, as we do to continue with your claim. Banks, lenders and financial institutions have been told that they must no longer charge customers for this service.
  2. 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 if I am in debt? Will I get my PPI settlement?

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 to PPI compensation, 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 the August 2019 PPI deadline only months away, isn't it time you made your PPI compensation claim?

Think You Know Everything About Claiming Back PPI?

Then take our quiz and see how you do!

Everyone has a PPI claim… or do they?

Not true! Claiming compensation for mis-sold payment protection insurance (PPI) is not automaticand just because you have a policy does not mean that you are automatically entitled to your money back. You will need to show that you were mis-sold it.

Puzzle

If you were off work with a bad back, the PPI policy would NOT have covered you

True! There are many exclusions under the terms and conditions of PPI, some of which are better known than others but not at the time that people bought into the policy. In terms of medical exclusions, a 'bad back' were not seen as a reason by which the policyholder could claim on the policy. In terms of more serious spinal injury, you may have been able to.

If you had depression or another mental illness that prevented you from working, you would be able to claim on your PPI policy?

Not true! Again, in the very small print which was easily missed was that some PPI policies did not cover mental health issues or illness. Many people are aware of the debilitating effect that mental health issues have on people and despite all the recent help and raising awareness, the PPI policy was not conducive to helping people in this way.

If it was a joint loan, it was a joint PPI policy?

Again, not true! The PPI policy was usually assigned to one person. If you wanted both of you covered you would pay for an insurance policy each. Many people were not made aware of this at the time of purchase and so when they thought they would be covered by the policy, they found that their claim was invalid.

PPI has a low payout rate?

True! Investigations found that PPI policies paid out in only 15% of cases and when they did, the process was slow and laborious, another criticism levied at the banks and the PPI policies they sold.

Payment Protection Scotland is a leading claim management company

True. We are incredibly popular as a claim management company and successful too. We welcome enquiries from everybody. If you would like more advice on your potential claim, as well as more information on how we can help you get your money back, all you need to do is call us. There is no obligation either!

PPI Mis-Selling Situations

Q. I have PPI on my credit card, which I agreed to buy as I thought it was a good policy to have. I am unsure if I have a claim for PPI compensation. However, at the time I took out the card, I was self-employed although I now operate as a limited company. Do I still have a valid claim?

Chalkboard

Payment protection insurance (PPI) was mis-sold in so many different ways that, even though there are long lists of proven mis-selling reasons, on occasions, it does come down to individual cases and circumstances.

In this case, the successful conclusion to the case would lay in the fact of whether the bank knew you were self-employed at the time they sold you PPI on your credit card. In most cases, the bank or lender would have known, as they would have performed checks to satisfy themselves that you could make repayments on the credit card.

We would need to look closer into the case, as the likelihood is that you would be entitled to PPI compensation and we would be happy to help!

Update: you may also want to consider looking at how much commission was paid to the lender who arranged the policy too. There are cases where more than 50% of the cost of the PPI policy was paid as fees to the broker.

Q. I have a bank account that is permanently overdrawn and I have since discovered that some of the 'fines' I paid were down to the bank taking out PPI premiums. I have read that I may be able to claim back these late fees and fines too - is this a possibility?

This has been in the headlines recently as a claim management company brought it to the attention of the authorities that banks were still picking and choosing which aspects they compensate customers for and which they don't, costs and fees being one of them.

The Financial Conduct Authority and the Financial Ombudsman Service have made it clear that banks and lendersmust compensate customers back to the financial position they would have been in if PPI had not been added to their accounts.

Following this line of thought would suggest that you do have a case for claiming these fees back as part of your PPI compensation claim, however, you would need to discuss this with us in full - why not call us?

Update: banks and lenders are being told they need to take another look at the costs and fees incurred when they added PPI to customer accounts and take the necessary compensatory action.

Q. I have no idea if I was mis-sold PPI! The whole process was a complete blur when it came to the loan that I took out with the bank and I admit, I just signed what was put in front of me…

You are not the only customer who feels this way!

The mis-selling of PPI highlighted that the process of how additional products were sold alongside loans etc. People often felt confused into signing, so much so that the sale of PPI to customers became part of the process, without question. Representatives were no longer pointing out it was a separate product and that it was not compulsory.

The fact you have no idea that you were being sold it, means it was mis-sold and you could have a valid claim for PPI compensation!

Your Easy ‘How to’ Guide for Claiming PPI

The FCA is urging anyone with a PPI claim to make a decision - and that means deciding whether to claim your money back or not. This is our quick, no-nonsense 5-minute guide on how to claim compensation for mis-sold payment protection insurance (PPI) before the August 2019 PPI deadline.

Take -it -easy

Step 1 - Finding out if you have PPI

If you are super-organised when it comes to paperwork and documentation, then this step shouldn't be much trouble. If you have lost paperwork or are unsure what it is you are looking for, then read on.

Knowing a little bit about the history ofhowPPI was mis-sold will help you understand what it is you are looking for.

PPI was sold alongside loans, mortgages, store cards, credit cards personal or unsecured loans etc. Sometimes, customers were told they had to buy but in other cases, it was either part and parcel of the loan or was added after you had taken out the loan. However, it was added to your account(s), if you were told about it, you were probably told what a great product it was.

PPI was sold on the promise that in the event you were not able to make repayments on your loan, the policy would do it for you. This was as a result of a loss of income, such as unemployment or redundancy.

Look for an insurance product that promises to make repayments in the event that you couldn't.

Step 2 - Call Payment Protection Scotland

You don't need to use a specialist claim management company to claim your money back, but many people feel it is the right move for them.

As a leading and reputable company, we have helped thousands of customers to successfully claim PPI compensation. We check that you have a claim and we also check any offers or settlements made by your bank or lender are correct.

The decision about whether you take their offer or not is entirely yours.

Step 3 - If your claim is refuted

Some banks will not honour your claim for PPI compensation. They may say, for example, that it is the most suitable product for you.

You don't have to take their word for it. Either independently or through Payment Protection Scotland, you can log your complaint for PPI compensation with the Financial Ombudsman.

To find out more about how we can help you, call Payment Protection Scotland today. With a 'straightforward' claim, you could be enjoying a windfall within weeks!

How Do You Know if PPI Was Mis-sold To You?

You would think it would be obvious but there is a bewildering array of reasons why PPI may have been mis-sold to you.

Questions

Our PPI mis-selling wheel will help you whether you are starting a new claim or whether you have made a claim and it has been rejected.

Here at Payment Protection Scotland, we aim to help people by offering a professional service, to help them claim their money back.

We know and understand that PPI was sold to millions of customers across the UK, including here in Scotland. We are passionate about helping you claim your money back and we don't want you to miss out.

But if you don't make your claim soon, you could face not having your money back at all. You have until August 2019 to launch a PPI complaint so take a look at our mis-selling wheel top find out more.

Here are some ideas as to why you probably were mis-sold PPI…

Our graphic shows six reasons why PPI may have been mis-sold to you, although there can be other valid reasons too.

Many people, for example, were told that PPI was compulsory - it was NOT! You could have bought a similar type policy from somewhere else, getting a substantially better deal and cover.

A common sales tactic is the second reason on the mis-selling wheel. It was the implication that buying the policy would place your application for a loan or credit card etc., in a much better light. Again, this is not an acceptable selling practice.

Likewise, many people were also not told of the specific exclusions such as not being covered on the grounds of existing health issues or that how you worked also impacted on whether you were covered or not.

And possibly the most misleading one is the fact that for some customers, they were not even told that PPI was added to their accounts and this is why it is so important to claim back PPI compensation from your bank, credit card provider or lender!

Why not get help from Payment Protection Scotland? We are experts in the field of PPI compensation.

Were YOU mis-sold PPI?

  • Were you told it was COMPULSORY?
  • the sales representative IMPLIED it would benefit your application
  • If you did buy it, were you told the cover would NOT last the full term of your loan?
  • Were you told about the health issues and illnesses that would NOT be covered under the policy?
  • Were you unemployed, self-employed or retired at the time you took the policy out?
  • It could have been added without you knowledge or consent...