Payment Protection Scotland - PPI Blog

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

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.

The announcement by the Financial Conduct Authority that the deadline for PPI claims is set for 29^th August 2019 means that the writing is on the wall for PPI compensation claims.

By the last Thursday in August 2019, anyone wishing to make a claim for PPI compensation will have to lodge their complaint with their banks or lender. After this date, there will be no new PPI cases accepted unless you were mis-sold PPI after August 2017.

Do you want to Claim PPI Compensation?

Thus far, over £30 billion has been paid to customers who had PPI mis-sold to them by banks and lenders. Even though you may be thinking the deadline is months away, there are many reasons not to wait around for it to arrive.

The PPI August 2019 is FIRM

Unless something explosive happens in the next few months, the deadline for PPI compensation claims of August 2019 will hold firm.

However, there have been so many changes and issues in the last few years relating to PPI, never rule out any challenges and issues!

There could be a bottleneck

The FCA are spending £42 million - a bill paid by the banks - on an all-encompassing promotional campaign that they say will reach everyone in society.

Even though they say that there shouldn't be a bottleneck, some critics argue that everyone with a claim does so in the next two years, the compensation process could take years to unravel.

You could be entitled to more money than you think

There is a new category of mis-selling called 'Plevin', named after the customer who brought the case.

This new category within the PPI compensation process stipulates that if more than 50% of the PPI's cost was paid in commission to a lender or broker, you are entitled to this money back.

This ruling comes into effect from August 29^th this year and thus, some people who have already claimed may get more back. For this to count, however, your account will need to have been active (i.e. made a payment on it) from some point in 2008.

It is a staggering fact but Martin Lewis of MoneySavingSupermarket.com says that as much as 67% of what customers paid for PPI was pocketed by the banks.

If you had known the commission was so high, wouldn't you have queried the cost?

Even if you are positive you didn't buy PPI… CHECK AGAIN!

This is your money and it cannot be emphasised enough that it was a policy that was mis-sold to millions of people. If you had a credit card, store card, personal loan, mortgage or any kind of account from a bank, lender or through a high-street retailer, you could be entitled to claim thousands of pounds back.

The average PPI claim is still standing at £3,000 per person. You could claim more - contact the team at Payment Protection Scotland.

Thousands of people have already claimed PPI compensation with the help of our expert team here at Payment Protection Scotland. We are poised ready to help customers in the future too and with the PPI deadline August 2019 fast approaching, we expect to help many more people in the coming months.

Successful PPI compensation claims are reliant on several factors. Here we talk through what they are…

Customers knew they had a PPI policy or policies

The foundation on which PPI compensation claims are made is the fact that there is a PPI policy or, as in some cases, several policies over several loans, credit cards and so on.

Initially, banks and lenders were unwilling to help customers identify whether they had PPI or not. This has changed and so if you think you have a policy and want to confirm it, you can simply ask your bank or lender.

By being confident that you have PPI policies and even telling the bank or lender the policy numbers, you have overcome a big obstacle standing between you and your money.

Customers knew why they had been mis-sold PPI

It is important that you understand why you were mis-sold PPI. There are many reasons why this is the case:

• you didn't know that you had been 'sold' PPI
• it was added to your account(s) at a later date
• you were given the impression that you had to buy PPI
• you were told that shopping around for another policy was not an option
• the opt-in box on your loan or credit card application was already ticked
• you were advised to buy PPI but are unclear as to why it was the right insurance policy to buy
• you were self-employed when it was sold to you
• you were unemployed
• you were over the age of 65 when the policy was sold to you

Not sure which of the above applies to you? Call our team today to find out more and to find out what other mis-selling reasons there are.

Customers chased the claim and insisted on their money back

A confident customer is hard to refuse and thus, banks and lenders have had to justify cases where they have decided not to award a claim for PPI compensation.

The Financial Ombudsman is the body that looks at complaints from customers about banks and their services. Thus, they are swamped by claims from customers who want them to make the final ruling on their PPI compensation claims.

The good news is that the Ombudsman is finding in favour of the customer in seven out of 10 cases.

Payment Protection Scotland has worked with thousands of customers to claim their money back - and we can help you too. Call us!

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?

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?

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

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.

Finding impartial advice and guidance on how to make a PPI claim can be difficult.

The PPI scandal has mushroomed into a massive problem for British banks, the magnitude of which has caught many people by surprise. Unsolicited text messages, media adverts and cold calling have put many people off making a PPI claim or seeking advice on how to go about it.

There are also PPI horror stories of people claiming back very little in PPI compensation but are left with a huge bill from a claim management company.

Answering Your Questions

Here are some questions we are frequently asked;

Are claims management companies just ripping people off?

Here at Payment Protection Scotland, we pride ourselves on our reputation for being a reputable and honest claims company.

We are honest with you right from the start - if we don't think you have a PPI claim, we will tell you.

If you decide to continue, you will be made fully aware of our terms and conditions. You can trust us to work hard for you every step of the way.

But aren't claims management companies responsible for the 'helicopter drop' effect?

The 'helicopter drop' as it has been described, is when a claims management company gathers together PPI compensation claims and submit them all at once to various banks.

They have NOT

• analysed these claims
• assessed these PPI claims submitting many that are ineligible.

This leads to backlogs at the banks, as well as increasing their administration costs.

Here at PPI Scotland, we have neverengaged in this practice. Our intention is to help all our customers claim back what is rightfully theirs.

How do you stop this 'clogging the system'?

When you contact us, you will need to give us details of loans, mortgages, credit cards, store cards, car finance etc. and, if possible, the PPI policy numbers on these accounts.

But finding PPI policy numbers, especially on accounts that are closed, can be difficult. You can get policy numbers from documentation that you still have or if you can't find it, then you can contact your bank. Under the Data Protection Act 1986, you are entitled to this information.

If you still can't access these, then contact us as we can help.

How much are your fees?

Our latest fee structure can be found on our website. But if you don't win your PPI compensation claim through us, then you won't pay us a penny. This is our 'no win no fee' guarantee.

And, you only pay when you receive your compensation. No money on account and no upfront fees.

But hurry, because the PPI deadline is months away!

When something has been around as long as the mis-selling of payment protection insurance (PPI) scandal, it is a distinct possibility that people become complacent and indifferent.

So, as we near the end of 2018 and look ahead to the New Year, wouldn't it be a lovely start to the next year knowing that there is a potential windfall of cash making its way to you? But, you need to make it happen before 29^th August 2019 because that is the PPI deadline day!

This is how you make your claim…

#1 Get your facts in order

This means taking a look at all the original documentation, if you have it, for all accounts in which you borrowed money. From credit cards to personal or unsecured loans, to mortgages in some cases and car finance too. Take a look at catalogues accounts and store cards too - you will be surprised at who added PPI to their customers' s accounts.

If you don't have paper copies, look online at your accounts if that is a possibility. If not, take a look at the next mini-step.

#1a Short on paperwork? We have the answer…

If you cannot find the paperwork, contact your bank or lender and ask them for a copy. They have been told NOT to charge 'search fee's and, more importantly, don't take no for an answer.

If they say that the paperwork is long gone, suggest that they look at their computer network and servers as banks and lenders keep information for a long time.

#2 Detected PPI? Make a claim

In order to claim your money back, you need to tell the bank or lender why you believe you were mis-sold the product in the first place.

It may be for example, that it was added without your consent, it was not suitable, the policy was not fully discussed with you because, if it had been, you would not have bought it and so on.

#3 Get help if you need it

If you are unsure about any aspect of making a claim for mis-sold PPI, then you need to seek help from the right people.

PPI Scotland is a reputable and trusted claim management company that has worked with thousands of customers to make successful claims for compensation. We can, for a fee, help you claim your money back.

#4 Find out more - call Payment Protection Scotland

There is no obligation when you call us and we take on all cases on a no win, no fee basis so you only pay us if we are successful!

You may remember that some time ago, a consumer won a ruling against the company that sold her PPI for failing to disclose the amount of commission they were being paid for selling her a payment protection insurance (PPI) policy.

Many financial experts have been left wondering how the outcome of this case will affect PPI claims made in the past and those to come. It could mean that customers are entitled to yet more PPI compensation.

Financial Conduct Authority

The Financial Conduct Authority (FCA) is the banking industry regulator and they have decided how the Plevin case ruling should apply to PPI cases now and those settled in the past.

Of the amount of commission paid on the sale of a PPI policy was more than 50% of its cost and the consumer was not made aware, they are entitled to this money back.

The FCA has been consulting on a PPI complaints package. As well as looking to end PPI claims for compensation with the August 2019 deadline in place, they also wanted to be clear on the impact of the Plevin ruling.

The FCA consulted on;

• The approach to fairness and redress in PPI claims
• To reflect any previous rebates when customers cancelled PPI to be considered when reflecting the final PPI payment
• To address and clarify how firms and banks assess fairness and redress where commission or profit-share rates vary

Putting the PPI deadline in place

Previous to the summer of 2017, the FCA would not entertain the idea of a PPI deadline simply because the numbers of customers yet to make a claim was significant. Some critics argue that the case has not changed very much with only 40% of people who have a claim have yet to do so. That leaves 60% of people with a PPI compensation claim yet to claim their money back.

Andrew Bailey the head of the FCA says that "Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity".

With the impact of the Plevin case hot on the heels of the announcement of a firm PPI deadline, making sure all consumers get their money back is a priority.

What this means for you

As a consumer who was possibly mis-sold PPI, you need to be clear about whether you intend to make a claim for compensation or not.

Once the deadline has passed, you will have no way of claiming your money back for a PPI policy that was potentially mis-sold to you prior to July 2017. This could mean giving away your money for a second time and could be anything from a few hundred pounds to thousands of pounds.

Can you afford to let this money slip through your fingers? Why not contact a reputable and trusted claim management company specialising in PPI compensation claims? Contact Payment Protection Scotland today.

There are many statistics, facts and figures around PPI but one statistic released suggests only 40% of people who had a claim for payment protection insurance (PPI) had done so. With the PPI deadline of August 2019 closing fast, there were discussions as to why people were not claiming their money.

There were three main reasons suggested. Do any apply to you?

Apathy

The first reason is apathy, a boredom with the whole issue of PPI, what can be claimed, by when and by whom.

In other words, PPI is now so familiar that people assumed it was a good news story - people receiving sizeable financial windfalls - that affect everyone else but them.

Unaware

There is also a theory that there is a large group of people who are simply unaware that the PPI mis-selling debacle affects them.

This is because PPI was added to some products without the consent of the customer. If you applied for a credit card online, the opt-in box for PPI was already ticked. In other words, you were unlikely to check the small print of the policy and realise it was not the best fit for you.

Agreement

But there is a third theory as to why some people are possibly not claiming PPI compensation - they think that because they agreed to the PPI policy at the time of sale, that they do not have a claim for compensation.

The truth is, even if you did agree to buy PPI, it is still possible it was mis-sold to you.

And here's why;

• Impressions

Were you given the impression that you had to buy PPI? Or maybe the impression given was that the PPI policy and the loan went hand-in-hand? In other words, to get the loan, you needed to buy PPI too.

There are many people who agreed to buy PPI because they were given the impression they had to, they should do or they needed to.

When you buy a loan or credit card etc. you don't have to buy any kind of insurance policyfrom the bank.You are free to shop around, compare policies and buy the one that suits you. Buying insurance is not - and never has been - a pre-requisite for applying for a loan or credit card etc.

• The small print and the exclusions

Were you told what a great policy PPI was? Were you told that should you be unable to keep up with repayments because your income dropped that PPI would step in and make the repayments for you?

But, were you told that the policy only paid out in 15% of cases? Did the bank representative tell you that to make a claim, the process was complicated, complex and drawn out over a long period of time?

The truth is this - even if you agreed to PPI, you were unlikely to have been given all the facts on which you could make an informed decision for yourself.

You could have a claim for PPI compensation so call Payment Protection Scotland NOW!

We are asked many questions about making claims for mis-sold PPI and how easy it is to claim money back. But by far the most frequently asked question is how much money can be claimed? In this article, we answer all your questions.

How much money could I claim for mis-sold payment protection insurance (PPI)?

It's a question that never surprises us but until we have some more details from you, we can't answer with certainty.

The web and media are full of stories relating to big PPI pay-outs and that leads people to think that they are entitled to claim thousands of pounds in compensation. This may be the case or it may be that you get a few hundred pounds back.

What factors affect the size of a PPI pay out?

There are several factors that affect the size of your PPI compensation claim:

• Number of policies -some people have more than one PPI policy, so check your accounts carefully.
• Length of policy term -PPI policies were sold from 1980s onward and so if you have a PPI policy from long ago, you could have a sizeable claim on your hand
• Premium calculation -on credit cards, the premium changed from month to month as it was charged as a % of the amount outstanding on the account each month.
• Fees -what other costs and fees were incurred on the account?
• Commission -commission payments could be more than 50%, something you may not have known. Is this was the case, you could be entitled to claim this back.

What is the biggest claim to date?

A businesswoman received £65,000 in PPI compensation some years ago. She had two credit card accounts, both of which had PPI on and she had these accounts for a number of years. They were also at their limit a lot of the time thus, the PPI premiums she paid were high. Hence, her fabulous and rather unexpected windfall.

How much does it cost to make a claim for PPI compensation?

When you do it yourself, it costs you nothing. We charge a small fee for helping you make claims, payable once you have received your compensation. If we don't win your case, you pay us nothing. This is called no win, no fee. It means there is no financial risk to you.

Why should I use a claim management company?

There is no reason why you should use a claim management company but many people do so through their own choice. It could be a confidence issue, or they may be so busy with their daily lives that the thought of chasing the bank for money fills them with dread.

Why choose Payment Protection Scotland?

As a claim management company, we specialise in PPI compensation claims and have done so for a number of years. We have a high success rate, something we prize and continue to do so with a robust assessment of your potential claim.

Why not contact Payment Protection Scotland to find out more? There is no obligation!