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Archive for tag: PPI

The Highs and Lows of the PPI Scandal

The PPI mis-selling scandal is set to come to an end very soon with the August 2019 PPI deadline looming ever closer. Over the past eight years of compensation claims, there have been many highs and lows, not including those that happened from the mid-1990s onwards when the PPI scandal was spotted.

Elevator

The Highs - PPI generates huge profits for banks and healthy commission payments for staff

Let us take you back to a world of banking that looks very different from the banking world we have today.

Loans, credit cards and mortgages were freely available. These products were (and still are) the 'bread and butter' of banks and lenders across the UK. Payment Protection Insurance (PPI) was an 'add-on' product that sales advisors sold to thousands of customers when they took out a loan or other credit facility.

Sales staff enjoyeduncapped commissionwith some bank sales representative earning a staggering £80 or more per case.

And, it was not a short-term thing. This PPI selling had been going on since the mid-1990s, continuing unhindered for many years. The PPI market was estimated to be worth billions to the banks who were making huge profits.

By 2009, there were well over 20 million PPI policies in the UK.

The Lows

The first low was when someone complained. This complaint started an investigation and from this and the many reviews and super-complaints that followed, the banks were told they must repay every penny of these PPI policies.

But the problem isn't the product but the way in which it was sold.Customers were sold the product when they didn't want or need it. And, for many customers, they wouldn't have been able to make a claim on the PPI policy as they weren't covered by it. In other words, the PPI policy didn't fit their needs.

And customers started to claim back PPI compensation in their thousands.

A further low

The banks decided to fight back as obviously, they didn't want this scandal to hit their profits. They asked for a final Judicial Review. The review went against them but by this point in the journey, there was a huge backlog in the number of PPI cases waiting to be assessed by the banks.

Another low

In late 2012, banks had paid far more in PPI compensation than they thought they would have to. Major UK banks set aside more money - in the case of the Lloyds Banking Group they recently added a further £14 million to their compensation pot.

Are you sure that you don't have an eligible PPI claim? If you've had a loan, mortgage or credit card in this last 10 years or so, then you need to check statements and documents.

If you have PPI, then contact Payment Protection Scotland and see what we can do for you.

 

PPI and Commissions Based Sales

As many customers are now finding out, they were mis-sold Payment Protection Insurance on their loan, mortgage, store card, catalogue account, car finance and credit cards. Whilst customers make compensation claims to reclaim premiums paid AND interest, there could soon be more compensation coming your way.

Abc

Selling commission-based products has been an issue for many people all along, and the ruling in the Plevin case has now been interpreted. What this means is that if the commission paid on the sale of PPI was higher than 50% and you were not told, you should be compensated.

How did mis-selling of PPI happening in the first place?

Profits and commission.

As a sales advisor for a bank, an employee would often receive an incentive payment if they sold various products.

This in itself is not a bad idea… if you need the product.

For some people with no savings and possibly employment that may be under threat, taking out a PPI policy or another insurance policy of this kind would be a sensible move.

Did you know...?
It was found that some financial institutions operated a 'first past the post' system in which the first 21 members of sale staff to reach a target would receive a £10,000 bonus

Where it went wrong with the selling of PPI was that advisors received large amounts of commission for selling it, meaning that the banks made staggering profits.

In fact, it has been estimated that at the height of the mis-selling, some banks were making up to 80% of their profits from PPI sales (Source: BBC money)

What measures are being put in place to stop this happening again?

The Financial Conduct Authority is clamping down on commission based sales within the financial industry.

According to one report, bank staff still feels 'under pressure' to sell products. Whilst commission- based selling isn't a problem - after all, it acts as an incentive - it can cloud the judgement of an advisor to sell products to people that don't really need it.

Did you know...?
Sales staff at one financial firm could earn as much as £10,00 on top of their earning with commission-based selling of PPI.

If you have a loan, credit card or mortgage that you have taken out in the last 6 years or so, then it would be worth checking your documentation to see if you have PPI.

If you think you were unfairly sold PPI, you should claim PPI compensation.

Why not call out team for a no obligation chat?

PPI Mis-Selling – Letters from Lenders

Two years after PPI compensation payments started, lenders and banks were told to send letters to their customers to highlight the fact that they may be entitled to make a compensation claim for mis-sold Payment Protection Insurance (PPI) on loans, credit card or mortgages. Today, eight years on since the first clutch of PPI compensation claims, banks and lenders are still being urged to contact customers to make sure that as many of their customers receive the money back that they are entitled too. But how do you know this is a genuine letter and not a 'marketing letter'?

Writing

Letter guidelines

The then Financial Services Authority - now the Financial Conduct Authority - issued a set of guidelines for the PPI letters to ensure that potential claimants did not dismiss it as yet another marketing letter, a common vehicle for some less than scrupulous claim management companies used.

Banks were heavily criticised by the leading consumer group 'Which?' for making the PPI mess worse by ineffectively communicating with customers.

Advertising activities, such as unsolicited text messages or SPAM messages, have made many people wary of anything that mentions PPI or suggests they could be entitled to claim huge amounts of money.

Therefore, these letters had to:

  • Be free from marketing material as well as financial jargon
  • State clearly the letter contains important information and should be read carefully
  • Be clear that the customer may have been mis-sold PPI type policy
  • Inform the customer that as a result, they may have suffered 'financial loss' and may be entitled to compensation (also termed a 'redress')
  • Clearly emphasise that there is atime limitin making a compensation claim from the date the customer receives the letter and that they need to carefully consider making a claim…

… And this means that if you received a letter back, the time limit is ticking down now! Have you made your claim for PPI compensation?

What can you do NOW?

  • Don't wait for the time limit nor the PPI deadline of August 2019 - Check your account, statements, documentation etc. It may take time, especially if you have several credit accounts but it is worth investing the time NOW. If you see some form of PPI (it may have a different name), consider whether you agreed to this policy or, read the terms and conditions of the policy: are you covered?
  • You can contact your bank and/or lenders yourself or you can use a claims management company like Payment Protection Scotland.
  • We offer an effective service to help people make a PPI compensation claims. We charge a fee for this service, payable on successful completion of your compensation claim.

As an established PPI compensation claim specialist company, we have an enviable reputation for making successful claims on behalf of our customers.

If you decide to continue with us, then all you need to do is sign a few forms, sit back let us to do the chasing on your behalf! Why not contact us, and see what Payment Protection Scotland could do for you?

PPI, Spam Texts, Your Privacy and the PPI Deadline

The payment protection insurance (PPI) mis-selling fiasco has led to several annoying things to happen - unsolicited phone calls and annoying spam texts. You know the type, because you have probably received one or two, maybe even more over the years that the PPI compensation saga has been running. You may have received a text that claimed "Our records show you are entitled to £4,658 in PPI compensation! Reply INFO or stop". Or one that says "your name is on a list to receive PPI". It's easy to be caught out but these texts are nothing more than spam, a sad reflection of the PPI mis-selling scandal.

Spam

The Mis-selling of PPI

PPI was widely mis-sold to customers and has become the biggest mis-sold product ever in UK financial industry history. The scandal of mis-selling - usually a commission based product for customer advisers - has shaken the financial sector to its core, with no bank or lender being untouched by the saga.

As a result of the PPI mis-selling scandal, another industry was created - the claim management company (CMC). For many critics, the claim management company is not a welcome development. To others, they are welcome and are happy to pay a fee for professional help in claiming PPI compensation.

The Key Term - 'Professional'

There are many CMCs who do NOT send unsolicited or spam text messages and follow advertising guidelines when connecting with customers and promoting their services to them. However, when you do receive a text about PPI,  bear this important fact in mind:

  • These firms do NOT have access to your personal or financial details so don't be swayed by these text messages that promise you a certain compensation figure. The sender has no idea of your personal circumstances.

Payment Protection Scotland - our pledge

As a professional claim management company, we do not send unsolicited text messages to anyone with false information. All our customers contact us through our website and neither do we make vexatious claims- in other words, if we do not think you have a claim, we will not take your claim any further.

Claim PPI Compensation with Payment Protection Scotland

The idea behind PPI is simple and will remain valid right up to the PPI deadline August 2019 - in the event of you being unable to work due to illness, accident, redundancy or death, this insurance policy should cover your repayments on your loan, mortgage, catalogue accounts or credit card.

Banks and lenders offered this product on specific products but it was mis-sold by banks and lenders to millions of customers. The PPI policy rarely paid out when people needed help.

PPI was not explained fully and was of little, if any benefit, to most customers, such as those retired, self-employed or with pre-existing medical conditions.

Do not be swayed by spam text messages! If you think you have a PPI compensation claim then contact Payment Protection Scotland. We can talk you through the whole process and don't forget, you are under no obligation to continue.

Why are PPI Compensation Awards Different from One Person to Another?

We have all read the headlines and marvelled at some of the large payment protection insurance (PPI) compensation settlements customers have received. But, just why are some of these compensation settlements so high when compared to the average pay out of £2,750?

Light -bulbs

PPI & Credit Cards

Many of the larger PPI compensation pay outs are around PPI policies on credit cards. There are several factors why PPI compensation can reach such large proportions:

TIME - many of the customers who have received five-figure sums in PPI compensation had their credit card over along period of time and therefore, could have been paying out hundreds of pounds each year for the PPI policy.

NUMBER of credit cards - one customer who received a large pay out of over £65,000 hadmore than one credit card and had also had these for a long period of time. These two factors combined meant that the compensation due soon totalled a large amount.

INTEREST - what does significantly boost PPI compensation is the application of interest and how the premium each month was calculated. PPI premiums varied on credit cards as the amount a customer paid in PPI premiums each month depended on the outstanding balance. Hence, if you were up to the card limit and only paid the minimum each month, your monthly premium would be higher than if you paid it off. In this way, one businesswoman with two cards over many years which were often at their limit received over £82,000 in compensation.

Why do credit card providers have such a large slice of the PPI compensation market?

Applications for credit cards were easy forms to fill in back in the economic heyday of the 1980s and 1990s, more so with the advent of easy credit with online applications. Many applicants will not have noticed a small box at the end of the very small print that informed the customer PPI was available on their account.

Our Terms of Services - Clear, Transparent and Easy to Understand

Payment Protection Scotland's 'small print' is not small or hidden. We offer a fully transparent service and our terms and conditions are available on our website. Our friendly customer service advisers will be more than happy to talk through the no win, no fee terms of service we offer.

We are a claims management company that specialises in making PPI claims on behalf of customers. We will assess your case and suggest the best way forward.

Contact us today for further information.

Are You Sure You Don’t Have A PPI Compensation Claim?

The announcement of a 2019 PPI compensation deadline announced a few short months ago, the debate around PPI has been re-ignited.

Unsure

What dominates the headlines this time is the fact that less than half of those entitled to make a claim for PPI compensation have done so.

So, check again - are you really sure you don't have a claim for PPI compensation?

Have you had a loan, credit card, car finance, catalogue account, store card or opened a newmortgage at any point from the mid-1990s onwards

The likelihood is that most people have some form of credit facility with a major bank or lender in Scotland as well across the UK.

Banks make their profits by lending money to customers and they made gigantic profits on the back of selling PPI to customers. If you knew the majority of the cost of PPI was profit for the bank, would you have still bought and at the price they were charging?

Claiming PPI compensation is NOT a complicated process (in most cases)

If you find you have PPI on your accounts, you may have a claim for compensation.

However, the onus has been placed on the customer to prove they were mis-sold PPI, the four top mis-selling reasons being;

  1. You were unaware you had bought PPI - in some cases, the product was automatically added to the account without your permission.
  2. You were told it was compulsory - PPI, along with many other types of insurances of this nature, is optional. Covering your income is not a bad idea but you need not have bought the bank or lender's own product. Some customers already had insurance cover in place so didn't need an additional insurance product.
  3. Some customers were led to believe that they would be more like to be accepted for a loan or credit card etc. if they took out the PPI policy - this is unfair selling practice and simply not allowed. Credit is based on your credit rating, nothing else.
  4. You were retired or self-employed at the time or had a pre-existing medical condition - this relates specifically to the terms and conditions of the PPI policy. Many customers would not have been covered in many cases and, according to a variety of complaints upheld by the Financial Services Ombudsman (FSO), they would not have taken out the policy of these terms and conditions had been fully explained to them.

I have no paperwork or policy numbers, can I still claim PPI compensation before the 2019 deadline?

It may still be possible to make a claim. You can pursue this yourself or you can engage the services of a specialist claims management company like Payment Protection Scotland.

We charge a fee for our service which we will clearly explain to you if you decide to proceed. This is a flat fee, although we charge on a no win, no fee basis.

Contact us today, to talk to our friendly team about making your PPI compensation claim today.

PPI – An Exhausted Product or One That Will Fight to Live Another Day?

The scandal surrounding the mis-selling of payment protection insurance (PPI) cannot be avoided, more so now that the August 2019 deadline has been announced.

Exhausted

It seems that on a regular basis, articles appear in newspapers and on the web about the mis-selling of this insurance product. Many people have already claimed compensation but many more are yet to do so - are you one of them?

PPI is still a genuine product but, like all insurance products you need to be sure that the policy provides the cover you need.

What is PPI?

PPI is designed to cover the payments on your debts - such as loans, mortgages, credit cards etc. - should you be unable to work due to illness, accident or redundancy. The policy will make repayments on the product it covers but for a limited time and dependent on which company is providing your cover. In some cases, PPI payment cover lasted for 12 months, whilst other policies stretched to 24 months.

What PPI does not cover

It is suggested as with all insurance products, that you examine in detail what is and what is not covered.

In most cases, a run-of-the-mill PPI policy will not cover:

  • The first 90 days or 12 weeks after you have stopped work - you will need to make any payments on the loan etc. up to this point. Can you afford to do that with less or no income?
  • Various illnesses are NOT covered - check these exclusions carefully, as they may include illnesses you could be 'prone' to.
  • Pre-existing conditions or illnesses you already know about and this means the most likely reason why you cannot work is not covered.
  • PPI will not provide cover for those who are retired but the bank still sold it to you…

Do you NEED PPI?

PPI can be useful in certain circumstances, e.g. you have a credit card, loan or mortgage and you want or need an insurance policy that will cover your repayments on one of these products.

However, considering the numerous exclusions and specific cover offered by PPI, you should check carefully if the PPI policy is providing an acceptable level of cover.

Some people have benefits with their employer that makes PPI surplus to requirements. These benefits may include;

  • A comprehensive employee benefits packages such as sick pay being your full salary for 6 months.
  • You may have savings which would, in the short term, be enough to make any payments
  • Your partner's income would be sufficient to make payments on your mortgage etc.

Were you mis-sold PPI?

PPI can be, for some, a useful product.

However, the wholesale mis-selling of the insurance has given it a bad name as an insurance policy, with many customers questioning its worth.

Payment Protection Scotland is a specialist claims management company, offering a PPI claims service to customers from across Scotland.

With no upfront fees, you can be confident in the service that we offer. Contact us TODAY!

How to Claim PPI Compensation Before the Deadline

Even though PPI compensation has been around for years, it is about to end. The PPI deadline is only a few weeks away and that means people could miss out if they don't know how to claim PPI compensation.

We recap on what PPI is and how to go about claiming PPI compensation before the August 2019 deadline.

Deadline _clock

What is PPI?

PPI a specific type of insurance product that was sold alongside credit agreements, such as personal loans, credit cards, hire purchase agreements, car finance, catalogue accounts, store cards and many other kinds of credit.

It was originally designed to protect you, the policyholder, in the event that you were unable to make your monthly repayments on the loan. But, concerns were raised about how it was being sold and to whom, as well as its cost.

Why has the mis-selling saga lasted so long?

This is to do with the number of policies sold and the number of people duped into buying the policy by their bank or lender.

It is also because many people were mis-sold more than one PPI policy. Another reason is that the banks and lenders dragged their feet at the start of the process, hoping that the problem would disappear.

For many of the customers involved, they don't realise they have a claim for compensation, as they didn't realise they had been 'sold' it in the first place.

It didn't. 34 million PPI policies were thought to have been sold in the UK, affecting millions of customers.

The mis-selling problem

The way in which the PPI policy was presented to you at the time it was sold may be an indication of whether you were mis-sold it or not.

In some cases, the debate as to whether you were mis-sold the product or not can be complex. Thus, it is important that if you are unsure, you seek advice.

However, in the main, many customers were…

  • Told the purchase of the PPI policy was compulsory - it is NOT
  • NOT told the limitations, terms, conditions and exclusions of the policy - there were many and that means you probably weren't covered
  • NOT told of their eligibility to claim via this policy - in other words, many people were unable to claim on the policy as they simply were not eligible. Would you have bought it, knowing this?

But perhaps the worst-case scenario was when some customers, clearly making an emotive decision to borrow money were told that they were more likely to be accepted for finance if they took out the policy.

Claim YOUR money back

Don't let the bank get away with it!

Make sure that you check all the paperwork NOW for signs of PPI - should it be on there? Does it cover you for repayments on the loan etc.? Are you eligible to claim?

Why not let Payment Protection Scotland help you claim your money back?

MORE PPI Questions, MORE Answers

Even though the PPI mis-selling debacle has been around for some time, there are still many questions that can remain unanswered. Take a look at some of the questions our team are frequently asked.

Mindmap

 

#1 How long does a PPI compensation claim take?

Once we send the letter of complaint on your behalf, the lender will typically take between eight and 12 weeks to investigate your claim and reach a decision.

What can add to this time is when we need to trace accounts and lenders on your behalf. We do this as quickly as possible so that your letter of complaints can be submitted to a lender or lenders, and your compensation paid.

However, if you decide to raise an appeal with the Financial Ombudsman if the bank refuse your claim, this can take many months. This is because the ombudsman is swamped with claims relating to PPI compensation, as well as cases concerning other financial products.

#2 How far back can a claim go?

PPI was mis-sold from the 1990s onwards and despite objections raised in the early to mid-2000s, it was a financial product that was still being sold to people who would not have been covered by it. The selling of PPI didn't stop until 2010.

There is no limit on how far back your claim can go which is why we encourage anyone who thinks they may have a claim to call us.

#3 What if I have no paperwork?

This is common problem for many people, but it is one that we can help with.

You will need to call our team who will talk you through the process. As long as know who the lenders were, we can issue a Subject Access Request instructing your lender to send us the information we need to assess your claim.

Financial companies must keep records of transactions etc. for the past six years. It may be that if your account was closed more than six years ago, they may not have a case to send us. However, we have helped customers with claims dating back 20 years.

It will take longer and take more perseverance on your part and ours, but we will do all we can to help you make a claim as getting your money back is important.

#4 I have an IVA. Can you still help me?

We can work alongside you to make a claim but you will also need to be up to date with your payments under the Individual Voluntary Agreement and should also consult your debt advisor before making a claim.

At Payment Protection Scotland, we have already successfully claimed back PPI compensation for thousands of customers. Are you next?

PPI Claims are Being Cut Off This Summer!

The announcement by the Financial Conduct Authority that the deadline for PPI claims is set for 29th August 2019 means that the writing is on the wall for PPI compensation claims.

Summer

By the last Thursday in August 2019, anyone wishing to make a claim for PPI compensation will have to lodge their complaint with their banks or lender. After this date, there will be no new PPI cases accepted unless you were mis-sold PPI after August 2017.

Do you want to Claim PPI Compensation?

Thus far, over £30 billion has been paid to customers who had PPI mis-sold to them by banks and lenders. Even though you may be thinking the deadline is months away, there are many reasons not to wait around for it to arrive.

The PPI August 2019 is FIRM

Unless something explosive happens in the next few months, the deadline for PPI compensation claims of August 2019 will hold firm.

However, there have been so many changes and issues in the last few years relating to PPI, never rule out any challenges and issues!

There could be a bottleneck

The FCA are spending £42 million - a bill paid by the banks - on an all-encompassing promotional campaign that they say will reach everyone in society.

Even though they say that there shouldn't be a bottleneck, some critics argue that everyone with a claim does so in the next two years, the compensation process could take years to unravel.

You could be entitled to more money than you think

There is a new category of mis-selling called 'Plevin', named after the customer who brought the case.

This new category within the PPI compensation process stipulates that if more than 50% of the PPI's cost was paid in commission to a lender or broker, you are entitled to this money back.

This ruling comes into effect from August 29th this year and thus, some people who have already claimed may get more back. For this to count, however, your account will need to have been active (i.e. made a payment on it) from some point in 2008.

It is a staggering fact but Martin Lewis of MoneySavingSupermarket.com says that as much as 67% of what customers paid for PPI was pocketed by the banks.

If you had known the commission was so high, wouldn't you have queried the cost?

Even if you are positive you didn't buy PPI… CHECK AGAIN!

This is your money and it cannot be emphasised enough that it was a policy that was mis-sold to millions of people. If you had a credit card, store card, personal loan, mortgage or any kind of account from a bank, lender or through a high-street retailer, you could be entitled to claim thousands of pounds back.

The average PPI claim is still standing at £3,000 per person. You could claim more - contact the team at Payment Protection Scotland.