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PPI Compensation to End SOON!

If you are yet to make a claim for PPI compensation then you need to make a decision and move fast. The PPI 2019 deadline is only a year away but there are still thousands of people yet to claim. Are you one of them?

The End

For so long, the issue of a PPI deadline was a sensitive one. But it now seems that the Financial Conduct Authority (FCA) want to take a more conciliatory tone with the banks and draw a line under the PPI mis-selling saga.

The case FOR a deadline

Larger banks and lenders have been hit hardest by the PPI mis-selling scandal.

With mis-sold policies being accountable for 80% of their annual profits for several years running, they have the most to lose, it would seem, when it comes to paying customers back.

They canvassed the Financial Conduct Authority and the Financial Ombudsman for some time for a PPI compensation deadline to be imposed.

But for many years, the FCA were having none of it. But its changed it mind. Why?

The case AGAINST a deadline

Not all banks and building societies were in favour of imposing a deadline. Smaller lenders said they needed more time to balance their books.

A sudden flurry of claims for PPI compensation, they said, could really sink their banking ship.

They preferred spreading out the claims. Some years on from this initial argument, smaller banks and lenders were confident that they had serviced the majority of PPI compensation claims. But have they?

Why has a PPI compensation deadline been imposed?

The FCA were concerned about a number of things but at the top of the list was what they termed as 'customer apathy'.

The longer the PPI mis-selling saga was allowed to linger, the more customers would become apathetic. Thus, they decided to draw a line under it.

Some would argue that this was the only favour they did the banks;

  • A longer deadline- banks wanted a short deadline imposing but from the time the FCA announced the dealing date - 29.08.2019 - it was nearly three years away.
  • Marketing campaign- to accompany the deadline the FCA has insisted on a marketing campaign. Costing £42 million, the big banks are footing the bill.

Making a claim with Payment Protection Scotland

Here at Payment Protection Scotland we have so far helped thousands of people to successfully claim PPI compensation.

With a high rate of success, we have claimed back thousands of pounds in PPI compensation - isn't it your turn?

If you think you have a claim or would like some more information, call us - you are under no obligation to continue with a case so you have nothing to lose…

The Information You NEED to Claim PPI Compensation

If you are considering claiming compensation for mis-sold PPI, then there are certain pieces of information you MUST know before you submit your claim. Here, we walk you through these important steps are.

Information

Step 1 - Proof

Even though the Financial Conduct Authority, the banking industry regulator, and the Financial Ombudsman, who helps out the consumer when they have complaints about banking and financial products, know that hundreds of thousands of customers are affected by mis-sold PPI,the customer must prove they were mis-sold it, as set out in consumer law.  

Step 2 - Understanding what the law says

It says that in order to claim back PPI compensation - or any kind of compensation for mis-sold financial products and others - the onus is on the consumer, in other words YOU, to prove that it was mis-sold to you.

Step 3a - What proof of mis-selling if required?

  1. You need proof that you were sold PPI in the first place and that it was on your account.
  2. You must show you were paying for it and that your account has been active in the last 6 years.
  3. You could prove you had PPI on a loan etc. by highlighting it on statements or, if it was part of your monthly payment, you may have a separate document that has a policy number on it.

Step 3ab - You know need to show WHY you were mis-sold it!

There are many reasons for this…

  • It was added to your account without you knowledge or consent
  • The bank knew your circumstances and still sold it to you anyway, knowing full well the terms and condition did not cover you
  • You were unemployed, self-employed or retired at the time
  • You were given the impression that you had a better chance of securing your loan if you took out the policy
  • You were told it was compulsory or given the impression it was
  • You were not told you could shop around and get a better deal
  • You were advised to take out the policy but you were not told why, nor given any written details as to why this policy was right for you
  • You were not told of the exclusions under the policy, such as some illnesses were not covered
  • You were not told that any of your pre-existing medical conditions were not covered under this policy
  • You bought your credit card etc. online and did not realise you needed to opt out of the PPI scheme by unticking a box
  • You felt pressured to take the policy…

It could be one or a combination of the above reasons!

Need help? Payment Protection Scotland has successfully helped thousands of people claim compensation for mis-sold PPI; we could help you…

Do You Need PPI?

This article was first published in June 2013.
Five years on, we thought we would take an up to date look at some of the PPI related topics we were talking about back then. We've updated this article so you can decide if PPI is still a valid insurance product for you.

With the payment protection insurance (PPI) selling scandal still in the headlines, it can be difficult to see if there is any advantage to having this type of policy. And who would have thought that five years since the publication of this post, we would still be talking about PPI compensation.

Hands

The problems with PPI

There were many problems with PPI;

  • the way in which the product was sold
  • poor value for money
  • the slow claims process
  • and the low pay out rates for successful claims

If you are taking out a loan or credit card, and PPI is offered to you, how do you know whether to accept it or not?

Is PPI suitable?

Back in 2013, when you took out a loan etc., you would also be offered other products during the process, such as PPI. Today, this practice is no longer acceptable with all financial companies having to wait 7 days or more before they can offer you insurance products and so on.

PPI was not suitable for many people because it was expensive, more so when you consider the low level of cover it offers.

Before signing up for PPI - or any insurance product - consider it carefully by asking yourself key questions:

If you lose your job, can you afford to keep up repayments on the loan?

Some people have savings or other policies that may be of use should this happen. For example, do you have;

  • Life insurance
  • Another type of illness policy such ascritical illnessorincome protection policies
  • Benefits such as sickness or redundancy benefits with your employer
  • An insurance combined with your mortgage

If you do have the above, then a PPI policy may not needed.

How much will the policy cost?

The cost of a PPI policy can be high, with very little level of cover offered in return. It can significantly add to your loan repayments or credit card debt. As with all financial products, it really does pay to shop around.

How long does the policy pay out for?

Many PPI policies only payout for a set length of time, for example, for the first 12 months of any claim.

Most PPI policies had a 'waiting period' when it comes to making a claim, so you may find that you will still have to meet repayments for a month or so, before the policy 'kicks in'.

Are there any exclusions?

Many customers seeking PPI compensation are doing so as a result of them not being made aware of significant exclusions under the terms and conditions of the policy. If you have a medical condition, for example, you may find that it will be excluded from any claim that you may make. If it is included under the policy, you may also find that this substantially increases your policy premium.

The advice in 2013 remains the same in 2018 - when it comes to buying any financial product, seek the advice of an independent financial advisor first.

PPI – The Facts and the Fiction

There is a whole swathe of information and disinformation about PPI and how to make a claim, that we thought we would take a look at PPI, the facts and the fiction.

Truth

Fact or Fiction? It affects everyone

It is certainly true that the number of customers affects by PPI mis-selling is huge, probably because every major bank and financial company in the UK was involved in some shape or form.

The likelihood is, if you took out a loan, credit card, mortgage and so on since the mid-2000s, you were probably affects.

Fact or Fiction? It is complex to claim back PPI

You do need to prove you have PPI on your accounts and that you were mis-sold the policy in the first place. There are many mis-selling reasons and a quality company such as PPI Scotland can help you with this.

Fact or Fiction? There's a deadline and its looming fast

True, the PPI deadline has been set for 100.59pm on Thursday 29th August 2019. If you were mis-sold PPI before summer 2017 and want to claim your money back, then you MUST do so by this date. At midnight, it will be too late.

Fact or Fiction? If the bank says NO, then that's it...

NO, you have one more avenue to explore and that is with the Financial Services Ombudsman.

Although they are finding in favour of the customer in the majority of PPI compensation cases, the high numbers of cases being referred to them is ever-increasing. Dealing with cases in chronological order may mean that your case will not be resolved for 12 months or more.

Fact or Fiction? It is difficult to claim PPI if you are in debt

NO, the process of claiming back PPI compensation is the same whether you are in debt or not.

What does differ, is what happens to the money if your claim is successful. Depending on the level of debt or arrears and whether you have an IVA arrangement etc., your PPI compensation may go towards decreasing the final amount owing.

Being left debt free is better than having to pay back money that should never have been taken off you in the first place.

Why use Payment Protection Scotland?

As a claims management company, we specialise in dealing with PPI compensation claims for all customers based across Scotland and with accounts from all UK banks, lenders and financial institutions.

If you cannot find obvious evidence of PPI on your accounts, we may still be able to help to obtaining a copy of the original paperwork from your bank.

We cannot make claims on behalf of customers where it cannot be shown that there is PPI on the account.

If you need help, or have questions that need answering, why not contact us here at Payment Protection Scotland? We will probably know the answers...

PPI Compensation – the end is in sight

It is a saga that has been running for years.

Just when you think the whole sorry episode of PPI compensation claims is beginning to fade, something comes along that reignites the smouldering embers.

But the announcement of a PPI deadline August 2019 now means that the end is in sight. And it is looming fast. Have you lodged your PPI complaint yet?

Theend

More money in the compensation pots

Banks have been adding more money to their PPI compensation pots annually since the compensation saga started some years ago.

Although statistics and data suggest that the number of claims were slowing but the numbers of people claiming PPI compensation is once again on the up.

And with the Financial Ombudsman Service (FOS) also saying that they are dealing with more complex cases too.

The end is in sight

The Financial Conduct Authority announced a deadline of August 2019 for PPI complaints for policies sold before the summer of 2017.

If you miss the deadline of 11.59pm on Thursday 29th August 2019, you may be waving goodbye to thousands of pounds of your money. Why should the bank keep it?

What you must do NOW

Don't wait for the PPI 2019 deadline;

i. Check all your accountsfor an insurance product that promises to make repayments on the loan etc. should you be unable to do so for a variety of reasons that ultimately means you have lost your income

ii. It may not be called PPI as many organisations and the like called it by a different name

iii. Cast your mind back to when or why you were sold this PPI product - if you cannot remember being sold the product, this does not mean that you do not have the case (quite the opposite in fact!)

iv. Some people think that because they agreed to PPI, that they do not have a claim - in many successful cases of claiming PPI compensation, people got their money back, simply because they had been advised wrongly to buy the product

v. Check the terms and conditions of the policy - are you covered by the policy? Are any pre-existing medical conditions covered by the policy, as these are the most likely conditions that will impinged on your ability to earn your income etc.

Have you found a PPI type policy?

Are you unsure if you have a claim? Not sure how to go about making one?

Payment Protection Scotland has been helping customers to make a claim for mis-sold PPI for any years. We have a high success rate and a proven track record.  We spend time checking through accounts with customers and determining a strong case right from the start.

When you call us places you underno obligationto continue, so you have nothing to lose!

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?

PPI and You

Yes, YOU! You really may have a claim for compensation after being mis-sold PPI. Have you really checked all your paperwork for signs of payment protection insurance? If you are one of the many thousands of customers adamant you do not have PPI, you MUST read on…

you

There are many reasons why PPI was mis-sold to people from ' your application will be viewed more favourably if you buy this insurance' to ' it really is the best product for you…'.

But there are still people who think the whole PPI mis-selling saga does not affect them and with the PPI deadline 2019 looming fast, they could be in danger of leaving thousands of pounds of their money slip through their fingers.

"I wouldn't get caught out!"

This is a common misconception and is certainlynota reflection of you.

Some people are of the opinion that we, as customers, have a responsibility to check things out and do our research beforehand.

For example, knowing that you do not have to buy another product alongside the main product is one consumer fact - people are aware of this now, thanks to the PPI mis-selling scandal.

But, when you are desperate for the mortgage to buy your first home or applying for a loan to fix the boiler and invest in a new roof, you would have done anything to secure the cash. And the banks knew this, taking advantage of the whole situation to sell you something you possibly didn't need or really want.

"I know I don't have it"

Again, we've heard this many times but then customers checked again and spotted something suspicious lurking amongst the finer print.

Mentions of insurance, a policy or product that said it would make repayments in the event that they couldn't is PPI!

PPI is a generic name - in other words, an insurance policy of this kind could be called anything from 'loan care' to 'card care' and a whole list of other names.

"PPI - nope, no one mentioned that"

Yes, this may be true. PPI was added, in many cases, to accounts and loans after the main product had been successfully sold to you.

In other words, a few months later you may have received a marketing letter, or a phone call in some cases, telling you about a great new product. You were told it would make repayments on your behalf and, that this great policy was being added to your account.

It gave no option to opt out or that it was even an optional thing. Because, the bank said, it had your best interests at heart this was the right policy for you.

"I applied online…"

I did it online so no one sold me anything

Right at the bottom of the pages and pages of small print was a tiny box, already ticked and this means you were automatically enrolled in the PPI policy. This practice has stopped now as the regulatory authorities think this is wrong.

Still think you don't have a claim PPI compensation?

PPI Checklist – Proving You Were Mis-Sold PPI

Claiming compensation for mis-sold payment protection insurance (PPI) is not too onerous a task in many cases, but you still need a certain amount of information to be able to make a claim. Use our checklist to find out more.

checklist

Proof

Even though the Financial Conduct Authority, who regulate the banking industry, and the Financial Ombudsman, who help out the consumer when they have complaints about the banking industry, know that there are hundreds of thousands of customers out there with genuine complaints about PPI compensation, you still have to follow consumer law.

What does consumer law say?

It says that in order to claim PPI compensation - or any kind of compensation for mis-sold financial products and others - the onus is on the consumer to prove that it was mis-sold to you.

Step 1: Proof you have PPI

  1. You need proof that you were sold PPI in the first place and that it was on your account.
  2. You also need to show you were paying for it and that your account has been active in the last 6 years.
  3. You could prove you had PPI on a loan etc. by highlighting it on statements or, if it was part of your monthly payment, you may have a separate document that has a policy number on it.

However, proving you have PPI is only one part of the process

Step 2: Proof PPI was mis-sold

There are many reasons for this, such as;

  • It was added to your account without your knowledge or consent
  • The bank knew your circumstances and still sold it to you anyway, knowing full well the terms and conditions did not cover you
  • You were unemployed, self-employed or retired at the time
  • You were given the impression that you had a better chance of securing your loan if you took out the policy
  • You were told it was compulsory or given the impression it was
  • You were not told you could shop around and get a better deal
  • You were advised to take out the policy but you were not told why, nor given any written details as to why this policy was right for you
  • You were not told of the exclusions under the policy, such as some illnesses were not covered
  • You were not told that any of your pre-existing medical conditions were not covered under this policy
  • You bought your credit card etc. online and did not realise you needed to opt out of the PPI scheme by unticking a box
  • You felt pressured to take the policy…

It could be one or a combination of the above reasons!

Need help? Payment Protection Scotland has successfully helped thousands of people claim compensation for mis-sold PPI. But hurry, the PPI deadline is ticking.

Quick PPI Questions and Answers

Have a quick query about PPI that you need answering? We have collated some of the questions we are asked and asked our team to come up with quick answers to them.

Questionsandanswers

How far back can a claim be made? I had a car loan a few years, with PPI - will the bank contact me?

The bank may contact you as they are being 'advised' by the Financial Conduct Authority to do so. The easy rule for PPI compensation claim is that if the loan was active in the last 6 years (that is, you were making payments on it), then you could claim. However, there are always exceptions to the rule so if you have a case, why not make a claim?

We have a £7,000 personal loan with Lloyds and were mis-sold PPI on it. How much compensation would we be entitled to?

Without knowing all the details, it would be difficult to be completely accurate but between £1,500 and £2,000 would be a guesstimate. This includes interest at 8% but you could be entitled to more with fees and costs added. And then there is the possibility of commission payments on top.

I am still paying for a PPI insurance product on my credit card with a well-known high street store that also offers banking facilities. I don't recall agreeing to it. Do I have a claim?

The first thing you need to do is look at the details of PPI and see if it covers you. You may also want to look online to see if you can get a better deal from another insurer. Lenders rarely sell PPI these days and so we would need to know more detail about this.

I have an EGG credit card, can I claim?

Yes you can. EGG was one of the companies fined in the past for slow payments etc. so always worth striking while the iron is hot. But EGG itself no longer exists but Barclays bought the company and so they are responsible for refunds.

I have been made bankrupt, can I still claim compensation for mis-sold PPI?

Yes you can, although there are circumstances that you will need to be aware of. For example, you may not receive compensation if you claim is successful, as the money may be used to pay off your debts etc. Cases of debt and bankruptcy when seeking PPI compensation need not be complicated but it pays to get thorough advice on the best way to proceed from an independent source and debt specialist.

We bought a new car through a financial firm who told us that PPI was essential, or we couldn't have the car. Is this mis-selling?

It sure is! The purchase of PPI has never been compulsory!

I closed my credit card and paid it off. Could I still claim?

Whether the account is closed or not is irrelevant. You can claim compensation for mis-sold PPI if it was actually mis-sold to you and the policy was active in the last 6 years.

Your 3-Minute Guide to Claiming Compensation

It is still possible to claim PPI compensation but there is a deadline looming. August 2019 may seem a way off yet, but you need to make a decision, and make it now, about whether to claim your money back or not. Can you afford to lose out?

Guide

What is PPI?

It is aspecific type of insuranceproduct that was sold alongside credit agreements including mortgages, personal loans, credit cards, hire purchase agreements, car finance, catalogue accounts, store cards and many other kinds of credit.

It was designed to protect you as the policy holder that in the event that you were unable to make your monthly repayments on the loan, the policy would do it for you.

But was mis-sold thousands of times over to thousands of customers and you could be one of them.

Why is the PPI compensation saga still running?

The reason why the saga has lasted so long is linked to many reasons - one is the fact that34 million PPI policieswere thought to have been sold in the UK. For many customers, they don't realise they have a claim for compensation, as they didn't know they had been 'sold' it in the first place.

The mis-selling problem

Theway in which the PPI policy was presentedto you at the time it was sold may be an indication of whether you were mis-sold it or not.

In some cases, the debate as to whether you were mis-sold the product or not is can actually be complex thus it is important that, if you are unsure, you seek advice.

However, in the main, many customers were…

  • Told the purchase of the PPI policy was compulsory
  • NOT told the limitations, terms, conditions and exclusions of the policy
  • Not told of their eligibility to claim via this policy - in other words, many people were unable to claim on the policy, as they simply were not eligible. Would you have bought it, knowing this?

But the worst case scenario was when some customers, clearly making an emotional decision to borrow money - how nervous were you about securing car finance for the much-needed more modern, reliable family car? - were told that they were more likely to be accepted for finance if they took out the policy.

Claim it back

Don't let the bank or financial institution get away with it. Make sure that you check all the necessary paperwork today for any signs of PPI - should it be on there? Does it cover you for repayments on the loan? Are you eligible to claim?

If not, the chances of you having a claim for compensation are high so why not let Payment Protection Scotland help?