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How do you know you received the right amount of PPI compensation?

There have been many twists in the PPI mis-selling saga, all of which have shown the true rottenness of the whole PPI mis-selling scandal. You would think the banks and lenders would be jumping through hoops to sort the whole sorry mess they created.

But there have been issues of banks and lenders not compensating people the right amount. What are the issues and have they affected you?

Issue 1: Alternative redress

This twist reared its ugly head a few months ago, with some banks deciding that they would try and cut their compensation bill by using this principle. It is a legitimate form of compensationin some cases although the Financial Conduct Authority has declared it is not suitable in the case of PPI compensation.

Alternative redress is when a financial product has been sold at an inflated price to a customer. This was a major problem with PPI as a policy. There was no like-for-like insurance policy and effectively, without competition, there was no need for banks or lenders to keep the price of PPI low.

In other words, a customer would pay a lot for PPI, over and above its nearest like-for-like policy. Hence, a PPI product sold to a customer at a total cost of £3,000 is considered an over charge, when the exact same product is available for a lot less.

Alternative redress is when you receive back the difference between these two products, meaning you will get some of your money back, but not all of it.

What the FCA say…

PPI is that it is not - and never has been - a compulsory purchase and, in many cases, the customer was not covered by the policy. It applies mainly to the policies sold in one lump sum, known as single policy PPI and are now no longer eligible for sale since the PPI scandal broke.

Issue 2: Not reimbursing administration charges, all of the interest etc.

The second, more recent twist has been the fact that banks and lenders have not been compensating some of its customers the full amount.

Facing an investigation and possibly a heavy fine, it seems that one financial company, in an effort to maintain its profits, has been paying back the premiums customers are entitled to - but have negated to pay back compensation (which can considerably increase the compensation claim), along with any administration fees they charged to 'set up' the policy.

Banks and lenders do charge customer set up fees for various products and they can vary significantly between companies, with PPI being no different. So, not only did they sell you a product at an inflated price that you did not need, they charged you for doing so!

Get all your money back! Get Payment Protection Scotland on the case…

Inundated by PPI ‘Scam’ Texts?

Not sure if they are genuine messages from people really willing to help? We'll help you work out when a PPI text is a scam by answering straightforward questions.

There are many people who profess to being experienced specialists in the field of PPI compensation. As a result, there are thousands of people who receive weekly, sometimes daily texts relating to their PPI compensation claims.

The problems are many and varied when it comes to these texts; on one hand, financial experts are telling us that the majority of us will be entitled to PPI compensation and should make a by the PPI deadline August 2019. But, on the other hand, these texts can be a nuisance as well as wrong. They are a fishing exercise, a chance to tray and hook custom.

These are the questions you need to ask yourself…

How does a company know how much I am entitled to?

In short, they don't.They hope that by making their text sound convincing and telling you they know exactly how much PPI compensation you are entitled to, you will call and they can reel you in.

  • No one knows if or how much compensation you are entitled to until any PPI that you have on your accounts has been assessed, and the calculation applied.
  • No company can find out for you on your behalf without you giving express permission for this to happen, in the form of written authorisation. Any firm who does this without your consent is effectively stealing your data, a criminal offence under the Data Protection Act.

Is everyone entitled to PPI compensation?

It is true to say that there are many thousands of customers who were duped in buying and paying for an insurance policy that was little use to them. The scale of the mis-selling of PPI is huge. The size of the mis-selling scandal has caught everybody off guard, from the banks themselves through the financial industry regulators.

  • PPI compensation is not automatic. You still need to show you had a PPI policy and that it was mis-sold to you. Many less reputable and experienced companies did, in the early days of PPI compensation, submit a large number of ineligible claims.

But could I be owed money on a policy that I didn't know I had?

Again, some companies are fishing for PPI compensation work BUT, what you must remember is that some customers were 'sold' PPI without them knowing.

In other words, PPPI was an addition to your account after you signed on the dotted line for your loan, credit card etc. so it might be that you have no idea you were mis-sold the product in the first place.

Contact a professional and successful company with an enviable reputation for getting results - call Payment Protection Scotland now!

PPI and ‘Advised Sales’

Payment protection insurance (PPI), once the golden ticket for banks and lenders to big profits and handsome commissions, is now a problem that they are desperate to see the back off. And with the August 2019 PPI deadline being in the offing, they could finally have their way.

And just as people think that it is going away, PPI has a habit of making a return - a reminder, perhaps, of the thousands of people yet to claim back their PPI compensation. Are you one of them?

Mis-selling 'reasons'

There were any reasons why PPI was mis-sold, from knowing the person would not benefit from the policy but selling it to them anyway, to banks simply adding it to accounts at a later date.

However, there is one mis-selling reason which seems to confuse people and one that is a bone of contention between the banks and the customer; inevitably, should an amicable and favourable solution not be reached, you can refer you case to the Financial Ombudsman Service (FOS).

An advised sale is one in which the bank or lender has expressly recommended the product as being suitable for you and your circumstances.

What was the problem with advised sales?

The rules have now changed as a result of the confusion and complexities between advised sales on ALL financial products, not just those that are PPI bases products.

The bank or lender must now tell you, in writing, why the product in question is suitable for you and why they are advising that you purchase it.

With PPI, this did not happen. Some banks or lenders may have provided this information in written format but more often than not, these types of sales were carried out over the phone.

Sales calls or advise over the phone?

There is a difference between a 'sales' call and advising a customer that the product if right for them, but for those customers attempting to claim their money back for PPI, the banks are refusing. Their reasoning is that the customer was not advised and the customer did not have to purchase the product.

The calls, the banks say, were marketing calls with the customer given all the necessary information to make an informed choice as to whether this was the right product for them, or not.

However, the Financial Ombudsman Service who has been looking into thousands of PPI cases of this kind, have not always agreed with the banks.

The argument for PPI compensation in these cases have hinged on how much information the bank representative knew about YOU before they called. For example, a clear cut case is selling PPI to someone they know is self-employed; PPI was not the best product for this person but the marketing call failed to amplify to the customer that they were not as well covered by this policy as they thought they were…

Advised sale or not?

We deal with all genuine PPI compensation claims and can help you, no matter how you were mis-sold the product.

Making a Claim for PPI compensation – A ‘How to’ Guide

Is there a pot of your money that someone has taken and hidden from view? If so, how do you know how to find it and how to claim it back.

This is exactly what PPI compensation is - understanding that your bank or lender took the money from you and are effectively 'hiding' it. But with this guide, you will find it again and enjoy a welcome financial windfall.

PPI - what is it?

Payment protection insurance (PPI) was a product that was mis-sold to thousands of people. It is likely that you are one of those customers, even though you may not know it yet.

This insurance product is designed make repayments on loans, credit cards, mortgages etc., should you be unable to do so because you lost your job or were too ill to work.

In some ways, this sounds like a sensible precaution. After all, who wouldn't want to protect their home, their family and their assets in case you were unable to work?

The problem wasn't so much the insurance policy but how it was mis-sold to you. In most cases it was the policy and the mis-selling that is the problem.

Claiming back PPI compensation in Scotland

Like many customers, you will need to prove that you were mis-sold PPI. This does not apply just to PPI, but any financial product that was mis-sold to you.

You must showhow or why you believe you were mis-sold PPI. There are many reasons why this product was mis-sold to the thousands of customers - here are just a few ideas:

  • Were unemployed, self-employed or retired at the time the product was 'sold' to you? If so, you were unlikely to have been covered by the policy and, in the case of those people self-employed, the conditions of the policy meant you would have to cease trading to be in with a chance of claiming, a fact many people were not made aware of.
  • In some cases, people felt that they had to buy PPI for their loan, credit card application etc. to be successful. Applying for a loan or mortgage (along with other products) is an emotional decision, hence you should not be pressured or 'persuaded' to buy any other product other than the one you want.
  • Customers were not advised to shop around and get the best deal for them. In fact, customers were led to believe that the only product that was available to was the bank's or lenders' own brand of PPI policy.

Find Your Pot of Gold

Payment Protection Scotland is the claim management company that is your rainbow to finding your pot of PPI compensation at the end of it.

But there is a problem - you might be thinking you don't have a claim because you don't have PPI. This makes it difficult to press home the fact to thousands of people that they could be victims of this selling scam by banks and lenders.

Why not contact our team and ask them to perform a trace to see if you have PPI polices - you could be very, very surprised…

Can You Claim PPI Compensation If You Are in Debt?

PPI has been in the headlines more or less continually since the start of the 2001 when the first batches of PPI compensation were made.

First was the announcement that it had been mis-sold to thousands of customers across the country, will billions of pounds in compensation possible owed. From here on in, there were numerous headlines of people receiving pay outs but also banks being fined for delaying payments, not dealing with claims in a timely manner and not calculating the right level of compensation.

The PPI stories in the media are like boomerangs - just when you think there are no more headlines, more appear and about another problem, like the amount of commission people were paid on the sales of PPI policies.

In amongst all this are people with real-life stories. Some people have claimed their money back, but there are a group of people worried that this will not be possible for them. And this is because they are in debt or arrears with their bank or lender.

We're here to tell you different…

We advise that you take time to check over all the details. If you spot PPI or one that sounds suspiciously like it, call our team.

Some people assume that because they are in arrears they are not entitled to make a claim but this is not the case.

PPI was Expensive

The cost of PPI could have been added in one lump sum on top of the amount you borrowed. Or every month, the payment you made was a combination of the loan repayment, PPI and then interest too.

A £5,000 may have been affordable but with a chunk of PPI added on top, the monthly interest the monthly payments you would make would significantly increase.

Some customers tell us that the monthly amount was outside of your budget and you may have struggled to make these repayments.

To make matters worse, you were probably paying for something you didn't need or want, but felt you had to buy.

You CAN Claim PPI Compensation

Any PPI compensation due to you must be paid to you and not added to your account. It is your money and you can do what you want with it. It may be that the bank or lender as part of the claim, wipe out the arrears but again, you need firm solid advice about this and you need to be confident that the bank is acting within consumer law and your rights.

You can claim your money back even if you are in debt or arrears to a bank or lender. Call us to find out more about our no win, no fee service and how we can help you.

 

Your PPI Claim

It has, more or less, been a constant source of embarrassment to the banking industry for years. the mis-selling of PPI has grabbed headlines frequently over the last decade or more and it will continue to do so, it seems, for some time to come.

But headlines don't give you the information you need to make a claim for YOUR money. But we do.

Do you have a compensation claim for mis-sold PPI?

The first thing you need to do is check if you have PPI. You do this by taking a look over all paperwork or any other documentation.

What are you looking for?

You are looking for an insurance policy that promises to make repayments on the account in the event you cannot do this due to a loss of income.

Is it always called PPI?

PPI is a generic name used to describe the insurance policy that protects the debt. Different banks and lenders used different 'brand' names for their polices, as did credit card companies, store cards and catalogues too. For example, if you had a store card with a high street retailer, you may find that the PPI was called 'card care' and so on.

If I have PPI, is compensation 'automatic'?

Unfortunately, no it isn't. According to consumer law, YOU need to prove that the policy was mis-sold to you and/or not fit for purpose.

However, banks and other financial institutions were told that they must write to their customers who they know had PPI, and invite them to make a claim. In the main, most major lenders and banks have done this or are doing so.

You may have received this letter and possibly a form to complete. This does mean that you were mis-sold PPI but rather inviting you to make a claim to found out if this is the case.

What are my chances of having a successful claim?

There are no guarantees that you will get compensation because in rare cases, PPI was an OK product. But there are many other products that are better value, offer better cover that suit your circumstances better.

What do you need to tell the bank or lender?

You will need to them why you were mis-sold the product. There are many reasons why this could have been including;

  • Being told or given the impression that the purchase of the policy was compulsory when in fact, the opposite is true
  • Not being told that the policy was being added to your account but receiving a letter to tell you that they were adding it
  • Even though you had cover, you were told that you must take out this policy
  • You were not told of the terms and conditions and the exclusions under these conditions
  • You were not told that any pre-existing medical conditions were not covered under the policy

There are many other mis-selling reasons too and we will be happy to help; why not give us a call?

 

Claiming PPI Compensation

A mix of detective work and ensuring you know your rights is exactly what you need to be able to confidently ask your bank or lender for your money back.

But what is really involved in claiming PPI compensation?

Detective work

This means finding all the paperwork and documentation that applies to any loan, credit card, store card, catalogue or car finance you have had from the mid-1990s onwards.

PPI was an insurance that was sold alongside loans and the like to customers. You may have been told its purpose was to make repayments in the event that you couldn't. this could be because you lost your job or you couldn't work for an extended period of time because you were too ill.

In essence, you were insuring the debt against you not being able to make repayments. It sounds good policy to have but there were some fundamental flaws, one being the way in which it was sold. Which brings us nicely on to our second point…

Mis-selling reasons

Once you have located the paperwork, you can now set about getting your money back. But in order to do so, according to consumer law, you need to tell the bank why the policy was not right for you and/or why you think the way in which the policy was sold was wrong.

There are many reasons why PPI could have been mis-sold to you. Here are some of the most common;

  • You were given the impression you had to buy it or it was part of a 'packaged deal'- both of these are wrong because when you take out a loan, you don't need to buy anything else from the bank. In the case of a mortgage, the bank can insist you have some kind of insurance such as critical illness, but you don't have to buy theirs and you are free to shop around.
  • You weren't told much if anything, about the policy- PPI is a debt-specific insurance and that means it covers a certain debt for a certain length of time. But, there were some limits to the cover and how the policy worked which most customers were not told about. If you had known about some of these terms and conditions, you may not have been willing to buy it and if you did, you may have questioned the cost.
  • Certain terms and conditions ruled you out of being covered, but the bank sold it to you anyway- if you are self-employed, it is a reasonable expectation that your bank would know this. And they do, in the main. But that didn't stop them selling their PPI policies to thousands of customers were owners of or operated their own businesses. Effectively, PPI did not cover anyone self-employed but if it did, the terms and conditions were such you were unlikely to have bought it.

And there other mis-selling reasons too and when it comes to the final step - putting your PPI letter of complaint together - you may need the help of our expert team. Why not give us a call?

 

Claiming PPI – What would you do?

Think you have a handle on the PPI saga? Do you know what to do in these situations?

I made a claim against my bank for PPI compensation on a loan saying that I didn't need it as I had other insurances that would cover the loan. I also said I felt that the representative didn't really listen to what I had to say and that they sold it to me anyway because it was part of the deal.

But, the bank has said that I agreed to PPI, I understood the terms and conditions as they were explained to me and that it was not part of the deal when I applied for the loan. They have said they won't pay me compensation.

This is a tough one to resolve as the meeting that took place between the customer and the bank representative was not recorded, effectively meaning it is one word against the other.

However, when taking the issue to the Financial Ombudsman, the customer can;

  • Complain about the PPI policy itself - for example, if the terms and conditions quietly clearly show that the customer would not have been covered by the policy, then they have a case that had they known this, they would not have bought it.
  • Current insurance policies - the customer mentions that they have or had other insurance policies in place at the time PPI was sold to them. By producing these policies, the customer can show that there was a duplication in insurance cover and thus, they were unlikely to buy another policy offering the same thing.

What else can we suggest?

We would suggest to the customer that they ask the bank how much commission was being paid to the representative in the event the sale of PPI was successful.

The recent Plevin case highlighted that commission rates were very high - some 75% of the total cost of arranging PPI was commission - and when this is the case, and the commission figure was not revealed to consumers, then this in itself can constitute a mis-selling claim.

The argument is simple - if customers had known that the majority of what they paid for a PPI policy was lining someone else's pocket, they probably would have questioned the fee and may have even decided not to buy the product.

Would we recommend this customer takes their case to the Financial Ombudsman?

Yes. In fact, we suggest to all customers who receive a negative response from their bank or lender that they take their case to the Ombudsman because, in spite of more complex cases, the Ombudsman is still holding up the majority of complaints in favour of the consumer.

 

When Time is Pressing, We Can Help Claim Your PPI Compensation for You

You could be missing out on thousands and thousands of pounds, all of it YOUR money but if time is pressing, sorting through paperwork, writing letters, chasing responses and so in a timely manner can seem like a herculean task.

Because life is busy. We hardly know at the end of each day how we fit it all in - from work and school, to housework and after school lessons, hobbies, socialising as well as all the necessities of life.

The idea of spending hours of our time with on the phone, emailing the bank and writing letters to get back the premiums we paid in payment protection insurance (PPI) is not a welcome thought. And there are the many hours spent sifting through paperwork, trying to find an elusive piece of paper that unlocks the whole puzzle.

Don't let the opportunity to claim thousands of pounds of your money back pass you by. Our service is exactly what you need and with a transparent fee structure - one payment and a no win, no fee service - we will do the leg work on your behalf.

Step 1: The Paperwork

We need to be confident that we are chasing a genuine claim for PPI compensation and the way we do this is for to supply us with as much information as you can.

Which of my accounts do I look at?

Any account in which you borrowed money or were supplied with credit - credit cards, personal loans (secured and unsecured types), mortgages (in some cases), store cards, car finance and catalogue accounts.

Once we have PPI on accounts confirmed, we can begin creating your case to claim back YOUR money!

Step 2: Proving PPI was mis-sold to YOU

Fundamentally, there is not a problem with principle behind PPI - it was expensive, however, for the cover it offered. The issue is the way that these policies were sold.

We will need to ask you a few questions about when you took out the account and how the PPI policy was sold to you.

It might be that you cannot remember or that you find you are excluded under its narrow terms and conditions. Ask yourself this: if you had known about these exclusions, what is the likelihood that you would have bought the policy?

Step 3: Creating your case

Each account on which you are claiming PPI will need a separate letter and, for one fee, we will create as any letters that are needed.

We do all this for you, giving you the freedom to get on with your busy life!

Call us here at Payment Protection Scotland to find out more NOW!

 

Claiming Back PPI Compensation – A Real-Life Example

Claiming compensation for mis-sold PPI need not be complicated. But there are times when the situation in which you were sold PPI can be more complex, adding to the confusion as well as the time it takes for the case to be resolved.

The Financial Ombudsman have noted in recent months that the cases they are dealing with are proving to be more complex. But that doesn't mean you are not entitled to PPI compensation.

With the PPI deadline of August 2019 looming, the time has come to claim your money back. But take a look at this real-life case. Is your case similar?

Self-employment and PPI

Malcolm (not his real name) has been self-employed all his working life and, like most sole traders has relied time to time on loans to finance larger contracts. As a pre-requisite to gaining this credit, he was told that he needed payment protection insurance policy. Malcolm felt he had to agree even though it added a significant amount to his monthly payments.

What Malcolm didn't know were the terms and conditions of the policy and how he would have to shut down his business in order to make any kind of claim on the insurance policy. Had he known this, he most certainly wouldn't have bought it. But Malcolm felt he had to buy it and that it was 'part and parcel of the loan package.

However, he had lost his paperwork and felt his PPI compensation claim was a non-starter.

Making a Claim

Banks are not required to keep copies of paperwork indefinitely but, under the terms of the Data Protection Act, Malcolm on payment of a small finding fee can ask for copies of all the paperworkrelating to his loans.

At this point, he also submitted a letter of complaintasking for PPI compensation.

He also contacted one of the credit reference agenciesas these organisations collate and keep information that can be accessed by the customer. He paid a small joining fee but was worth it and it can be easily cancelled in the future.

The bank maintained that Malcolm agreed to the policy and that he did know of the terms and conditions. They said he wasn't entitled to compensation although they later relented and offered Malcolm a sum of compensation.

But he worked with a reputable claim management company and they felt that Malcolm, once again, was being short changed by his bank. But the bank refused to move on their offer.

With the company's help, Malcolm submitted his claim to the Financial Ombudsman. Although he had to wait a while, it was worth it because they upheld his case, and the money he received in compensation was a lot more than what the bank offered.

Sometimes it pays to get the best advice from experts in the field of PPI compensation. Call Payment Protection Scotland today!