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Archive for tag: PPI Saga

The PPI Saga - Has Anything Really Changed?

When the payment protection insurance (PPI) scandal broke, not many people realised how long the saga would last. With the 2019 deadline less than 12 months away, we take a look at what has changed in the wake of the biggest scandal to have hit the British banking industry.


What is PPI?

PPI is an insurance policy that should make repayments on loans and so on, should the premium holder be unable to do so for a variety of reasons. On paper, it sounded a great idea and a side move to protect your finances.

In reality, however, the way the policy was sold to customers meant that people either knowingly - or not as the case may be - bought into policy that was effectively useless to them.

As a result, there are many changes that have been made:

Single policy PPI is banned

Single policy PPI was when the customer paid for the policy upfront and in one lump sum. They were not overly common but there were a significant proportion of customers who had a single policy PPI.

What this meant in practice was that there was a significant lump sum added to the cost of the loan, on top of which the customer would also pay interest. What started as an affordable loan, quickly became a financial millstone around the neck for many people.

When customers did complain or cancel their policy, they were told they were not entitled to a refund of any monies etc. This can longer happen.

7-day breathing space

Many people were sold the PPI at the time they took out a loan or other credit product. It has been recognised that for many people, applying for a loan, credit card and so on is an emotional decision. They invest a lot of emotional energy into needing the loan to be able to purchase something that is of importance to them.

This can make people more susceptible to suggestion and thus when the representative suggested what a great idea it would be to protect your loan etc. people bought into the policy.

Some customers were also made to feel that their application was more likely to be successful and so wholeheartedly bought this additional policy.

Consumer rights

Until the PPI scandal broke, many people may have been under the impression that there was a whole different set of rules when it came to consumer rights and financial products. This is not the case; for example, you do not need to buy any other product from the bank at the time other than your loan or credit card etc.

PPI showed the banking industry that it needed to change in order to gain back the trust and loyalty of its customers. But, it has left many people wondering if banking will ever be the same again.

The PPI Saga – Like a Plot from a Novel!

Everyone loves a good page-turner, a book that when you have finishes reading it, leaves you sad that you will no longer have this wonderful world to sink into.

Many people feel like this about the PPI saga, although not for the same reasons. Banks and lenders can't wait to see the back of the whole embarrassing episode, and the consumer is also apathetic about PPI, the marketing texts, phone calls and emails they have been subject too.

As much as we may deride these PPI adverts on TV, radio and online, they carry an important message:

These adverts are STILL appearing because of all the consumers with a claim for PPI compensation, only 40% have made a claim. So why are the remaining 60% no claiming their cash back?

Consumers not understanding HOW or WHY the PPI mis-selling saga affects them

Payment protection insurance (PPI) was sold to consumers as the product they needed or must-have in order to protect repayments on the loan or credit card.

On the face of it, this sounds like a great idea. However, the problems start when you consider that the insurance product was not suitable for everyone - but was sold nevertheless.

For example, if you had a pre-existing medical condition, this was unlikely to have been covered by the PPI policy butyou were probably not told that.

You were also probably not told that there wereother significant exclusions.Being self-employed was one of them - if the policy did cover you, you were unlikely to have agreed to the policy if you knew the terms and conditions of making a claim.

There were also things likethe level of commission on the sale of a PPI policy not being disclosed, and the fact that the PPI policywas added to your account automatically or without your knowledge.

The point is simple - no one, not even a bank, can foist a product or insurance policy on you without your express consent. They may insist you have an insurance policy to cover repayments in the event you cannot continue to make them, but they cannot force you to buy their own policy over and above anyone else's.

Consumers unsure how to claim

Although we are told time and time again that claiming PPI compensation is simple and relatively straightforward - at this point in time, we have not seen overly complex cases at all - many consumers are still unsure or not confident to deal with what they see as, a mountain of paperwork.

As a claim management company specialising in PPI compensation claims, we can help. We do charge a fee for our professional service which you can find out more about when you call us.

Start your PPI compensation claim with Payment Protection Scotland today.

The PPI Saga – Not Just Hitting the Banks Hard

Payment protection insurance (PPI) is a saga that has been long running. Just when we thought it was drawing to a close or about to sink without trace, something would happen to place it firmly back at the top of the agenda.

With banks announcing yet more money into their compensation funds, the discussion of a PPI deadline of June 2019 has raised yet more interest in PPI.

Whilst banks and lenders are being hit hard, there is also another organisation that is bearing the brunt of the PPI mis-selling scandal - the Financial Ombudsman Service (FOS).

Who are FOS?

FOS in their own words are "the UK's official expert in sorting out problems with banks, insurance, PPI, loans, mortgages, pensions and other money and financial complaints".

This means that if you think a bank has treated you unfairly or mis-sold you a financial product, then FOS can help you out. You will first need to have tried to sort it out with the bank. Some customers still feel that the bank has treated them poorly or that they feel a product was mis-sold to them.

FOS deal with all kinds of financial products sold by UK banks and lenders. They produce annual reports, as well as various statements throughout the year.

Of all the financial products they deal with, they tell us that PPI is the most complained about financial product of all time.

Eye-watering figures

FOS recently released a statement that said they were dealing with or accepting 4,000 PPI complaintseach month.

Don't forget that as FOS deal with PPI complaints, they are also dealing with other complaints regarding other financial products. Apparently, the second most-complained about financial product is packaged current accounts.

PPI complaints represents 188,712 cases that they dealt with during the financial year 2015 - 2016. This represents more than half of its work load!

FOS has had to increase its workforce considerably, taking on some people specifically for dealing with PPI complaints.

More complex

FOS are also telling us that the PPI cases that people are bringing to the are more complex. This means they are spending more time and resources looking into people's complaints but are still finding in the case of the consumer more often than not.

Does your case need FOS?

FOS will only take referrals if you have tried to claim PPI compensation from your bank and the bank has refused your claim. You need to be clear about why you think you are owed PPI compensation and this is something that PPI Scotland can help you with.

It may be that you don't need the extra impact that FOS will bring to your case, especially if you tell your bank clearly why you are entitled to your money back. Call us to find out more!


The Major Players in the PPI Saga

You couldn't make it up. It is the stuff of heavy drama and plots within plots, that any writer would struggle to imagine.

But who are the major players in the payment protection insurance (PPI) mis-selling scandal?

The Banks and Lenders

The PPI mis-selling scandal affected the majority of UK banks, building societies and lenders so do not be lulled into a false sense of security, thinking it only affected the big names. They all soon realised that they could make big profits from selling this insurance policy at inflated prices, add a sprinkling of interest and their coffers swelled like they had never known before. Life was good and they were riding high until…

The Customer

… a customer decided they was not going to pay for a product that they did not want or need. The row that erupted bore consequences like no other. It transpired that the vast majority of banks had been indulging in this unfair, mis-selling practice for years. The scale of the problem was huge but, no one realised how big until the customer started the PPI fight back.

The Financial Ombudsman Service (FOS)

On the side of the consumer, resolving issues between the banking sector and the consumer is FOS. Before the PPI mis-selling issue, few people knew they existed but now, everyone knows who they are. Taken on hundreds of extra staff, they are finding in favour of the consumer in 7 out of 10 cases of PPI complaints.

The Financial Conduct Authority (FCA)

The FCA is the regulatory body for the banking industry in the UK; until the tail end of 2013, they were known as the Financial Services Authority. But with a revamp and beefing up of their powers - they are now seen to have teeth, so to speak - they had a name change but are now placed at the forefront of all issues within the banking sector.

Payment Protection Scotland

Like a knight in shining armour, we have helped hundreds of customers claim back PPI compensation, from a few hundred pounds to thousands. We have stood firm in the face of PPI adversity, working hard on behalf of all our customers. We have worked with customers to take their case to the FOS when the banks have said no.

We still offer this great service today to anyone who has PPI on their accounts and need help and guidance to make their claim. Check you accounts - have you found PPI? Contact us to find out more NOW!