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Archive for tag: PPI

Do you need PPI?

With the payment protection insurance (PPI) selling scandal still making headlines, it can be difficult to see if there is any advantage to having this type of policy.

PPI Button

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?

Before signing up for PPI, consider it carefully whether you actually need more insurance cover.  

Ask yourself these key questions:

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

Some people have savings or other policies that would kick in should this happen. For example, do you have;

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

If you do have the above, then you may not need PPI.

How much will the policy cost?

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

Similarly, the more a policy offers, the more expensive it will be.

How long does the policy pay out for?

Many PPI policies only pay out for a set length of time such as for the first 12 months of any claim.

Most PPI policies will also have 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 because 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.

It pays to shop around when it comes to payment protection insurance but if you think you have been mis-sold PPI on loans and product in the past, you can contact PPI Scotland for help and advice on how to make a claim for compensation.

Do I need to buy it now? Why can I not buy a policy independently?

The best way to buy an insurance policy is to take your time to find one that offers the cover you need, for the price you can afford to pay. If the sales rep. insists you buy it now, walk away because this is not how financial products should be sold.

Exercise Your Consumer Rights – Claim PPI Compensation BEFORE August 2019

Payment protection insurance - commonly known as PPI - is a financial product that will be forever known as the biggest mis-selling scandal ever to have rocked the British financial industry. But it is coming to an end. If you want to claim your money back, you need to do so before 29th August 2019 or face missing out.

Consumer _Rights

Within the UK, 24 financial firms are responsible for 96% of the claims with a variety of banks finding they have had to add considerable amounts of money to their PPI compensation pots - the Royal Bank of Scotland, for example, has added a reported £450million, while Barclays has added even more to its PPI compensation fund.

And why are banks adding funds to their compensation pots? Because customers are exercising their rights and asking for their money back - and you could be next in line to claim your money back with our help.

What is 'mis-selling'?

It is a phrase linked with PPI but what does it actually mean? PPI was mis-sold for a variety of reasons but essentially, it means that it is not suitable for many people.

Customers who, for example, were;

  • self-employed or
  • retired or
  • suffering from pre-existing medical conditions

and were sold PPIwould not have been able to make a claimunder the terms and conditions of the PPI policy as they were not covered.

And some of these terms and conditions also present many mis-selling issues - significant exclusions, such as pre-existing medical conditions were not fully explained to customers. Thus, when some customers thought they were covered, they were not.

Make sure you exercise your consumer rights

PPI was mis-sold on a large number of products to thousands of customers. If you have had a loan, credit card, mortgage, car finance, catalogue account with any company - or any combination of any of these products -  contact PPI Scotland.

How to claim your money back

You need to;

  1. Look through all your accounts on which you borrowed money- this means checking catalogue accounts, credit cards, loans and more. And check carefully as PPI was not always called PPI and neither will premiums always be obvious.
  2. If you find PPI, make a claim-even if you are unsure how or why it was mis-sold to you. The likelihood is it was mis-sold and you will be due to all your premiums back, and interest too.

Who we are

As a claims management company specialising in PPI compensation claims, we have helped thousands of customers to successfully exercise their consumer rights - and claim their money back. We charge a fee for our service but offer our expertise on a no win, no fee basis. Interested? Call us!

PPI Nuisance calls – Will the PPI Deadline Cause Them to Surge?

You may have noticed texts telling you to claim the thousands owed to you in PPI compensation. Or maybe you have received phone calls suggesting you make your claim for PPI compensation now.

Ppi

Some may have looked part way convincing. For example, it may say something like "we have calculated you are owed £3,621.18p in PPI compensation" and so on.

These texts and phone calls relating to PPI have been a nuisance since the PPI scandal broke. They are from claim management companies who say they have your best interests at heart.

Professional and reputable claim management companies have a more responsible attitude to promoting their claim management services.

But back in March 2017, the media on hearing the announcement of a PPI deadline for August 2019, told us that these scam calls and irritating texts would explode and we would all face the nuisance that are PPI calls.

But has this happened?

The PPI Deadline Promotional Campaign

Alongside a deadline of 29th August 2019, the Financial Conduct Authority (FCA) has determined that in order for everyone to have the opportunity to claim their money back, there needs to be a massive promotional campaign.

This campaign is reputed to be costing £42 million, a bill being paid for by the banks and lenders responsible for the PPI mis-selling debacle.

The number of PPI compensation claims have been steadily increasing and are expected to remain high as the August 2019 PPI deadline approaches.

How Will the PPI Deadline Work?

You can lodge your PPI complaint about mis-selling anytime between 29th August 2019. After this date, no new cases relating to PPI complaints that pre-date 2017 will be looked into.

In other words, they are drawing a line under historic mis-selling of PPI and any new cases that could possibly have happened in these last few months.

How Does the PPI August 2019 Deadline Effect Payment Protection Scotland Services?

As yet, it doesn't in relation to PPI compensation claims. We will continue to accept and pursue genuine PPI compensation claims we are confident the policy or policies were mis-sold to you.

We will continue to accept and lodge new PPI complaints up until the deadline of August 2019. After that date, we will no longer be able to lodge new complaints with banks and lenders.

Don't Miss Out!

Lodge your complaint about PPI compensation TODAY! Don't wait for the deadline.

The Highs and Lows of the PPI Scandal

The PPI mis-selling scandal is set to come to an end very soon with the August 2019 PPI deadline looming ever closer. Over the past eight years of compensation claims, there have been many highs and lows, not including those that happened from the mid-1990s onwards when the PPI scandal was spotted.

Elevator

The Highs - PPI generates huge profits for banks and healthy commission payments for staff

Let us take you back to a world of banking that looks very different from the banking world we have today.

Loans, credit cards and mortgages were freely available. These products were (and still are) the 'bread and butter' of banks and lenders across the UK. Payment Protection Insurance (PPI) was an 'add-on' product that sales advisors sold to thousands of customers when they took out a loan or other credit facility.

Sales staff enjoyeduncapped commissionwith some bank sales representative earning a staggering £80 or more per case.

And, it was not a short-term thing. This PPI selling had been going on since the mid-1990s, continuing unhindered for many years. The PPI market was estimated to be worth billions to the banks who were making huge profits.

By 2009, there were well over 20 million PPI policies in the UK.

The Lows

The first low was when someone complained. This complaint started an investigation and from this and the many reviews and super-complaints that followed, the banks were told they must repay every penny of these PPI policies.

But the problem isn't the product but the way in which it was sold.Customers were sold the product when they didn't want or need it. And, for many customers, they wouldn't have been able to make a claim on the PPI policy as they weren't covered by it. In other words, the PPI policy didn't fit their needs.

And customers started to claim back PPI compensation in their thousands.

A further low

The banks decided to fight back as obviously, they didn't want this scandal to hit their profits. They asked for a final Judicial Review. The review went against them but by this point in the journey, there was a huge backlog in the number of PPI cases waiting to be assessed by the banks.

Another low

In late 2012, banks had paid far more in PPI compensation than they thought they would have to. Major UK banks set aside more money - in the case of the Lloyds Banking Group they recently added a further £14 million to their compensation pot.

Are you sure that you don't have an eligible PPI claim? If you've had a loan, mortgage or credit card in this last 10 years or so, then you need to check statements and documents.

If you have PPI, then contact Payment Protection Scotland and see what we can do for you.

 

PPI and Commissions Based Sales

As many customers are now finding out, they were mis-sold Payment Protection Insurance on their loan, mortgage, store card, catalogue account, car finance and credit cards. Whilst customers make compensation claims to reclaim premiums paid AND interest, there could soon be more compensation coming your way.

Abc

Selling commission-based products has been an issue for many people all along, and the ruling in the Plevin case has now been interpreted. What this means is that if the commission paid on the sale of PPI was higher than 50% and you were not told, you should be compensated.

How did mis-selling of PPI happening in the first place?

Profits and commission.

As a sales advisor for a bank, an employee would often receive an incentive payment if they sold various products.

This in itself is not a bad idea… if you need the product.

For some people with no savings and possibly employment that may be under threat, taking out a PPI policy or another insurance policy of this kind would be a sensible move.

Did you know...?
It was found that some financial institutions operated a 'first past the post' system in which the first 21 members of sale staff to reach a target would receive a £10,000 bonus

Where it went wrong with the selling of PPI was that advisors received large amounts of commission for selling it, meaning that the banks made staggering profits.

In fact, it has been estimated that at the height of the mis-selling, some banks were making up to 80% of their profits from PPI sales (Source: BBC money)

What measures are being put in place to stop this happening again?

The Financial Conduct Authority is clamping down on commission based sales within the financial industry.

According to one report, bank staff still feels 'under pressure' to sell products. Whilst commission- based selling isn't a problem - after all, it acts as an incentive - it can cloud the judgement of an advisor to sell products to people that don't really need it.

Did you know...?
Sales staff at one financial firm could earn as much as £10,00 on top of their earning with commission-based selling of PPI.

If you have a loan, credit card or mortgage that you have taken out in the last 6 years or so, then it would be worth checking your documentation to see if you have PPI.

If you think you were unfairly sold PPI, you should claim PPI compensation.

Why not call out team for a no obligation chat?

PPI Mis-Selling – Letters from Lenders

Two years after PPI compensation payments started, lenders and banks were told to send letters to their customers to highlight the fact that they may be entitled to make a compensation claim for mis-sold Payment Protection Insurance (PPI) on loans, credit card or mortgages. Today, eight years on since the first clutch of PPI compensation claims, banks and lenders are still being urged to contact customers to make sure that as many of their customers receive the money back that they are entitled too. But how do you know this is a genuine letter and not a 'marketing letter'?

Writing

Letter guidelines

The then Financial Services Authority - now the Financial Conduct Authority - issued a set of guidelines for the PPI letters to ensure that potential claimants did not dismiss it as yet another marketing letter, a common vehicle for some less than scrupulous claim management companies used.

Banks were heavily criticised by the leading consumer group 'Which?' for making the PPI mess worse by ineffectively communicating with customers.

Advertising activities, such as unsolicited text messages or SPAM messages, have made many people wary of anything that mentions PPI or suggests they could be entitled to claim huge amounts of money.

Therefore, these letters had to:

  • Be free from marketing material as well as financial jargon
  • State clearly the letter contains important information and should be read carefully
  • Be clear that the customer may have been mis-sold PPI type policy
  • Inform the customer that as a result, they may have suffered 'financial loss' and may be entitled to compensation (also termed a 'redress')
  • Clearly emphasise that there is atime limitin making a compensation claim from the date the customer receives the letter and that they need to carefully consider making a claim…

… And this means that if you received a letter back, the time limit is ticking down now! Have you made your claim for PPI compensation?

What can you do NOW?

  • Don't wait for the time limit nor the PPI deadline of August 2019 - Check your account, statements, documentation etc. It may take time, especially if you have several credit accounts but it is worth investing the time NOW. If you see some form of PPI (it may have a different name), consider whether you agreed to this policy or, read the terms and conditions of the policy: are you covered?
  • You can contact your bank and/or lenders yourself or you can use a claims management company like Payment Protection Scotland.
  • We offer an effective service to help people make a PPI compensation claims. We charge a fee for this service, payable on successful completion of your compensation claim.

As an established PPI compensation claim specialist company, we have an enviable reputation for making successful claims on behalf of our customers.

If you decide to continue with us, then all you need to do is sign a few forms, sit back let us to do the chasing on your behalf! Why not contact us, and see what Payment Protection Scotland could do for you?

PPI, Spam Texts, Your Privacy and the PPI Deadline

The payment protection insurance (PPI) mis-selling fiasco has led to several annoying things to happen - unsolicited phone calls and annoying spam texts. You know the type, because you have probably received one or two, maybe even more over the years that the PPI compensation saga has been running. You may have received a text that claimed "Our records show you are entitled to £4,658 in PPI compensation! Reply INFO or stop". Or one that says "your name is on a list to receive PPI". It's easy to be caught out but these texts are nothing more than spam, a sad reflection of the PPI mis-selling scandal.

Spam

The Mis-selling of PPI

PPI was widely mis-sold to customers and has become the biggest mis-sold product ever in UK financial industry history. The scandal of mis-selling - usually a commission based product for customer advisers - has shaken the financial sector to its core, with no bank or lender being untouched by the saga.

As a result of the PPI mis-selling scandal, another industry was created - the claim management company (CMC). For many critics, the claim management company is not a welcome development. To others, they are welcome and are happy to pay a fee for professional help in claiming PPI compensation.

The Key Term - 'Professional'

There are many CMCs who do NOT send unsolicited or spam text messages and follow advertising guidelines when connecting with customers and promoting their services to them. However, when you do receive a text about PPI,  bear this important fact in mind:

  • These firms do NOT have access to your personal or financial details so don't be swayed by these text messages that promise you a certain compensation figure. The sender has no idea of your personal circumstances.

Payment Protection Scotland - our pledge

As a professional claim management company, we do not send unsolicited text messages to anyone with false information. All our customers contact us through our website and neither do we make vexatious claims- in other words, if we do not think you have a claim, we will not take your claim any further.

Claim PPI Compensation with Payment Protection Scotland

The idea behind PPI is simple and will remain valid right up to the PPI deadline August 2019 - in the event of you being unable to work due to illness, accident, redundancy or death, this insurance policy should cover your repayments on your loan, mortgage, catalogue accounts or credit card.

Banks and lenders offered this product on specific products but it was mis-sold by banks and lenders to millions of customers. The PPI policy rarely paid out when people needed help.

PPI was not explained fully and was of little, if any benefit, to most customers, such as those retired, self-employed or with pre-existing medical conditions.

Do not be swayed by spam text messages! If you think you have a PPI compensation claim then contact Payment Protection Scotland. We can talk you through the whole process and don't forget, you are under no obligation to continue.

Why are PPI Compensation Awards Different from One Person to Another?

We have all read the headlines and marvelled at some of the large payment protection insurance (PPI) compensation settlements customers have received. But, just why are some of these compensation settlements so high when compared to the average pay out of £2,750?

Light -bulbs

PPI & Credit Cards

Many of the larger PPI compensation pay outs are around PPI policies on credit cards. There are several factors why PPI compensation can reach such large proportions:

TIME - many of the customers who have received five-figure sums in PPI compensation had their credit card over along period of time and therefore, could have been paying out hundreds of pounds each year for the PPI policy.

NUMBER of credit cards - one customer who received a large pay out of over £65,000 hadmore than one credit card and had also had these for a long period of time. These two factors combined meant that the compensation due soon totalled a large amount.

INTEREST - what does significantly boost PPI compensation is the application of interest and how the premium each month was calculated. PPI premiums varied on credit cards as the amount a customer paid in PPI premiums each month depended on the outstanding balance. Hence, if you were up to the card limit and only paid the minimum each month, your monthly premium would be higher than if you paid it off. In this way, one businesswoman with two cards over many years which were often at their limit received over £82,000 in compensation.

Why do credit card providers have such a large slice of the PPI compensation market?

Applications for credit cards were easy forms to fill in back in the economic heyday of the 1980s and 1990s, more so with the advent of easy credit with online applications. Many applicants will not have noticed a small box at the end of the very small print that informed the customer PPI was available on their account.

Our Terms of Services - Clear, Transparent and Easy to Understand

Payment Protection Scotland's 'small print' is not small or hidden. We offer a fully transparent service and our terms and conditions are available on our website. Our friendly customer service advisers will be more than happy to talk through the no win, no fee terms of service we offer.

We are a claims management company that specialises in making PPI claims on behalf of customers. We will assess your case and suggest the best way forward.

Contact us today for further information.

Are You Sure You Don’t Have A PPI Compensation Claim?

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

Unsure

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 had a loan, credit card, car finance, catalogue account, store card or opened a newmortgage at any point from the mid-1990s onwards

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?

Claiming PPI compensation is NOT a complicated process (in most cases)

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, is 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 so didn't need an additional insurance 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.

I have no paperwork or policy numbers, can I still claim PPI compensation before the 2019 deadline?

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 Payment Protection 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.

PPI – An Exhausted Product or One That Will Fight to Live Another Day?

The scandal surrounding the mis-selling of payment protection insurance (PPI) cannot be avoided, more so now that the August 2019 deadline has been announced.

Exhausted

It seems that on a regular basis, articles appear in newspapers and on the web about the mis-selling of this insurance product. Many people have already claimed compensation but many more are yet to do so - are you one of them?

PPI is still a genuine product but, like all insurance products you need to be sure that the policy provides the cover you need.

What is PPI?

PPI is designed to cover the payments on your debts - such as loans, mortgages, credit cards etc. - should you be unable to work due to illness, accident or redundancy. The policy will make repayments on the product it covers but for a limited time and dependent on which company is providing your cover. In some cases, PPI payment cover lasted for 12 months, whilst other policies stretched to 24 months.

What PPI does not cover

It is suggested as with all insurance products, that you examine in detail what is and what is not covered.

In most cases, a run-of-the-mill PPI policy will not cover:

  • The first 90 days or 12 weeks after you have stopped work - you will need to make any payments on the loan etc. up to this point. Can you afford to do that with less or no income?
  • Various illnesses are NOT covered - check these exclusions carefully, as they may include illnesses you could be 'prone' to.
  • Pre-existing conditions or illnesses you already know about and this means the most likely reason why you cannot work is not covered.
  • PPI will not provide cover for those who are retired but the bank still sold it to you…

Do you NEED PPI?

PPI can be useful in certain circumstances, e.g. you have a credit card, loan or mortgage and you want or need an insurance policy that will cover your repayments on one of these products.

However, considering the numerous exclusions and specific cover offered by PPI, you should check carefully if the PPI policy is providing an acceptable level of cover.

Some people have benefits with their employer that makes PPI surplus to requirements. These benefits may include;

  • A comprehensive employee benefits packages such as sick pay being your full salary for 6 months.
  • You may have savings which would, in the short term, be enough to make any payments
  • Your partner's income would be sufficient to make payments on your mortgage etc.

Were you mis-sold PPI?

PPI can be, for some, a useful product.

However, the wholesale mis-selling of the insurance has given it a bad name as an insurance policy, with many customers questioning its worth.

Payment Protection Scotland is a specialist claims management company, offering a PPI claims service to customers from across Scotland.

With no upfront fees, you can be confident in the service that we offer. Contact us TODAY!