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Why is PPI Still a Big Deal ...

... (Even Though the August 2019 PPI Deadline is Just Around the Corner)?

Payment protection insurance (PPI) was a policy that mis-sold to thousands of people, possibly millions. Most major banks, building societies and lenders were involved in the biggest selling scam ever to have hit the British banking industry.

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But with the compensation process hitting its final year, why is PPI still such a big deal? Is there an end in sight?

Tip of the Iceberg

The issues with PPI were first raised back in the mid-1990s when a customer complained he was being forced to buy an insurance product he did not want or need.

This, along with other concerns prompted organisations, such as 'Which?' the question how and when the policies were being sold to people.

The issue was also raised in Government. PPI was expensive, it offered very little cover, it was a lengthy and complicated process to make a claim and the ways in which it was being sold to customers were also suspect when compared with consumer laws.

But these problems were the tip of the iceberg. What soon became apparent was that there were limited powers to force banks to act and change their practices.

It was a long and drawn out process but eventually, the banks backed down and the process of compensation customers began.

Growing Numbers

And the numbers kept growing and growing. From one month to the next, thousands more customers lodged complaints with banks and lenders. Banks thought that it would be a 'storm in a teacup' and that very few people would come forward to make a claim for PPI compensation.

But, people came forward in their thousands - and are still doing so today.

The scale of the problem is extraordinary. So far, £33 billion has been paid back to customers with compensation claims for mis-sold PPI. One businessman claimed back a staggering £120,000. Another businesswoman claimed back £84,000 after being mis-sold PPI policies on two business credit cards for many years.

Writing on the Wall for PPI

The August 2019 PPI deadline is looming closer and yet, in spite of all that has happened, the banks are still not getting it right. At the start of February 2019, the FCA told banks they had to write to 150,000 people whose PPI compensation claims they had rejected inviting them to claim againbecause the banks had got it wrong.Some of these customers can complain about the level of commission fees paid too, something that until the Plevin case was unheard of.

Can Payment Protection Scotland Help?

We have already helped thousands of customers to claim their money back and with a very high success rate, we are the go-to claim management company.

To find out more, just call us - there is no obligation and no pressure to continue with a claim.

 

Your Essential Guide to Making a Claim for PPI Compensation Before The PPI Deadline 2019

Making a claim for PPI compensation should not be complicated. In fact, most banks and lenders are now making a point of making the process of claiming compensation for mis-sold PPI before the August 2019 deadline as simple and accessible as possible.

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But there are still some things you need to know. This is the only guide you will ever need to make a claim for PPI compensation, brought to you by our many years of experience in helping our customers make successful claims.

Tip 1 - Gather as Much Information as Possible

We find that the cases where there is a heap of information passed on to the bank or lender tend to get a quicker response. This is because the bank or lender has a minefield of information with which they can identify you, the customer, and your account.

If you can, find the original paperwork complete with policy numbers. Also, tell them when you bought it and how much your premiums were. Tell them the name of the policyholder too.

Tip 2 - Can You remember Why You Bought PPI?

This is the crux of any compensation claim. You need to tell the bank why you believe you were mis-sold the policy.

There are many reasons why, such as;

  • you didn't realise you had bought it - it was added to your account
  • you didn't need it because you had other policies in place that covered your income, rather than a debt
  • you felt that you had to buy it, or that it came as part of a package
  • you may feel that your application for a loan etc. would be turned down or viewed more favourably if you bought PPI too
  • you were advised to buy it but can't remember what the reasons were
  • you bought your credit card or loan online and didn't realise that it included PPI because the box was already ticked

Tip 3 - Be Confident

When you make a complaint about something, you need to approach the issue with confidence. You need to be clear about what you are complaining about, why the policy was mis-sold to you and that you want your money back.

Tip 4 - No Doesn't Mean No (Not Yet, Anyway!)

If the bank refuses your claim, you can ask the Financial Ombudsman to consider your case. They don't charge for their service but there is a considerable wait as many other customers who have their PPI compensation refused are also asking the Ombudsman to deal with their case.

Tip 5 - Our No Win, No Fee is a Fantastic Service

If you need our help, we are only a phone call away. We don't charge any upfront fees and you only pay us when and if your claim for PPI compensation is successful. Why not call us today?

Claiming PPI Compensation – Is it Lot of Effort for a Small Reward?

Jenny decided to apply for PPI compensation after she saw it was on her credit card account. She had to fill in form after form, as well as talk to various people at the bank. After all that, she got £84 back.

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Is it really worth all the hassle to claim PPI compensation for such a small amount?

There are many things that put people off making a compensation claim for mis-sold payment protection insurance. One reason is the perceived 'hassle' of making a claim.

They read stories online or in newspaper that talk of customers filling in many forms, talking to bank representatives and even taking their case to the Financial Ombudsman Service only to find that when compensation is awarded, it was a lot less than they thought.

There are many factors that contribute to the total amount you receive back but irrespective of whether it is a few pounds or thousands of pounds you are due in compensation, making a claim is important because…

… It Is YOUR Money!

Let's consider the case of someone robbing someone else of cash in their purse. You are sat in a café when someone reaches forward, takes your purse or wallet and takes cash out of it. How would you feel?

Would it feel just as bad if they took £10 or £1,000? Now consider if the person doing it was known to you. And they knew that you didn't have a lot of money or that you struggle from month to month at the moment. How does it feel now?

This is how banks and lenders acted toward their customers. On one hand, your bank professed to know you and have your best interests at heart and yet, they sold you a policy that they knew you wouldn't be able to make a claim on.

Now, how you do you feel? Does it matter if it is £50 or £50,000?

… It is a Form of Mass Protest!

Not all of us are political animals but by joining in the PPI compensation 'movement', you along with thousands of other customers are taking a stand against the banks and lenders.

For too long, the banks got away with behaviour that was unsavoury and broke fair competition and selling rules. They carried on selling PPI not for a few months to a few people but over years and years to millions of people.

So far, the banks have paid out £33 billion in PPI compensation and the figure will continue to rise. It doesn't matterhow muchyou are due back in PPI compensation but the fact ofmaking a claimis more important.

Take a stand - call Payment Protection Scotland today!

Was it PPI or the Way Policies Were Sold That Was the Problem?

There are has been a lot written about PPI, the theories behind why it was mis-sold and for so long. There has been even more written on why banks and lenders were so reluctant to admit wrong-doing and to start paying compensation to their customers.

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But it begs the question - was it the product itself or the way it was sold that was the problem?

PPI - Debt-Specific

Payment protection insurance was a debt-specific product. This means that it was applied to one product at a time. Hence, if you have two credit cards and a loan, you may have had three separate PPI policies.

In some ways, if you only had one account or product, it would make sense to have one insurance product on it.

But, it was a shallow product that didn't have much depth to what it would cover. In other words, the possibility of making a claim against the policy was incredibly low. Only 15% of claims that were made paid out. This is an incredibly low payout figure, especially when compared to other insurance products.

Commission Based Selling

PPI was sold by bank staff to their customers. What was driving the high number of sales was the commission that bank staff would be entitled to if they hit and exceeded their sales targets.

What took over was the drive to meet goals and numbers, not what was right for the customers. Bank staff made commissions that handsomely supplemented their salary, as did their supervisors and department heads.

Profit Driven Sales

For the bank or lender, more sales of PPI policies meant more profits. Did you know that in some cases, up to 80% of the cost of a PPI policy was profit for the bank?

This meant that they too realised that the mass selling of PPI policies was only a good thing for them because it meant bigger and better profits.

A Combination of Both

The product wasn't great. It cost a lot of money for very little cover. It was a shallow policy, with no real depth to it and this meant very few people who had PPI were eligible to make a claim.

You would have found a policy that was much better and much cheaper too.

The fact that it was driven by sales, profits and commission and not the needs of customers is also a serious issue.

It meant that people who had no hope of making a claim on their policy carried on paying for it. they assumed that their bank or lender had their best interests at heart and as well as protecting their own investment, they were protecting them as customers too.

This was not the case. Staff and banks were driven by the large profits they could make on PPI sales and this clouded their view.

Isn't it time you claim PPI compensation? *UPDATE You have until August 2019 to claim PPI compensation and so NOW is the time to claim PPI compensation!

The Clock Ticking is for PPI Claims

There has been much written in recent months about a PPI claims deadline. Is the clock ticking on PPI claims? If it is, what do you need to do?

Time

August 2019 is the month and the year that spell the end of compensation claims for mis-sold payment protection insurance (PPI). The Financial Conduct Authority (FCA), the body that regulates the banks, lenders and financial companies have put the deadline in place, believing it is the best way forward.

In the past, many organisations, the FCA included, have not been in favour of a deadline. But with no end in sight, it felt like the PPI compensation train could run forever. Consumer apathy is named as one reason why a deadline is important.

The FCA believes that now is the PPI compensation claims must be brought to an orderly conclusion. Although the banks wanted an earlier date, they are not quite getting their own way.

What Happens Now?

Currently, the FCA is working with several creative ad agencies on the best way to create a campaign that will give people the information that they need to make a claim for PPI compensation. TV adverts have started, as have printed adverts such as billboards etc.

This needs to be an all-inclusive advert and promotional campaign as many people assume they don't have a claim because PPI applies to everyone else. What is also confusing is that people are unaware that they have a PPI policy.

PPI was often added on later and either the customer not informed, or they are not aware that the policy is a PPI-type one.

What You Can Do NOW

Rather than waiting for a glossy campaign from the FCA - they are reported to be spending up to £42 million on the campaign - you can act now.

Even if you think PPI doesn't affect you, check all your loans, credit cards and any other accounts on which you borrowed money. This also means store cards for well-known high street stores and products such as car finance.

PPI may be listed on the original paperwork or, it may have its own separate booklet or schedule. It may not be called PPI either. Some banks and lenders gave their protection policies a different name.

Essentially, you are looking for an insurance policy that says it will make repayments on the account in the event you are unable to do so. It might go on to say why it will do this - because you are too ill to work, or you have been redundant etc.

Make a PPI Claim

If you have PPI, you could be entitled to a refund. This means telling the bank the reasons why you were mis-sold the policy.

Our expert team can help. Why not call Payment Protection Scotland today for a no obligation chat?

 

WHY Was PPI Mis-Sold to MILLIONS of Customers?

And why was is allowed to continue for so long? Both are big questions with the answers complex. But if you have a PPI policy, the likelihood is, you ARE entitled to compensation. With the PPI compensation deadline only five months away, now is the time to start your claim.

Why

Wrapped Up in The Law

Even though it was spotted back in the mid-1990s by consumer groups and some politicians, the issue of stopping banks from mis-selling PPI policies was hindered, in many respects, by the law.

In the UK, the Government does not 'interfere' with the market by dictating what can be sold and at what price. This 'free market' scenario means that when there are issues with how products and services are being sold, the onus for change must come from the customer.

But thousands upon thousands of customers were blinded by loyalty. Why on earth, they questioned, would their bank, an institution they had been with for decades, sell them a policy that was not only over-priced but of no use to them?

It seemed too ludicrous a question to ask.

But that is exactly what happened.

The Way PPI Was Sold

PPI was sold in different ways but they were all essentially underhand. People often felt they had to buy it so that they got the loan they needed. Or, people were led to believe that it was a fantastic policy that really suited their needs.

But, there were many problems;

  • Joint loan holders were surprised to find that PPI only covered one of them, usually discovering this vital piece of information at a time they needed PPI most.
  • Other people attempted to make a claim but were told they had to wait 6 months or longer before the policy kicked in, a fact they were unaware of.
  • People were not told of the exclusion under the terms and conditions, hence had no idea they couldn't claim if they would no longer work due to a mental health illness or a 'bad back'.
  • PPI was also very expensive, offering very little cover to very few people but cost a lot of money.
  • The process of making a claim was long and complicated. It took over 12 months for a claim to be processed, with the chances of it being a successful claim were very slim - only 15% of claims against PPI policies were successful compared to 80%+ of car insurance claims.

Many Changes

There have been many changes in the wake of the PPI mis-selling scandal. Banks are no longer allowed to sell additional products at the same time a customer buys a loan or credit card etc.

There have been bigger changes too, such as the Financial Conduct Authority, the 'new' regulator of the banks and lenders. It is a body that now has more powers to control bank behaviour and compel them to put things right.

Do You Have a PPI Compensation Claim?

If you have had a loan or credit card from the mid-1990s onwards, the likelihood is you were mis-sold PPI. And that means you have a claim for PPI compensation - call us today!

10 Things You Need to Know About Making a PPI Compensation Claim

We've rounded up the ten top facts from our work as a claim management company specialising in PPI compensation claims. And this is what we found…

Ten

1. You can still claim even if you have lost the paperwork

It may seem like an inconvenience but if you know which company or bank your loan, credit card, store card and so on, you can ask them for a copy of the paperwork. They may charge a fee.

2. If the firm has gone bust/or been bought by another bank or financial company, you can still make a claim

If the lender or financial company was regulated by the FCA, you can make a PPI claim through the Financial Services Compensation Scheme (FSCS). This acts as insurance for covering the liabilities of finance companies.

3. You can take further steps if the bank rejects your claim

If the bank rejects your claim and you are unhappy with this decision, you can refer your case to the Financial Ombudsman Service. You should do this within 6 months of the bank refusing your claim.

4. PPI claims do not affect your credit rating

For many people, a poor credit rating stops them doing many things financially but claiming PPI compensation is not one of them. And it won't make your credit rating any worse but it could improve it.

5. You can make a claim for PPI on a loan that has been paid off in full

Providing the last payment was within the last 6 years, you can make a claim for PPI compensation on the loan.

6. It may be possible to make a claim on a loan with or without your ex-partner's permission

Some banks and lenders will allow you to make a claim on your own but in other cases, you will need to make a claim together.

7. PPI compensation settlements are tax-free

Compensation is you getting your money back and thus, in most cases, you don't need to pay tax on it. However, everyone's tax position varies so always check with your tax adviser, if you have one, or your accountant.

8. If you were self-employed and sold PPI, you are entitled to claim

The terms and conditions relating to PPI and self-employed status make it a product you would unlikely to have bought if you had known about them. Thus, you have a claim.

9. PPI was often sold as 'compulsory'

But it wasn't. In fact, you don't have to buy any other product from the bank or lender when taking out a loan. They may insist you have insurance but you can shop around and get the right product at a price that suits you.

10.The PPI deadline is only a few months away

If you want to claim PPI compensation on a policy that was sold to you before the summer of 2017, you must lodge your complaint by midnight on August 29th 2019 or risk losing out.

We can help you make a claim for PPI compensation. Find out in one phone call - call Payment Protection Scotland today.

Is the PPI Campaign Working?

When the news leaked that the FCA had started to spend part of their £42 million budget on the creation of a hard-hitting, leave-no-stone-unturned marketing campaign to encourage consumers to make a claim for PPI compensation, not many people were convinced that it would work. But the FCA has persevered. Is the message getting through about making a PPI compensation claim before August 2019?

Campaign

Wide-scale consumer campaign

The FCA has paid the advertising agency giant M&C Saatchi around half a million pounds as part of their plans to implement the PPI August 2019 compensation deadline.

The FCA promised a promotional and communications campaign to encourage people with genuine PPI compensation claims to claim their money back, a key component of introducing the deadline, a move that was unpopular with some consumer groups.

The total cost of the communications campaign is thought to be around £42 million and the initial payment to Saatchi is for "campaign strategy and creative development work undertaken". In other words, it set the parameters and the basis for a future promotions campaign.

It is understood that the FCA has engaged the services of advertising agency Manning Gottlieb to create the actual adverts and campaign but are the adverts working?

How is the project being funded?

The FCA has been at pains since its creation as part of industry-wide changes since the PPI mis-selling scandal, to hold the banks and lenders to account.

The budget for the advertising campaign is thought to be coming from a levy on 18 firms that have reported over 100,000 PPI complains about advising, selling and arranging PPI from 1 August 2005 to 1 August 2015.

When will the campaign start?

Although banks favoured a 2018 deadline, the FCA was not to be rushed and the August 2019 was decided on.

The PPI campaign was due to begin around June 2017, tying in with the two-year 'notice window' that consumers must be given as part of setting a firm deadline.

In December 2015, the FCA announced that it had received a large volume of responses to its original proposals around PPI and thus, many people think, it pushed back the date from spring 2019 to late August 2019, a move that irritated the banks.

Still a big problem

PPI compensation claims are increasing. The FCA publish monthly PPI figures and since the deadline was announced, more claims are being made. But there is still a possibility that a tsunami of PPI compensation claims could happen in the weeks up to the deadline.

The Financial Services Ombudsman is also still working hard on PPI complaints, with around a third of their annual workload being PPI cases.

Do you have a claim for PPI compensation? Find out today with Payment Protection Scotland.

PPI Mis-Selling Changed The Face Of UK Financial Industry

There is no doubt that the wide-scale mis-selling of payment protection insurance (PPI) in the UK has changed the face of the financial services industry.

Piggy -bank

PPI continues to be a growing issue for consumers. The Financial Services Ombudsman (FOS), receives on average 1,500 new cases each day, a figure that could increase with the PPI compensation deadline only a few months away.

FOS has also said that they are finding PPI cases being referred to them are increasingly complex but are still finding in the case of the consumer in the majority of cases.

PPI is the most complained about financial product that the FOS has ever received.

What to do to claim PPI compensation

Contact your lender

The first step in claiming PPI compensation is to contact your lender. You can either do this yourself or by using an intermediary, such as Payment Protection Scotland.

We specialise in making PPI compensation claims, and nothing else. So you know when you come to us, you are coming to an expert company.

Refer your case to FOS

If your bank or lender refuses your claim for PPI compensation, you may be unhappy with this decision. You can ask FOS to take a look at your case and decide if they think you have a claim for PPI compensation.

If they do, they will tell your bank to compensate you and how much.

They are independent of government and more importantly from the banks and lenders at the centre of the PPI mis-selling scandal.

Takes time

Due to the large number of cases being referred to FOS, you may find that your case will take some months to resolve. The complexity and nature of your claim will also have an impact on how long it will take to resolve.

What the FOS look at when decided whether to uphold the complaint, they will examine two areas:

  • Did your bank or lender give you clear, fair information, that was not misleading in any way about the purchase of PPI?

In other words, your bank or lender should have given you plenty of information, that was clear to understand and highlighted any shortcomings in relation to your circumstances.

  • Did the bank take suitable steps to ensure PPI was suitable for your needs?

A simple example would be anyone that had a pre-existing medical condition should have been made aware of this limitation.

FOS then make a decision based on evidence and in most cases, it has to be said, they do find in favour of the customer.

We can help you not only decide if you have a claim for PPI compensation but also submit your claim.  So why not call Payment Protection Scotland today?

 

PPI Claim Myths

Ever wondered if you everything you read about PPI and compensation claims is true? Find out here…

Myth

If you knowingly bought about the insurance, you can't make a compensation claim

Successfully claiming back PPI lies around proving you were mis-sold the insurance on your loan or credit card etc.

One mis-selling technique, for example, was that banks implied PPI was mandatory. In other words, you had to buy it in order to get the loan or it was 'part of a package'. Thus, many people knowingly bought the product by signing on the dotted line. But this is unfair selling and one that can be put right by claiming compensation.

There is a central PPI database, so I should get an automatic refund

There is no such thing but this tactic has been used by less reputable cold-calling companies to lure people into making a claim with them.

We do not engage in this type of activity and the information they have is marketing information they have paid for. This consists of name and phone numbers and nothing more.

Your bank or lender is NOT allowed under the Data Protection Act to give away or sell sensitive financial information about you. So, if someone calls you telling you they already know how much you are owed, you know that this is not true.

It is a lot of hassle for very little compensation

If you don't try, you'll never know!

Thousands of people in Scotland and all across the UK had loans or credit cards with several of the high-street banks and lenders.

Check all paperwork and statements and you may be surprised to find you have some form of payment protection insurance (it may be called something else other than PPI). 

Some customers have had to insist that they get their PPI compensation but the majority of customers were given their PPI premiums back, quickly and with minimum fuss. The majority of claims are usually settled within 8 to 12 weeks.

No paperwork means no claim

Not necessarily. If you had a credit card account, paid it off, then cut it up, you can still look to make a claim. Many people do not keep loan paperwork once the loan has been repaid but this doesn't matter.

Call us and we'll talk you through the options.

Making a claim will reflect badly on my credit rating

Making a PPI claim does not adversely affect your credit rating at all.

If you have been mis-sold PPI then you are entitled to compensation and will not affect your relationship with your lender, even if you still have the current product with them. Frankly, it could be PPI premiums that put your account in arrears in the first place.

To discuss your claim, call Payment Protection Scotland today for a no obligation, no pressure chat.