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Archive for tag: PPI Scandal

Sorting Through the PPI Scandal

Payment protection insurance (PPI) and the wholesale mis-selling of this product to thousands upon thousands of customers was, some people thought, a storm in a tea-cup.

But that was some years ago… and the saga is still rumbling on.

Knowing you have it - what are you looking for…

  • Any additional product added to your original loan
  • It may not be called PPI or even referred to in the small print as PPI BUT, any product that insures your repayments, promises or guarantees to make the payments on your account should you be unable to is PPI
  • Some policies were called single premium policies and this meant that you paid a lump sum upfront or this amount was added to your loan
  • Not all customers were sold PPI at the same time that they bought their loan, credit card, store card etc; banks and lenders have either added it later or they will have called you to sell the product to you.

What IS the problem with PPI?

  • It was expensive for the limited amount of cover it offered - in fact, one of the main reasons why PPI came to the attention of some of the consumer organisations was that the cost of the product was inflated compared to what the customer could buy if they opted for the same or similar policy but from another provider
  • It was the way it was sold - but, the main issue with PPI has been the way in which it was mis-sold to thousands of customers. Banks, at the height of the mis-selling debacle of PPI, were making huge profits; banking experts predict that as much as 85% of the profits made by banks at the time were from the wholesale mis-selling of this very expensive product.
  • If customers had shopped around, they would have got a better deal - and been protected! In the vast majority of cases, the cover offered by PPI was useless to the customer but, this did not stop the banks and lenders across the UK from selling the product to more and more people.

Too good to be true?

With stories in the media of some people receiving compensation cheques for massive amounts, the whole situation can take on a 'too good to be true' persona or, even worse, 'it does not apply to me!'

Here at Payment Protection Scotland, we appreciate the magnitude of the PPI mis-selling situation and know that there are still hundreds, if not thousands of people who are eligible to claim PPI compensation, but have not yet done so. There could be a pot of money with your name on it; regardless of how big or small this compensation cheque, the money is yours.

Don't let the bank keep it!

The PPI scandal – set to run and run?

With the PPI mis-selling scandal looking set to run and run, it seems that not everyone is keen on this idea with business leaders, including John Cridland, director general of the CBI wanting a 'line drawn' under the whole PPI compensation saga.

Scottish customers of the UK banks may or may not know, that generally there is a six year deadline to claim PPI from the moment they were mis-sold the Payment Protection Insurance (PPI) policy. Or, you can still make a PPI compensation claim during the three years that you became aware you were mis-sold PPI, whether the 6 year deadline has elapsed or not.

But Mr Cridland, along with other business leaders now feels the time had come to start winding down the whole PPI affair.

But why a PPI payout deadline?

The amount of publicity around PPI mis-selling means that the majority of Scottish (and Uk customers) who took out a loan, mortgage or credit card deal should be looking on paperwork, accounts and statements to see if they had PPI (or some form of it) on those accounts. Although everyone now seems to agree that the PPI mis-selling was a huge financial scandal that should never have happened, no one it seems realised the depth of the problem. Banks are paying out huge amounts of compensation to customers every day, with and without the help of claims management companies like Payment Protection Scotland.

Make sure you check as the PPI compensation door could be closing. A staggering 2.5million people have already made successful claims, with the average PPI compensation payout being £2,750 (source: bbc.co.uk). However, the emphasis is still on the banks to make sure they address the backlog of PPI complaints and that Scottish customer making claims, are confident that the offer they receive is the right amount of compensation.

But don't be put off by timeframes and deadlines. The PPI mis-selling scandal is still very much at the forefront of bank activities with them sending out on average 10,000 cheques a day in PPI settlement payments (source: bbc.co.uk).If you believe you've been mis-sold PPI, then contact Payment Protection Scotland today and see how we can help.