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Archive for tag: PPI Mis-Selling

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!

The PPI Mis-selling Saga – Missing Trust

Payment protection insurance (PPI) is now surely the most infamous insurance product ever to have been sold in the UK.

Handshake

A golden ticket…

No bank, building society or financial company seem to have been immune from the riches and profits that the sale of this insurance product offered.

From swelling the company profits to gargantuan proportions, to swelling the salary of the bank representative who sold the policies to customers, PPI was for everyone involved, the golden ticket.

But not the customer

But, it wasn't actually the golden ticket for everybody.

The people who did not benefit from the sale or purchase of PPI were the vast majority of customers who bought it.

Sold on the premise that it was the financially responsible thing to do, customers were swayed, cajoled and pressured into buying an insurance product that was, in many cases, not right for them.

For example, people who were self-employed, it only offered to pay out if they were too ill to carry on running their business and close it down.

This ring of permanency is not something that is common to many illnesses, thankfully.

Other customers simply did not realise they had 'bought' PPI. This took different shapes;

  • the banks often wrote to customers, telling them this great product had been added to their account and was all part of creating a better service for them, the customers, who, the bank inferred, they cherished so much.
                                                                              
  • For others, the 'buy PPI' box was already ticked at the end of a very long, very fine small print with all the conditions of the credit card they were purchasing.

The cost of PPI outweighed the meagre cover it offered, to the few people who had any hope of making a claim. Those that did try to claim, only 15% were successful in claiming any sort of pay out.

And even then, they had to wait 12 months before they received any money by which time they were either better and back at work or in severe financial straits.

The turning tide

The banks are still struggling to gain back the trust of consumers, both the 'man on the street' and the large companies and global corporations that they do business with.

The fixing of the Libor exchange rate didn't instil confidence that banks had, in fact, changed their ways.

The PPI mis-selling scandal opened up a whole can of worms in effect. It threw the spotlight on to an often unlit part of British banking. The attitude that the banks knew what was best, financially, for their consumers is gone.

Consumers are now more aware of their rights; they do not have to buy any additional products along with their loan and, if the bank do stipulate they want the repayments insuring, they cannot insist that the consumer buy their products.

Isn't it time you claimed your money back?

Top 5 PPI Mis-Selling Tactics – Were YOU a Victim?

To claim PPI compensation, customers need to prove they were mis-sold PPI on their mortgage, loan, store card, catalogue account or credit card etc. This means telling the bank or lender why you believe it was mis-sold to you.

Tactics

Unsurprisingly, over the last six years of PPI compensation claims, there are some popular mis-selling tactics coming to light. So how is the top five looking?

1. Self-employed, unemployed or retired?

If you were NOT asked about your employment status OR after making your employment situation clear - you were not in employment or you were self-employed or enjoying retirement - but were still sold the policy, you have an eligible compensation claim.

Most PPI policies also had anupper age limitbeyond which the policy would not pay out, normally 65. Therefore, if you were 'too old' to make a claim when you were sold PPI then you have a claim. If you passed this age threshold whilst you had the policy, you may be entitled to claim the premiums back after this date.

2. Pre-existing medical condition?

Exclusion for pre-existing medical conditions is fairly standard across many insurance policies. In other words, very few insurance policies will pay out on a medical claim if it comes to light you suffered from the condition etc. before you took out the policy.

However, many customers were not made aware of this when they took out the PPI policy and neither were they asked specific questions regarding their health.

PPI did not cover 'bad backs' unless it was a spinal injury of some sorts and neither did it cover mental health issues, two common reasons for extended leave of absence from work.

You should also have been made aware of any other exclusion under the policy.

3. Compulsory? Advised to buy?

Some financial institutions, banks etc. sold PPI policies on the basis that it was compulsory - which it is not.

The policy was entirely optional although it was oftenhinted to customers they were more likely to secure the loanor make a successful application for a mortgage etc. if they took out the PPI policy.

If you were sold the policy after 14 January 2005 and the PPI was 'strongly recommended' (or similar terms were used) then this constitutes an 'advised sale'. Unless you received documentation that clearly illustrated why this policy was recommended for you, then you may have an eligible compensation claim.

4. Did it suit your circumstances?

Up until May 2009, most PPI policies were sold as 'single premium cover' policies. This meant that the cost of the PPI was added to your loan and you were made to pay interest on this amount, as well as the loan amount you borrowed.

Most single premium policies last a 'standard' five years - if your loan or product lasted longer than this, then you may have a PPI claim. Similarly, you may also want to consider making a PPI claim if the loan was in joint names as PPI covered only one person.

Also, if you made it clear to your lender that you already had some form of payment protection in place, but they still sold you PPI, then you could have a claim.

5. Didn't know you had PPI...?

Most customers are surprised to find they had PPI cover! Some old policy agreements simply had a tick box to decline PPI on their loan etc. and this had now deemed to be mis-selling.

Check you PPI documentation and if any of the above apply to you and consider making a PPI claim!

The Top 5 PPI Mis-selling Reasons

With the promotional campaign backed by the Financial Conduct Authority underway, the claims for PPI compensation are expected to increase. Customers are being urged to 'make a decision' on whether to claim PPI compensation by the 2019 PPI deadline.

top5

With the clock slowly ticking, it is important for you to decide too, if PPI compensation is something you want to enjoy. But what are the top 5 reasons for PPI being mis-sold?

Making it on the list at number 5 is those PPI policies sold to people who wereself-employed, retired or unemployed

Effectively the policy is worthless as the policy only applied to people who were employed full time and with a contract. Therefore, anyone working less than 16 hours a week or on a zero-hours contract probably wouldn't be covered by PPI either. If you were self-employed and made a claim it would mean closing your business, not something that many people needed to do or wanted to do in the case of short term illness.

Nudging at number 4 was the selling of the policy to people withpre-existing medical conditions

It would have been an unpleasant surprise if you had attempted to claim if you were unable to work for any length of time. Thinking you were being financial prudent, only to find it was a complete waste of your money as your pre-existing medical condition was not covered but the bank didn't tell you that when you bought it.

Middle of the list at number 3 was the selling of PPI as acompulsory product

PPI never has been compulsory and neither has taking out any other kind of insurance product when you have bought a loan, credit card, store card, opened a catalogue account and so on. After January 2005, if you were sold PPI on the premise it was 'strongly recommended' or advised, do you have the reasons why in writing? If not, this is mis-selling.

Nearly at the top at number 2 was the'not fit for your circumstances'

Until as recently as 2009, some PPI policies were sold as single premium. In other words, you paid upfront for something that was useless. Not only that, it did not cover the term of your loan. This is defined as not being fit for your circumstances, and it happened frequently.

Topping the chart at number 1 is not knowing you had PPI in the first place!

Can you believe that people were duped in 'buying' PPI by a single, tiny pre-ticked box at the end of the application form? You were and you were not aware of it.

Claim back YOUR PPI compensation with Payment Protection Scotland - call us to find out more!

PPI Mis-Selling Situations

Q. I have PPI on my credit card, which I agreed to buy as I thought it was a good move. 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?

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 in to 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 over drawn 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 lenders must 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!

PPI Mis-Selling – The Main Reasons

Payment protection insurance (PPI) is an infamous product, especially the way in which it was sold. If you had a loan, credit card, store card, car finance, catalogue account etc. from the mid-1990s onwards, it is more than likely that you had PPI.

In the majority of cases, it was mis-sold and there are many reasons why this is the case. With the Financial Conduct Authority announcing a PPI deadline of August 2019, read through the following list - have you been mis-sold PPI?

Were you mis-sold PPI?

I. You were pressured into buying PPI or told that you must buy it

II. You were promised a cheaper loan rate if you took out PPI because it made the loan a lower risk, or something similar

III. You were told you were more likely to be accepted for a loan, credit card etc. if you took out PPI - again, you may have been told because this made you a lower risk

IV. You didn't know you have PPI because it was added without your consent

V. You were advised to buy PPI- advised sales are now more tightly controlled but many people were advised to buy PPI even though the policy clearly didn't suit their needs

VI. At the time you were sold PPI, you were either self-employed, employed or retired but you were still told or advised to buy PPI

VII. You had apre-existing medical condition at the time that PPI was sold to you which may have affected your ability to make a claim against the insurance policy - in most cases, pre-existing medical conditions were not covered by PPI

VIII. You were told that your pre-existing medical conditions were covered by the PPI policy, even though it would not have been - PPI did not cover pre-existing medical conditions and also did not cover illnesses such as mental health or 'back problems'

IX. It was not made clear you wouldpay intereston PPI when it was added to your loan - this made borrowing money very expensive

X. It was not made clear that thelength of the PPI policywas shorter than the term of the loan - that is, your loan was over 10 years but your PPI cover only extended to the first 5 years of the loan

Do You Have a Claim?

There were an estimated 64 million PPI policies sold to millions of customers across the country. If you had a loan, credit card, catalogue account, car finance, mortgage etc. you could be a victim of mis-selling. And PPI was still being mis-sold as recently as 2010!

The time has come to claim your money back - do it now before time runs out…

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.

2017 Re-Cap: PPI Mis-Selling – Letters from Lenders

In 2013/14, 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.

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.

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

Advertising activities, such unsolicited text messages or SPAM messages, have made many people wary of anything that mentions PPI or suggests huge amounts of money.

Therefore these letters had to be:

  • Be free from marketing material as well as financial jargon
  • State clearly the letter contains important information and should be read carefully
  • Clearly state that the customer may have been mis-sold PPI type policy
  • State that the customer, as a result, may have suffered 'financial loss' and may be entitled to compensation (also termed a 'redress')
  • Clearly emphasise that there is a3-year time limit in 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 three-year time limit is close. Have you made your claim for PPI compensation?

What can you do NOW?

  • Don't wait for the three-year time limit - 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?

5 Top PPI Mis-selling Reasons

It is now an infamous saga, one that has forced changes in the British banking industry. It has seen vast changes and for the customer, it has been a chance to claim back their money after being mis-sold payment protection insurance (PPI).

With a deadline of June 2019 signalling the possible end of the PPI mis-selling saga, you may be thinking of claiming back your money.

If this is the case, you will need to know the top mis-selling reasons as one of these could be the reason why you can claim back thousands of pounds.

With up to 70% of customers being sold a policy they didn't need, you could on the brink of claiming back a substantial PPI windfall.

Unaware or did not agree to buy PPI

We find that many of our customers were unaware that they had a PPI policy. Many customers also had NOT agreed to the policy, mainly as it added significant cost to the loan or because they did not need it. On examining their paperwork, however, they found that a PPI policy had been added to their loan! If the reason for mis-selling detailed in your letter of complaint to your lender is you were either unaware or did not agree, then the onus falls on the lender to provide proof of your agreement.

'Fully protected' loan

Some customers purchased a 'fully protected' loan, only to find that this included a form of PPI. Whilst this may not be an issue in some cases, the terms and conditions of the PPI were not fully explained meaning that the possibility of you NOT being covered by the PPI policy is high.

Compulsory or not?

Other customers were told that the PPI policy was compulsory. The terms and conditions of the loan may state that some form of payment protection insurance is compulsory - this in itself is not the problem but you may have been given the impression that the only product that was suitable was their own PPI policy. If this happened to you, you may have a compensation claim.

Pre-filled application forms

Many lenders and banks pre-filled application for their customers and whilst this may seem helpful, look professional, neat and tidy, the likelihood is that many of the 'tick boxes' of optional items such as PPI, were already ticked. In other words, unless you noticed this or it was drawn to your attention, you would not have opted out. This is not fair selling.

Online or over-the-phone applications

Although the lender could say everything was in the terms and conditions, the long reams of small print are not something that are comfortable to read. In other words, the bank needed to draw things to your attention and that may not have happened.

We can help you claim your money back and we can start working on your case today - call us now!

Key PPI Terms Explained

The payment protection insurance (PPI) mis-selling scandal has been running for some time now. Like a good soap opera, it keeps rejuvenating its main storyline so that the good guys always win - the good guys in this soap opera, being the customers and consumer organisation that have fought long and hard to make PPI compensation a reality for the thousands of people duped out of their cash.

But when it comes to understand some of the terms and jargon associated with PPI compensation, it can be a little more difficult.

Here at Payment Protection Scotland, we have gathered all these terms together and endeavour to explain them;

APR - is a form of interest banks and lenders charge on product and is calledAnnual Percentage Rate. The higher the APR, the more interest you will pay back on your loan or credit card. You should get your premiums back and the interest charged on your loan or credit card and an additional 7% on top.

Generic term - this means that the term being used is a general one, a phrase or word that covers a whole heap of additional policies etc.PPI is a generic term; in other words, there are many payment protection insurance type policies but individual policies from different banks or lenders will be called different names, sometimes depending on what product they are meant to cover.

Examples include:

  • ASRI - Accident, sickness and redundancy insurance
  • ASU - Accident, sickness and unemployed insurance
  • CCI - Credit care insurance
  • MPI - Mortgage payment insurance

There are others too; if you are unsure, contact Payment Protection Scotland?

Letter of Complaint - this is the formal name given to the detailed letter or form you will send to your bank or lender asking for your money back. It sets out the reasons why you believe you were mis-sold PPI. There are examples available online or when you engage PPI Scotland to act on your behalf, we construct this as part of the claims package.

NB - Each account with PPI requires a separate letter of complaint. Your bank or lender assesses your account and your claim for compensation from the details contained in this letter.

Claims Management Companyor CMC - this is a company that acts on behalf of its client to make compensation claims. There are many companies who claim compensation for a variety of things, such as if you have been injured in an accident.

Payment Protection Scotland is a claims management company specialising in making compensation claims for mis-sold PPI. We charge a fee for our service, which can be found in the terms and conditions on our website OR, better still, give us a call and speak to one our friendly advisors.