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Archive for tag: What Does 2015 Hold for PPI Claims

What Does 2015 Hold for PPI Claims?

Will time be running out? Will people get all their money back? Could anything else possibly go wrong for the banks?!

The saga has gripped the nation; after reviews and legal intervention, the banks and lenders in the UK were told they had mis-sold payment protection insurance (PPI) to customers and they were to receive their money back… every last penny of it.

After a few false starts, it seems that the PPI compensation process was going smoothly until someone spotted something - not everyone was getting the full amount back!

So, could 2015 see another twist to the PPI mis-selling saga?

Possibly. In fact, it has already started.

The problem is this: during 2012 and 2013, it seems that not everyone got the full amount back that was owed to them. Also, other people were told they didn't have a claim, hence received no cash.

Some of these people took their cases to the Financial Ombudsman Service and received compensation but, it seems that the problem runs deeper than what people thought.

Is it alternative redress?

Yes and no. Some people were hit by the 'loophole' that some banks chose to exploit in which they paid the difference between the cost of their policy and the next cheapest policy. This is now a frowned upon tactic as the purchase of PPI was not compulsory hence, every customer, if they have an eligible claim that meets the necessary criteria, is entitled to all their money back.

The cases from 2012 and 2013 might include some alternative redress ones, but it seems that the banks and lenders, in an attempt to preserve their profits as much as possible, have not been compensating customers the full amount they are entitled to…

… by conveniently forgetting the fees and charges that may have been applied to the account as a result of the account being pushed over the agreed credit limit, missed payments etc. due to the addition of PPI on the account.

So, what does this mean for 2015 and the PPI mis-selling scandal?

It means, quite simply, that it is not going away.

The Financial Conduct Authority, who regulate the financial industry, are telling the banks and lenders that they will need to look at ALL the cases from 2012 and 2013 again. If they find that customers have been under-compensated - or, in many cases, their compensation claims rejected - they will need to redress the balance.

Was your claim settled during 2012 or 2013? If so, you may be owed more…