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Archive for tag: Paymen

Payment Protection Insurance OR Income Protection Insurance?

There are many insurance policies available to buy. The one distinct advantage of having access to the internet is that you can research what each policy offers while giving your chance to compare the premiums from provider to provider.

Opportunity

With payment protection insurance (PPI) being at the heart of the biggest mis-selling scandal to have rocked the UK banking industry, it can be easy to confuse one group of insurance products with another.

Income protection insurance is one that is commonly confused as a PPI policy but there is a difference.

What PPI should offer

PPI is a generic name given to an insurance thatpromises in the event of you being unable to work due to long-term illness or unemployment that it will make repayments on the loan it is secured against.

Most mortgage providers insist on some form of insurance or life cover for the mortgagee so that in the event of the work case scenario, there is an opportunity for them to claw their money back.

Is income protection the same as PPI or something different?

Income protection insurance has a wider scope than PPI.

This type of policyprotects your incomeand is a package that many employers offered their employees as part of a benefits scheme.

In others words, for a small premium each month, your monthly income was protected for a certain length of time. In most cases, this would be 12 to 18 months, long enough to either rehabilitate, get back to work or to retrain and create an income another way.

Competitive or not?

Financial experts now say that the income protection type insurance can offer all-round better protection but it is imperative that you read and understand the terms and conditions.

After all, on being unable to work you do not want to discover that the policy is of no use if it does not cover a pre-existing medical condition, for example - just like PPI did!

The more the income protection policy promises to cover, it follows that the more expensive the monthly premium will be.

PPI on the other hand did not offer a competitive premium for the limited scope it offered customers.

Not only that, the way it was sold was unfair to the vast majority of customers. It simply did not, in some cases, cover people because they were either self-employed or retired - yet the banks still sold it to their customers, knowing that it offered them no protection.

Looking for a new insurance policy of any kind? Learn from one major PPI mistake!

Customers were not encouraged to shop around and get a better deal for their money. When buying any insurance, including PPI and income protection, shop around and get the right premium at the right price.

Could the Banks Owe Billions MORE in PPI Payments?

Banks and lenders could have been dealt another blow in the PPI saga this week with a could awarded £17,345 in compensation even though they were not mis-sold PPI.

Skyline

Christopher and Joanne Doran were awarded the sales commission they had paid, plus interest, on a loan and PPI they had bought.

This is the first time anyone has been awarded commission refund payments when the PPI policy was determined to have been legitimately sold.

Even though it sends a strong signal, for anyone else looking to claim back the commission they have paid on a PPI policy will need to go to court.

Under the Financial Conduct Authority ruling after the Plevin case, customers could claim back commissions payment - the money paid to firms on behalf of insurers for arranging their policy with customers - if it was considered excessive.

What this means is, customers could reclaim any amount of commission that was in excess of 50% of the premium.

And, as the Doran's proved, this can be done even if the PPI policy was not mis-sold.

Under the Plevin ruling, around 1.2 million complaints regarding excessive commission have been successful out of a total 13 million PPI pay-outs.

Setting a precedent?

The City think not.

The judge ruled that the couple were entitled to the whole of the commission - 76% - plus interest.

Currently, Paragon Personal Finance is deciding whether to appeal the case.

Whilst lawyers are toasting success claiming it could place another £18 billion debt at the door of banks to pay back to customers, the City experts think this isn't the case.

With £30 billion paid out to customers thus far, some experts believe that the number of claims left is lower than predicted although there are still some people who suggest that there are millions of customers yet to make a claim.

PPI deadline

The FCA has determined that all PPI compensation claims must be made by August 2019.

But what about commissions payments? Could you be owed more?

You could approach your lender and ask what commission payment was involved or contact your broker direct. They should supply you with this information as part of your claim.

If it has been determined that your policy was sold correctly, but you want to claim compensation for the commission, then you will need to contact your solicitor who can advise you further.

For all other PPI compensation claims, just pick up the phone and call Payment Protection Scotland!

 

Are you missing out of money with your name on it?

If you knew, with certainty, that you were owed thousands of pounds, what would you do? Not bother or claim it back as fast as you could?

Money

The likelihood is you would claim it back. With only a simple letter, you could claim back compensation for mis-sold payment protection insurance (PPI)… and this could be worth thousands of pounds!

How to claim PPI compensation

Claiming compensation for mis-sold PPI is straightforward. What can present difficulties is when the bank or lender deny your claim or eligibility.

There are ways that this can be challenged.

Steps to Claiming PPI compensation BEFORE the 2019 PPI deadline

In the first instance, you need to do the following…

Check ALL accounts

PPI was added or sold to customers on them opening a variety of credit facilities, such as catalogue accounts, car finance, unsecured or personal loans and, in some cases mortgage too. Credit cards were also commonly targeted by banks but any account in which you borrowed money could be affected by PPI

Know what you are looking for

PPI is a generic name for an insurance policy that promises to make repayments on the account should you be unable to do so due to illness, unemployment etc. Different banks or financial companies called their PPI type policies different names; if you are unsure, call PPI Scotland for help.

Why were you mis-sold the policy?

This is the next question you need to answer as part of the whole claiming PPI compensation process. In order to successfully make a claim, you not only need to identify you have PPI, but you also need to prove that it was mis-sold to you. There are many reasons why PPI was mis-sold to customers, from not being told about the exclusions under the policy to not being told that about the policy at all!

Payment Protection Scotland can help you understand why you were mis-sold PPI as these reasons are important in claiming your compensation back.

Put your letter together

For many people, they find this difficult or and not so confident in dealing with banks or lenders. PPI Scotland can help you put together your compensation claim letter, full of detail. Send it off and wait to hear back…!

But, if they say NO…

This is not the end of the PPI compensation story. You still have one more avenue to explore and this is asking the Financial Ombudsman Service to look at your case and make the final decision. Our team will guide you through this process.

IF you try to claim PPI compensation AFTER the 2019 PPI deadline

Unless the policy was sold to you after July 2017, you will no longer be able to claim your money back. Can you afford to take the chance?

Claiming PPI compensation is something you can do if you have been mis-sold PPI… after all, it is YOUR money!

Is Payment Protection Insurance any Good?

There many insurance products that you can buy in to that cover all kinds of eventualities. From life insurance cover to critical illness insurances, there are many products, many brands and different levels of insurance cover, all at differing costs.

PPI was one of them. Despite is poor reputation as a result of the mis-selling scandal, it is possible to buy PPI. In some cases, it may be the right insurance policy for you.

Clearly, protecting the things we love and own is important. There are some insurances that are more important than others. Some insurances are compulsory;

  • Car insurance- compulsory and essential, driving in an uninsured vehicle will lead to serious consequences.
  • Buildings and contents insurance- important too, should anything structural happen to your property or should there be issues with the contents of a property and so on. Some mortgage companies will insist you have buildings insurance to cover the cost of re-building your property.
  • Critical illness cover and so on- protecting ourselves is important too, especially if one person is responsible for paying the mortgage and so on. This type of insurance can give us peace of mind.
  • Income protectioninsurance- is similar to critical illness cover but covers you to the level of your income.

With any kind of insurance policy, seek independent financial advice to make sure that the policy is the right one for you.  

So, there is nothing wrong with PPI?

There may be some instances in which PPI is the right policy for someone to have. There are all kinds of variable and factors that affect this decision;

  • Benefits from work- many people a generous benefits package from work which should be considered. For example, if you are off ill for any length of time, you may enjoy 3 months' full salary from work before your income drops. This means you won't need a PPI type or income protection policy to kick in until after 12 weeks.
  • Check the insurances you already have- PPI in many cases was a duplicate policy. This means banks forced it on people, telling them that other insurance products were not good enough. They also said that a customer needed to take out the bank's own PPI product.
  • Value for money offered- PPI in the case of mis-selling was expensive and poor value for money. In other words, you were paying a hefty monthly premium for little cover.

Can you claim PPI compensation?

It may be that you can claim back all your PPI premiums, along with any other costs and fees including the commission paid if it was more than 50% and you were not told this.

There are many reasons why PPI was mis-sold. Many people - just like YOU! - have genuine claims for compensation. Are you one of them? Find out by calling Payment Protection Scotland today.

Payment Protection Insurance – are you sure you don’t have a claim?

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

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 been in receipt of a loan, had a credit card or store card or opened a newmortgage in the last 12 years or so?

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?

It is NOT a complicated process...

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, are 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 therefore did not need an additional 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.
  5.  I have no paperwork or policy numbers

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 PPI 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.

How Claiming PPI Compensation Will Make for a Better Banking System

Flexing your consumer muscle - how claiming PPI compensation will make for a better banking system for YOU!

The mis-selling of payment protection insurance (PPI) has rocked the British banking industry. With heavy fines and an ever-growing compensation bill, banks have been paying the price for mis-selling a policy that few people needed.

Taking part and claiming your money back will not only benefit you, but also help to improve the banking system. Hopefully, with new policies and rules in place, something like this should never happen again.

Setting the scene for mis-selling

Incentives are an important motivation tool in all kinds of settings. From students meting a deadline, to a sales person selling a number of products per week or on a monthly basis.

Hit these targets and win a prize, so to speak. Or, even better, surpass these weekly or monthly targets and get an even bigger prize. Keep on doing it and the rewards are vast.

Whilst these targets can propel people and business on to bigger things, when the consumer is lost in the process, it sets a dangerous precedent.

In other words, with the selling of PPI being on a commission basis, the sale and bank staff switched the focus from what was best for the customer, to what was best for them.

Sell PPI policies to all customers, even if they didn't need it or had no need of it, but still get a handsome commission payment.

But the individual bank staff members were not the only winners - the banks were too. They were making huge profits on every PPI policy sold, including the one that was sold to you.

For the banks and their employees, it was an all-round win-win situation.

The losers

The loser was YOU but there was also another loser - the reputation of the banking industry as a whole.

You should be able to trust your bank. After all, they hold something incredibly important to you; you bank account in which your salary arrives each month. The mortgage on your home. The insurance, in some cases, that ensure your family are looked after in the event of a disaster or emergency.

If you cannot trust them with your financial well-being, who can you trust?

And this is why flexing your consumer muscles, claiming PPI compensation is adding your voice to the bigger picture. That the iconic British banking industry needs to be what it once was. An icon of trust and financial ability and not based on commission based selling.

Claim your money back - contact Payment Protection Scotland.

Payment Protection Insurance – Worth the Money?

With so much media attention around payment protection insurance (PPI) and its mis-selling by banks and lenders in the UK, it has left many consumers confused as to whether they should bother with PPI.

There is no doubt that a PPI type policy can be a good thing, if you can afford it alongside other major insurance that are deemed essential.

Before considering PPI, many financial advisers suggest that you take into account the more essential insurances, such as car insurance and home and contents insurance.

PPI can be a good idea if you have a lot of debt, not enough savings (if any) to cover your repayments in the event you did lose your job etc. or if you feel that you job currently is under threat and redundancy is a real possibility.

Get a good deal!

One of the major mis-selling reasons behind PPI from the mid-1990s onwards was that banks and lenders told customers that their 'own brand' of PPI was compulsory.

This was not the case. With the various judicial reviews and rulings, one fact stood out above all others: PPI policies sold by banks and lenders were not value for money and customers could have got a better deal by shopping around. This is something that many of us are adept at doing with car insurance and so on - PPI is no different.

As with all insurances, shop around to get the best quotes for the policy cover you need and want. Remember, the more the PPI policy covers, the more you will pay.

What's covered and what isn't?

Check carefully the terms and conditions of the policy and take note of what is covered and what is excluded.

Many of the mis-sold PPI policies were of no benefit to many of the customers who are now being compensated.

As well as significant exclusions not being explained to customers, many people also found that they various illnesses and conditions were not covered by the PPI policy.

Therefore, check carefully;

  • Are pre-existing medical conditions covered by the policy?
  • Are various employment statuses covered by the policy e.g. self-employment, retirement etc.
  • Is there a 'lull' period during which PPI will not pay out? Some policies only start payments after 13 weeks.

PPI was mis-sold on a huge scale and now customers are being compensated for this mis-selling. Many banks and lenders simply added PPI onto accounts without the knowledge or permission of the account holder. Neither was PPI value for money, adding significant debt onto a loan or credit card whilst offering poor cover.

If you have a claim for PPI compensation, we can help. Contact Payment Protection Scotland today.

PPI - The Bank Said No...

The obstacles that can stand in the way of a successful compensation claim - and what can be done about them!

There are all kinds of scenarios and situations that can arise when attempting to make a claim for compensation after being mis-sold a payment protection insurance (PPI) policy. Here, we look at some of the most common ones, and what (if anything), can be done to rectify the problem.

The bank said no

As part of their decision, they should explain fully to you the reason why they are refuting your claim for compensation. There are all kinds of reasons, from saying that the policy was fully explained, you needed this kind of policy and so on.

Can anything be done about it?

Yes. You can ask the Financial Ombudsman Service (FOS) to look at your case, but you will need to tell them why you think the bank's decision is wrong and unfair. You will also need to be prepared to wait, as it is currently taking FOS around 12 months to deal with PPI cases their workload is so heavy.

I am in debt or arrears

There are many people who feel or assume that they cannot make a claim for PPI compensation because they are either in serious debt with a bank or lender, or that their account is in arrears.

There is nothing that can stop you being entitled to make a claim, but if your claim is successful the bank or lender may apply this to your account to bring it up to date. However, it pays to get advice and help as it may be that some of these costs that have plunged you in to arrears are actually linked to the PPI policy. You need to be sure that every penny due to you is paid back.

Can anything be done about it?

Yes, with the help of a reputable claim management company such as PPI Scotland, many people in debt and arrears have successfully claimed the money that they are entitled to. Those in an IVA arrangement helping to pay off their debts can also make a claim.

I have no paperwork/can't remember why I agreed to the policy and so on…

PPI was mis-sold to thousands of people in all kinds of different ways. For example, some people were sold the policy over the phone in a marketing call. Others had the policy linked to their account without their specific permission and some people cannot remember why or how they agreed to it.

The rules governing the sale of financial products is clear. The customer should be made fully aware of the advantages and disadvantages of buying a product, something that did not happen in the case of PPI.

Can anything be done about it?

Yes. Contact Payment Protection Scotland to find out more.

PPI – The Charges Laid Against It!

Payment protection insurance (PPI) is a product that for some people, could be a great policy to buy in to.

Intended to protect and make repayments on loans etc. should you be unable to do so, sounds a wise financial move BUT, although the product is now considered weak alongside its other income protection cousins, PPI was also mis-sold.

But did you know, back in 2008 when initial concerns were raised and then acted upon, there were 4 charges laid against PPI that meant banks were reaping the profits, whilst the customer premiums lined the banks' pockets…

Charge 1: Expensive

We know now that people were paying over the odds for a policy that, if their claim was successful, would, in reality, deliver very little. In some cases, the cost of PPI added as much as 20% to the cost of the loan, after interest! The consumer organisation Which?, a virulent campaigner against PPI back in 2008, also found people who saw the cost of their double when PPI was added to it.

Charge 2: Ineffective

Unlike other insurances, the chances of claiming against the PPI policy were low with Which? suggesting that banks and lenders were deliberately contriving to make this the case. If they could decrease your chances of claiming on the policy, the more money they would not only make… but keep. Estimates suggest that there was only a 15% chance of a claim being successful, an incredibly low figure compared to other insurance products.

Charge 3: Mis-sold

Of course, we all know that PPI was mis-sold and this is the basis on which hundreds of thousands of customers are making PPI compensation claims. There are nay reasons why PPI was mis-sold to customers, from it simply being added to it being sold to customer that the bank already knew would be unable to claim e.g. those self-employed or retired, for example.

Charge 4: Inefficient

And finally, the consumer organisation Which? pointed out that for those customers that did attempt to claim under the policy, that the length it took for the claim to be settles was far too long. Customers, despite being in desperate financial straits and having a totally eligible claim, the time taken to pay out on the policy was incredibly long and, some would say, deliberately complicated and slow.

As part of this whole process, some of the biggest, well-known and trusted UK banks have received hefty fines for poor selling tactics and less-than- honest selling methods.

If you had a loan for any purpose from the mid-1990s onwards, the likelihood is that you have been affected by the mis-selling of PPI. Contacting Payment Protection Scotland does not place you under any obligation to make a claim for PPI compensation through them… so why not find out more?

 

Lost Paperwork Could be Worth a Fortune…

With many banks adding even more to their PPI compensation pots, isn't it time you checked ALL your accounts to see if you have payment protection insurance (PPI).

But, I've lost the paperwork!

Many customers find that they are in the dark about whether they have PPI on accounts, including those that were recently closed, simply because they cannot find the paperwork. This can be a case if mislaying the documents or they were lost in a house move, for example.

So, all is lost then…?

No, not necessarily as there are a few ways in which you could possibly get 'evidence' that you had or have PPI on an account.

Start with…

Ringing the bank, lender or building society

At one time, the banks etc. were rather reticent in giving out this information but attitudes have changed slightly and banks are now eager to be seen to be helping people out with their PPI compensation claims, recognising the catastrophic impact the PPI mis-selling scandal has had on trust.

To secure a quick and efficient reply from your bank or lender, have as much detail as possible about the accounts you think you may have had PPI added to, important if you are unable to locate account numbers etc.

Be warned however, that banks, lenders and building societies can charge you a 'search fee' for this service; there is no set fee for this, with the legalities of it being the sum charged must be 'reasonable' for the service being requested.

If this yields no results…

Take a look at some of the records kept by credit reference agencies. There are only a few reference agencies in the UK and some of them will keep some of the original details involved in your loan, mortgage, credit card etc. Again, this will include a fee - usually a joining fee, followed by a regular monthly payment - and is a good way of examining the detail that various companies hold on you too!

You may find…

That your bank contacts you in the near future anyway, as well as any other company or agencies from whom you may have borrowed money. They are being told to do this by the Financial Conduct Authority to make sure that as many people as possible are made aware that they could have a claim for PPI compensation.

Many people are simply unaware or think that the PPI mis-selling scandal does not apply to them, so could miss out on thousands of pounds of their own money that they are entitled to claim back. Hence, banks, companies and lenders are being urged to write to all potential PPI compensation claimants.

But when or if you get a letter, you must act within 3 years of the date of the letter. This is not a PPI 'law' but a consumer law that gives customers 3 years in which to make a claim for 'faulty' services or goods.

There is another option: contact Payment Protection Scotland!