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Archive for tag: PPI and the Banks

PPI is Not Just a Banking Problem

Payment protection insurance (PPI) is a product that people commonly associate with mis-selling within the British banking industry. To a certain extent, they are not wrong but there are other lenders affected too.

Virtually every bank and building society are affected by the PPI mis-selling scandal, although the severity and scale of the mis-selling of PPI to customers varies significantly from one banking group to another.

But you may be surprised to learn that it also affects large companies such as Argos and Homebase too. An announcement at the start of March 2014 by the company who owns both these brands have put aside £25m to compensate customers mis-sold PPI, have led to some people asking why.

Store Cards and Loans

Here at Payment Protection Scotland, we have always encouraged customers to check all credit accounts and facilities that have had in recent years, including such things as store cards.

Many customers bought kitchens, TVs and larger appliances on credit from either Argos or Homebase using the credit facility that these brands offered at the time.

Home Retail who owns both the brands, accepts that there was a problem, although on a smaller scale than the banks. Its financial arm, regulated by the Financial Conduct Authority, have taken the responsible route of writing to customers.

Just like the letters that banks have sent their customers, if you receive one then you must act quickly if you think you may have some kind of loan or store card with Home Retail and make a claim for PPI compensation.

£25m equates to at least of quarter of the annual profits that Home Retail has made in recent years, therefor it is a significant sum.

If you think you have PPI on an account with Homebase, Argos or any other bank or lender, then now is the time to contact Payment Protection Scotland…

  1. Contact us by using our online contact form or by calling us
  2. Have the details of all your accounts in which you know or think you have PPI on them, including paperwork relating to a new kitchen, bathroom or large appliances in which you paid back in instalments
  3. If you cannot find the details that shows you have PPI on the account, we may be able to help you find this- there are various options for doing this
  4. Once the forms are signed and returned to us, you can sit back and relax and let us do all the hard work!

We promise to stay in touch with you throughout the process as well as working to get the very best result for you - all this for one fee too!

How Much is the PPI Scandal REALLY Costing the Banks?

The scandal surrounding payment protection insurance (PPI) and the mis-selling surrounding the product doesn't seem to be going away any time soon. But, with the banks' PPI compensation bill continuing to rise, will there ever be any end to the scandal?

The bill so far…

The scandal erupted many years ago but compensation did not start to run freely back in the direction of the customer until 2012. And even then, the amount being awarded and what the customer was entitled to was not always the same figure. Invariably, the banks were still short-changing their customer.

But as we enter the 5th month of 2015, the combined total of PPI compensation monies that banks and lender in the UK has set aside now stands at a whopping £24.4billion. This figure supplied by the respected consumer organisation 'Which?', proves how big this mis-selling scandal is.

The breakdown of PPI compensation, bank by bank

There is no bank nor lender that has not been affected by the mis-selling of PPI; it was common and widespread practice that continued for many years. As an expensive product too, it cost the consumer a lot each month but, for the banks, it made them massive profits.

Some smaller banks, lenders and financial institutions did not sell it on such a huge scale or for as long and so they have, by this point, compensated all their customers - or so they say.

The larger, more well-known banks, however, are still in the process of compensating thousands of their customers, hence they keep adding more and more money to their compensation pots:

  • Barclayshas increased its provision by £200m in the final three months of 2014, taking its total to £1.1 billion
  • Santander, the bank that advertises it will pay you to have a current account with them, set aside an additional £30 million
  • Lloyds Banking Group, partly owned by the British tax payer, added another £700 million to their pot in the final 3 months of 2014, taking their compensation 'fund' to a staggering £2.2 billion, double that of Barclays
  • RBS, a bank that is owned in the majority by the tax payer, increased their provision by £400 million bring the 2014 total that they added to their pot to an addition £650 million overall
  • HSBC, another bank hit hard by the PPI mis-selling scandal added another £278 million, making their total for 2014 to be £624 million

These figures and their own are enough to make anyone question the sheer size of the problem, but when you consider that these figures are in addition to the billions of pounds that the banks have already set aside.

Have YOU claimed?

If not, then now is the time to act. Why not let Payment Protection Scotland help you?