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Archive for tag: PPI Compensation Scotland

Do I Have a Claim for PPI Compensation?

Possibly one of the biggest and most frequently asked question in the UK, claiming compensation after being mis-sold payment protection insurance (PPI) is something that many people have already done. If you are yet to make a claim, you may be wondering how to go about making a claim or, if you have a claim for PPI compensation…

You were not aware you 'bought' PPI

This can be a tough one because if you don't know you have PPI, how can you possibly make a claim for compensation?

The banks were told by the regulatory authority, the Financial Conduct Authority, to write to their customers, informing them that they have PPI and that they may be entitled to claim their money back.

These letters were sent out from 2013 onwards. If you have received one of these letters inviting you to make a claim for PPI compensation but have no idea why the bank or lender has written to YOU, then you possibly do have PPI and a claim for compensation.

Don't dismiss any letter or email from your bank regarding PPI compensation.

BEWARE some less reputable claim management companies are muddying the waters, by also writing, emailing or texting people telling them they DO have a claim for PPI compensation. They sometimes include an amount of compensation to entice you further. These are 'fishing' texts and are not genuine.

You were over the age of 65 and not working

Many older people were sold PPI on the premise that should financial difficulties hit in retirement, that the payments on their loan, credit card and so on would be met by this amazing financial insurance product.

This is not the case as it was only of use to people aged between 18 and 65 who were employed for more than 16 hours a week.

Working part time when you were sold PPI? You could have a claim for compensation as it could be entirely possible that the policy was not suitable for your needs. In other words, check the small print and you may find it says you must be working 30 hours or more a week.

The loan was a joint one… but your PPI isn't

We have worked with many people who thought that because their loan was in joint names, their PPI policy would be too. After all, it would make sense that if the loan was based on your combined income, that the policy would cover you both.

Not so. The majority of PPI policies covered only one person. But this was not always made clear and neither was it made clear who was covered by the policy.

Do you have a claim?

These are just a few of the reasons why PPI could have been mis-sold to you. To find out wha other mis-selling reasons there are, call Payment Protection Scotland now.

How to Claim PPI Compensation With no Hassle and no Stress

Sometimes, we start something assuming it will be easy and straightforward, only to find obstacles and hurdles galore!

For some people, claiming compensation for mis-sold payment protection insurance (PPI) can be just like that. They assume that because they have it, it must have been mis-sold - only to find that their claim is denied.

So, to make your PPI compensation claim easier and relative hassle-free, this is what you need to do:

Step 1 - Be confident you have a PPI policy (or policies) in the first place

Some people wrongly assume that because the media say the problem is on a large scale - which it is - thateveryonehas a claim for being sold PPI. This is not the case.

Therefore, you need to be confident that you have a PPI policy or policies, and on what account(s) they are applied to.

Remember, PPI was debt-specific meaning it was one policy per account. Therefore, you may have a credit card and a loan with the same provider, but a PPI policy on each account.

Step 2 - Be confident about why it was mis-sold to you

PPI was mis-sold for all kinds of reasons, such as:

  • You didn't need it
  • It didn't cover you
  • You were told or given the impression that to get the loan in the first place, it would be better to have a PPI policy
  • You were not told of the significant medical exclusions under the policy
  • And so on…

There are all kinds of reasons why it was mis-sold and you may find that more than one applies - you don't need to have just one reason. Don't forget that the selling of PPI was driven by large profits and commission payments, with the reasons given for you to buy it unlikely to be for your benefit.

Step 3 - Create a letter of complaint/complete the form etc.

Some banks have a prescribed method of claiming PPI compensation and you can find the details of how to go about doing it on their website or by calling them.

In the early days of PPI compensation, customers wrote a letter of complaint and many people still do this to supplement the information that the bank may need. This is because many customers are angry at the way that they feel they have been treated by the bank that they trusted to have their best interests at heart.

Step 4 - Get help and advice if you need it

Payment Protection Scotland is a company expert at helping people to claim PPI compensation. Why not contact us to find out more?

What Can You Spend Your PPI Compensation On?

For some people, the prospect of gaining a windfall of cash is something that excites them but also leads them to worry about it too.

Some clients assume that they will have to pay a large amount of tax on it or that they are unable to spend it as they wish because, there may be other things that they need to do.

The truth is very different. And here's why:

The money you are receiving back should not have been taken from you in the first place

When you were sold payment protection insurance (PPI), it was at your expense. Not only was it an expensive policy for very little cover, the likelihood of you being able to make a successful claim on it was very low. In the vast majority of cases, customers would not have been able to make a claim because they were not eligible to do so because they were not covered by the policy.

PPI compensation should put you back to the financial position you would have been in had you not been sold the policy

In other words, every single penny you paid them in PPI premiums, along with interest and any fees or costs charged on the account is all due back to you. At the start of the PPI compensation saga, customers were made derisory offers but today, each and every customer must be compensated in full.

In most cases, tax is not paid on the PPI windfall

Everyone's tax position will vary which is why if you are unsure, you should seek advice of an accountant or tax specialist. In the majority of cases, PPI compensation does not attract its own separate tax. Those who are in an Individual Voluntary Arrangement (IVA) or other kind of debt programme should check carefully how the PPI windfall with affect their position. However, in most cases, PPI compensation has a welcome and positive impact.

Once you have paid PPI Scotland fees, the money really is yours for you to do as you wish

What you do with your PPI compensation is entirely your decision. Surveys and research have found that people have used this windfall in many different ways:

  • Pay off other loans or improve their financial situation
  • Bought new appliances for their home
  • Invested in a new car
  • Spent money on clothes and shoes
  • Many people also enjoyed a large food shop!

PPI was a policy that covered only a small minority of people who bought the product, either knowingly or by having it foisted upon them. Claim your money back today with Payment Protection Scotland.

 

What can you Spend Your PPI Compensation on?

Of all the questions we are asked about claiming for mis-sold payment protection insurance (PPI), this is the one that gives us the most joy to answer.

In the main, you can spend your PPI compensation in a way that you see fit but, many people have all kinds of questions about the windfall that they receive, more so when the amount they claim back is substantial.

I am in debt. What should I do with my PPI windfall?

This is a good question, the answer to which should be explored with an independent financial advisor. Every person's situation is different and thus, this is only a summary of what you could do and is not meant as advice on your debt issue.

If you have an Individual Voluntary Agreement (IVA) or in a type of sequestration agreement, you may find that your PPI compensation will be seen as a windfall. In law, this means that it must be used to pay off creditors and agreements etc. Failing to do so cold land you in trouble which is why we always strongly advise seeing a debt expert.

If your account is in arrears and there is no formal or legal arrangement as above, it helps your credit score to pay off these arrears, and bring any accounts back up to date. It also true to say that if you can afford to pay off the debt, this places you in a strong negotiation figure. Ask the bank or lender for a settlement figure, as this could be less than what you owe.

Can I spend it on anything?

Yes you can, but there has been some research about how people do spend their PPI windfall and the results are interesting:

  • The vast majority of people bought a brand new car. This in itself has proved a valuable boost to the care sales within the UK and thus, has had a positive knock on effect on the economy.
  • The second largest spending category of PPI compensation was on 'white goods', freezers and so on, for the home. Again, this has proved a valuable boost to the economy.
  • Thirdly, people enjoyed a well-earned break, taking a holiday to foreign climes.
  • Many people chose to save their windfall, and some spent it on food, as well as buying clothing and shoes for the family.

Can Payment Protection Scotland help me claim money back?

We could, if you have an eligible claim for compensation. Why not contact us now to find out more?

What Can I Spend My PPI Compensation On?

That is a big question that only you can answer but, there are some questions that people have about their compensation cheque. So, if you have recently made a compensation claim for mis-sold payment protection insurance (PPI), what will you do with the cash?

Save or invest it

In 12% of cases from 2013, the recipients of PPI compensation saved or invested it in products that took care of their future.

This, of course, is a great thing to do with your cash and can provide a valuable nest egg for people who may not have a great personal pension, if they have one at all.

There are many savings vehicles and investment products out there but, if you are planning on doing this with your cash, remember the bigger the rewards, the bigger the risk to losing some or all of your money. ALWAYS seek help and advice from an independent financial adviser.

Take a holiday

The costs of holidays both home and abroad have decreased so much in recent years. The glut of low cost airlines has meant that the average sized family can now take off to Europe with a flight that is cheaper than taking a domestic train journey (in some cases!).

Flying further afield can be more expensive and, with the price of aviation fuel beginning to creep up, the costs of flights may no longer be as cheap for much longer.

And, when a recession hits like the global one from 2008 onwards, one of the first things that families cut back on are holidays. So, it is no surprise that 24% of people who made a successful PPI claim in 2013 used it to go on holiday.

Some will have used it to fund the holiday of a lifetime, others to simply have a few days away in a hotter climate.

Buy your dream car

The other big item that many successful PPI claimants bought was a new car. The UK car industry has a boom in 2013, the biggest since 2007 and the recession. Many experts and financial pundits suggest that the influx of billions into the economy in the shape of PPI compensation has been the main reason behind this book.

22% of people who received their pay-out in 2013 spent it on a new or second-hand car. Again, when money is tight, people tend to hang on to their car, waiting until the economy and their finances have improved to buy a car.

When the compensation cheque lands on your door mat, what you do with the money is entirely down to you. There is no tax to pay (in most circumstances) and so what you get is all yours.

Why not let Payment Protection Scotland help you make your claim?

Take the PPI Test

Would you claim PPI compensation if … you agreed to the policy being added to your account?

Many customers that we speak with worry that because they did agree to the payment protection insurance (PPI) being added to their account, that they don't have any grounds for claiming compensation.

But, this is not the case!

For example, many people were told how great PPI was as a policy. They were told that, in the event they were unable to make repayments due to ill-health or unemployment etc, that the policy would kick in and make the payments for them. They were told this amazing policy would do this for anything from 6 to 12 months.

Sounds great! But, were you told…?

  • The policy was only live for X number of years, but your loan was over a term of Y meaning you were not covered the entire length of the loan?
  • That if you had a pre-existing medical condition that this was NOT covered?
  • If you were self-employed, running a successful business that employed people, that in order to have a claim on the policy, you would need to shut this business, putting your employees out of a job?
  • That you could shop around and see if there was a better policy, at a better price?

Many people made the decision to have PPI but, they were not always told the full story of the policy at the time of purchase.

Would you claim PPI compensation if … you were advised to take out the PPI policy?

The answer here is a resounding YES!

As a result of the PPI mis-selling debacle, the way advised sales are conducted has changed. If a bank or lender advises you to take any policy, not just PPI, then they must write this down for you. This document must clearly set out why the policy is the right one for you.

Back in the mis-selling heyday, advised sales were a lot more slapdash and, as a result, this contributed to the mis-selling of PPI to thousands of customers.

Would you claim PPI compensation if … you had someone who could help you with all the twists and turns in the claiming process?

PPI Scotland is a company with one aim in mind: to help people, just like you, who have a genuine claim for PPI compensation to claim back all of their money.

In many cases, claiming back the cash is straightforward but, in other cases, it can take more effort and pressure. For example, in the case where customers are in arrears with a bank or lender, ensuring that a customer gets every penny back from them is important!

Would you like help claiming PPI compensation?