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Archive for tag: PPI Knowledge

True or False - Test your PPI Knowledge!

The payment protection insurance (PPI) scandal is coming to an end. With less than nine months to go until the 2019 PPI deadline, now is the time to test your knowledge of PPI and make a claim.

Knowledge

If you have no paperwork or evidence of PPI, you do not have a claim - true or false?

This could essentially be a difficult question to answer. However, over the years that the PPI scandal has rumbled on, the facts have become a little clearer.

In fact, the Financial Conduct Authority agreed some time ago that this 'do I, don't I?' about whether to make a claim or not needed to be dealt with. The truth is that many people may not have the evidence they think they need to prove they had a PPI policy -but the banks do.

This is why banks were told to write to customers to tell them they had PPI and may be entitled to make a claim.

Even if you are unsure about whether you had a PPI policy or not, there is no harm in asking your bank or lender to check your account records on your behalf. If they say you did have PPI, you can then go ahead and lodge a complaint asking for compensation if you believed it was mis-sold to you.

PPI compensation claims are 'automatic' - true or false?

Again, with stories of thousands of people claiming back thousands of pounds in compensation - collectively, the banks and lenders have paid back billions in compensation - you could be forgiven for thinking that compensation should be automatic.

It is true that PPI was mis-sold on a scale that could only be described as gargantuan. However, every case is different and must be treated as such. There are many reasons why PPI was mis-sold and the reason why it was deemed as mis-sold to you, will and can vary from the reason why it was mis-sold to someone else.

This means, therefore, that not only in compensation NOT automatic but the amount you receive in compensation is also not automatic nor is it the same. There are so many variable factors in from one case to another that it is important that each case is assessed on its own merits.

PPI claims are drawing to a close - true or false?

Just when we think that the fire is being extinguished beneath the boiling vat of PPI claims, something comes along to stoke the flames.

But the 2019 PPI deadline has been confirmed. You have until 11.59pm on 29th August 2019 to lodge your complaint. Why wait? Act now!

Is Your PPI Knowledge Up to Scratch?

Thinking of making a claim for PPI compensation? Make sure you have all your facts so you get the maximum compensation owed to you.

Books

Did you know, you can still buy PPI?

It is still possible to buy PPI because, as an insurance policy, it may be useful to some people. However, since the mis-selling debacle, there has clearly been some changes.

Back in early 2004, there were many criticisms regarding PPI, some from consumer groups and other from the UK Government.

The complaints can be summarised into four main points. Do you know what they are?

  • PPI added 20% to the cost of a loan

Investigations into how and why PPI was mis-sold found many things that were concerning to the banking regulators. One was how much it added to the overall cost of a loan.

Banks make a profit on a loan by charging interest but, with PPI added to it too, loans, credit cards and so on became incredibly lucrative.

In some cases, the addition of PPI to a loan could inflate its cost by 50%.

  • PPI had a deliberately ineffective structure

Investigations found that the claiming process was long and drawn out, with many people realising too late that the policy they were paying for was ineffective. Worryingly, the means by which people made a claim was structured so that successful payouts would be limited, even when someone was genuinely ill and needed the policy cover to swing into action.

  • PPI was sold as 'essential'

The emotions of the consumer were played upon. In other words, they were told that the wisest and responsible thing to do was to protect their repayments, in the event that they were unable to work and so on.

Clearly, as a consumer, we agreed with this scenario and thus, made sure that we bought into PPI not realising that it was ineffective and useless.

  • Inefficient through and through

The fourth point that was made was about the sheer inadequacy of the whole insurance product, the claiming process, the lengthy delays (questioned as deliberate in many cases), the inability for customers to get answers and when they tried to cancel the policy, were told that this was not possible.

You can claim PPI compensation with the help of Payment Protection Scotland

Some claims take a little more chasing than others or, if you have more than one policy with more than one bank, it can feel like a time-consuming drag to make a claim. Payment Protection Scotland can help - why not give us a call?

Test Your PPI Knowledge

It can be confusing sorting through all the facts and misinformation about payment protection insurance (PPI). This can put people off making a claim. We want to make sure that everyone who has a genuine claim for PPI compensation goes on to successfully claim ALL of their money back.

Do you have the know-how to do so?

1. You can claim PPI compensation if you are aged:

  • a. Aged between 18 and 65 years of age
  • b. Any age
  • c. Aged between 18 and 80

The confusion with age and PPI policies comes from the fact that the policy only covered people who were aged between 18 and 65 years when they took out the policy. It did not cover anyone over the age of 65 or anyone who was retired.

Some people think that once you are over 65, you cannot make a claim for compensation but this is not the case. You can make a claim for PPI compensation no matter what your age is thus the answer is c.

2. Mrs H. is self-employed. She had PPI. Nora is 21 and a student. Bill works full time and had a joint loan with his wife. Who can claim PPI compensation?

  • a. All of them
  • b. Bill and Mrs H.
  • c. Nora

The truth is they could all have a claim for PPI compensation:

Mrs H. would not be covered by the policy as to claim under its terms and conditions, she would need to close her business. This may not be something she is aware of.

Nora would not be covered by the policy as she is not employed, therefore the PPI policy has not income to replace technically speaking. The job she does have while she studies is part time, therefore she is still not covered but she may not know this.

Bill can make a claim as he is under the impression that the policy covers him and his wife as the loan they have is in both their names. This is not the case. In fact, the PPI policy is in his wife's name.

3. It takes, on average, how long for a PPI compensation claim to be resolved?

  • a. 4 months
  • b. 12 weeks
  • c. 12 months

Most PPI claims that are clear and straightforward can take 12 weeks or less. For more complex claims and for those that are disputed by the bank, it can take a lot longer. If the Financial Ombudsman becomes involved, it can take 12 months or more. For other cases, it can take longer but with PPI Scotland on your side, we will be chasing your claim for a quick resolution.