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Archive for tag: Payment Protection Scotland

PPI – Costing Time AND Money to Sort Out

The payment protection insurance (PPI) mis-selling saga is hitting banks in terms of money, resources and time.


Costs for some banks in the thick of the PPI scandal - such as the biggest bank, Lloyds Banking Group - are spiralling and not just in terms of how much compensation they are paying out. The internal wage bill for banks and lenders of staff dealing with PPI claims is ever growing, with many banks also relying on agency staff too. And with the August 2019 PPI deadline looming, if the expected avalanche of PPI claims happens, this wage bill could significantly increase.

How much time per case?

Even straightforward cases suck time and resources. For example;

A straightforward PPI claim from a customer was that she was covered by her employer's sick pay policy, therefore, didn't need the PPI on her loan. A quick check on the status of this sick pay meant that this was indeed the case and her PPI compensation claim was upheld - in other words, she is entitled to receive PPI compensation.

This process alone took over several hours to conclude, and now the bank representative needs to work out how much PPI compensation she is entitled to receive.

More complex case take many more hours to resolve and this is before any compensation calculations are made.

PPI Resources

Look at the investments banks in the UK have to make in order to process PPI compensation claims (2012/3 figures, therefore, these will have changed):

  • Barclays employed 3,400 staff across 10 centres, 8 of which are in Britain and 2 in India, to process PPI claims. Their compensation bill at the time was £12billion and growing, a figure that seems set to rise as an estimated 34 million policies were sold since 2001 across the banks.
  • By January 2013, Barclays employed 600 people in a centre in south England, working two shift patterns from 7 am to 11 pm.
  • Barclays are not the only bank gearing up to meet the deluge of PPI compensation claims - Lloyds Banking Group had 6,000 staff working on claims, HSBC has 600 with the Royal Bank of Scotland have 1,800 staff working through PPI compensation claims.

Make a claim today

Some customers prefer to make their claim through a claims management company (CMC). As a reputable CMC, our terms and conditions are transparent and easy to understand - all you need to do is call us and let's talks about making a claim for PPI compensation on your behalf.

All you need to do should you decide to use Payment Protection Scotland for your compensation claim is complete a few simple forms - and then sit back and relax and let us do the hard work.

Are you missing out of money with your name on it?

If you knew, with certainty, that you were owed thousands of pounds, what would you do? Not bother or claim it back as fast as you could?


The likelihood is you would claim it back. With only a simple letter, you could claim back compensation for mis-sold payment protection insurance (PPI)… and this could be worth thousands of pounds!

How to claim PPI compensation

Claiming compensation for mis-sold PPI is straightforward. What can present difficulties is when the bank or lender deny your claim or eligibility.

There are ways that this can be challenged.

Steps to Claiming PPI compensation BEFORE the 2019 PPI deadline

In the first instance, you need to do the following…

Check ALL accounts

PPI was added or sold to customers on them opening a variety of credit facilities, such as catalogue accounts, car finance, unsecured or personal loans and, in some cases mortgage too. Credit cards were also commonly targeted by banks but any account in which you borrowed money could be affected by PPI

Know what you are looking for

PPI is a generic name for an insurance policy that promises to make repayments on the account should you be unable to do so due to illness, unemployment etc. Different banks or financial companies called their PPI type policies different names; if you are unsure, call PPI Scotland for help.

Why were you mis-sold the policy?

This is the next question you need to answer as part of the whole claiming PPI compensation process. In order to successfully make a claim, you not only need to identify you have PPI, but you also need to prove that it was mis-sold to you. There are many reasons why PPI was mis-sold to customers, from not being told about the exclusions under the policy to not being told that about the policy at all!

Payment Protection Scotland can help you understand why you were mis-sold PPI as these reasons are important in claiming your compensation back.

Put your letter together

For many people, they find this difficult or and not so confident in dealing with banks or lenders. PPI Scotland can help you put together your compensation claim letter, full of detail. Send it off and wait to hear back…!

But, if they say NO…

This is not the end of the PPI compensation story. You still have one more avenue to explore and this is asking the Financial Ombudsman Service to look at your case and make the final decision. Our team will guide you through this process.

IF you try to claim PPI compensation AFTER the 2019 PPI deadline

Unless the policy was sold to you after July 2017, you will no longer be able to claim your money back. Can you afford to take the chance?

Claiming PPI compensation is something you can do if you have been mis-sold PPI… after all, it is YOUR money!

How Claiming PPI Compensation Will Make for a Better Banking System

Flexing your consumer muscle - how claiming PPI compensation will make for a better banking system for YOU!

The mis-selling of payment protection insurance (PPI) has rocked the British banking industry. With heavy fines and an ever-growing compensation bill, banks have been paying the price for mis-selling a policy that few people needed.

Taking part and claiming your money back will not only benefit you, but also help to improve the banking system. Hopefully, with new policies and rules in place, something like this should never happen again.

Setting the scene for mis-selling

Incentives are an important motivation tool in all kinds of settings. From students meting a deadline, to a sales person selling a number of products per week or on a monthly basis.

Hit these targets and win a prize, so to speak. Or, even better, surpass these weekly or monthly targets and get an even bigger prize. Keep on doing it and the rewards are vast.

Whilst these targets can propel people and business on to bigger things, when the consumer is lost in the process, it sets a dangerous precedent.

In other words, with the selling of PPI being on a commission basis, the sale and bank staff switched the focus from what was best for the customer, to what was best for them.

Sell PPI policies to all customers, even if they didn't need it or had no need of it, but still get a handsome commission payment.

But the individual bank staff members were not the only winners - the banks were too. They were making huge profits on every PPI policy sold, including the one that was sold to you.

For the banks and their employees, it was an all-round win-win situation.

The losers

The loser was YOU but there was also another loser - the reputation of the banking industry as a whole.

You should be able to trust your bank. After all, they hold something incredibly important to you; you bank account in which your salary arrives each month. The mortgage on your home. The insurance, in some cases, that ensure your family are looked after in the event of a disaster or emergency.

If you cannot trust them with your financial well-being, who can you trust?

And this is why flexing your consumer muscles, claiming PPI compensation is adding your voice to the bigger picture. That the iconic British banking industry needs to be what it once was. An icon of trust and financial ability and not based on commission based selling.

Claim your money back - contact Payment Protection Scotland.

PPI - The Bank Said No...

The obstacles that can stand in the way of a successful compensation claim - and what can be done about them!

There are all kinds of scenarios and situations that can arise when attempting to make a claim for compensation after being mis-sold a payment protection insurance (PPI) policy. Here, we look at some of the most common ones, and what (if anything), can be done to rectify the problem.

The bank said no

As part of their decision, they should explain fully to you the reason why they are refuting your claim for compensation. There are all kinds of reasons, from saying that the policy was fully explained, you needed this kind of policy and so on.

Can anything be done about it?

Yes. You can ask the Financial Ombudsman Service (FOS) to look at your case, but you will need to tell them why you think the bank's decision is wrong and unfair. You will also need to be prepared to wait, as it is currently taking FOS around 12 months to deal with PPI cases their workload is so heavy.

I am in debt or arrears

There are many people who feel or assume that they cannot make a claim for PPI compensation because they are either in serious debt with a bank or lender, or that their account is in arrears.

There is nothing that can stop you being entitled to make a claim, but if your claim is successful the bank or lender may apply this to your account to bring it up to date. However, it pays to get advice and help as it may be that some of these costs that have plunged you in to arrears are actually linked to the PPI policy. You need to be sure that every penny due to you is paid back.

Can anything be done about it?

Yes, with the help of a reputable claim management company such as PPI Scotland, many people in debt and arrears have successfully claimed the money that they are entitled to. Those in an IVA arrangement helping to pay off their debts can also make a claim.

I have no paperwork/can't remember why I agreed to the policy and so on…

PPI was mis-sold to thousands of people in all kinds of different ways. For example, some people were sold the policy over the phone in a marketing call. Others had the policy linked to their account without their specific permission and some people cannot remember why or how they agreed to it.

The rules governing the sale of financial products is clear. The customer should be made fully aware of the advantages and disadvantages of buying a product, something that did not happen in the case of PPI.

Can anything be done about it?

Yes. Contact Payment Protection Scotland to find out more.

PPI – The Charges Laid Against It!

Payment protection insurance (PPI) is a product that for some people, could be a great policy to buy in to.

Intended to protect and make repayments on loans etc. should you be unable to do so, sounds a wise financial move BUT, although the product is now considered weak alongside its other income protection cousins, PPI was also mis-sold.

But did you know, back in 2008 when initial concerns were raised and then acted upon, there were 4 charges laid against PPI that meant banks were reaping the profits, whilst the customer premiums lined the banks' pockets…

Charge 1: Expensive

We know now that people were paying over the odds for a policy that, if their claim was successful, would, in reality, deliver very little. In some cases, the cost of PPI added as much as 20% to the cost of the loan, after interest! The consumer organisation Which?, a virulent campaigner against PPI back in 2008, also found people who saw the cost of their double when PPI was added to it.

Charge 2: Ineffective

Unlike other insurances, the chances of claiming against the PPI policy were low with Which? suggesting that banks and lenders were deliberately contriving to make this the case. If they could decrease your chances of claiming on the policy, the more money they would not only make… but keep. Estimates suggest that there was only a 15% chance of a claim being successful, an incredibly low figure compared to other insurance products.

Charge 3: Mis-sold

Of course, we all know that PPI was mis-sold and this is the basis on which hundreds of thousands of customers are making PPI compensation claims. There are nay reasons why PPI was mis-sold to customers, from it simply being added to it being sold to customer that the bank already knew would be unable to claim e.g. those self-employed or retired, for example.

Charge 4: Inefficient

And finally, the consumer organisation Which? pointed out that for those customers that did attempt to claim under the policy, that the length it took for the claim to be settles was far too long. Customers, despite being in desperate financial straits and having a totally eligible claim, the time taken to pay out on the policy was incredibly long and, some would say, deliberately complicated and slow.

As part of this whole process, some of the biggest, well-known and trusted UK banks have received hefty fines for poor selling tactics and less-than- honest selling methods.

If you had a loan for any purpose from the mid-1990s onwards, the likelihood is that you have been affected by the mis-selling of PPI. Contacting Payment Protection Scotland does not place you under any obligation to make a claim for PPI compensation through them… so why not find out more?


Lost Paperwork Could be Worth a Fortune…

With many banks adding even more to their PPI compensation pots, isn't it time you checked ALL your accounts to see if you have payment protection insurance (PPI).

But, I've lost the paperwork!

Many customers find that they are in the dark about whether they have PPI on accounts, including those that were recently closed, simply because they cannot find the paperwork. This can be a case if mislaying the documents or they were lost in a house move, for example.

So, all is lost then…?

No, not necessarily as there are a few ways in which you could possibly get 'evidence' that you had or have PPI on an account.

Start with…

Ringing the bank, lender or building society

At one time, the banks etc. were rather reticent in giving out this information but attitudes have changed slightly and banks are now eager to be seen to be helping people out with their PPI compensation claims, recognising the catastrophic impact the PPI mis-selling scandal has had on trust.

To secure a quick and efficient reply from your bank or lender, have as much detail as possible about the accounts you think you may have had PPI added to, important if you are unable to locate account numbers etc.

Be warned however, that banks, lenders and building societies can charge you a 'search fee' for this service; there is no set fee for this, with the legalities of it being the sum charged must be 'reasonable' for the service being requested.

If this yields no results…

Take a look at some of the records kept by credit reference agencies. There are only a few reference agencies in the UK and some of them will keep some of the original details involved in your loan, mortgage, credit card etc. Again, this will include a fee - usually a joining fee, followed by a regular monthly payment - and is a good way of examining the detail that various companies hold on you too!

You may find…

That your bank contacts you in the near future anyway, as well as any other company or agencies from whom you may have borrowed money. They are being told to do this by the Financial Conduct Authority to make sure that as many people as possible are made aware that they could have a claim for PPI compensation.

Many people are simply unaware or think that the PPI mis-selling scandal does not apply to them, so could miss out on thousands of pounds of their own money that they are entitled to claim back. Hence, banks, companies and lenders are being urged to write to all potential PPI compensation claimants.

But when or if you get a letter, you must act within 3 years of the date of the letter. This is not a PPI 'law' but a consumer law that gives customers 3 years in which to make a claim for 'faulty' services or goods.

There is another option: contact Payment Protection Scotland!

I Don’t Think I’ll Get Any Money Back…

Here at Payment Protection Scotland, we are contacted via email and phone with queries made by people from all walks of life. They all have one thing in common - the mis-selling of payment protection insurance (PPI).

But, some customers are more confident that others about making a claim for PPI, and here's why;

I agreed to PPI. I doubt I'll get money back.

The SITUATION that many people found themselves in at the time they were asking for a loan, mortgage, credit card, car finance and other credit products was an emotional one. After all, if you could afford to pay for these things outright, very few of us would ever seek a loan of money from a bank, building society or online lender.

And so, they either applied online for finance or sat face-to-face with a bank representatives and poured out their financial woes to someone they thought they could trust. They were 'sold' the loan and then they were 'sold' an insurance package that would mean they were worry free if they found themselves in a situation in which they could not make repayments.

As a result, many people did AGREE to PPI being added to their accounts and for this reason, many potential customers of Payment Protection Scotland think their claim for compensation and premiums paid is null and void.

This is not the case!

i. It has since come to light that as part of this process, the PPI policy was not always explained fully to customers. They were given the bare details that once the customer's agreement was secured, the representative did not go on to explain some of the terms and conditions in detail

ii. Some customers were advised the policy was the right one for them… without really explaining to the customers exactly why this was the case

iii. Some people were given the 'impression' during the loan or mortgage application, for example, that the customer was more likely to secure a favourable decision in their favour if they were to take out the policy - hence customers agreed to having the policy added to their account

iv. Likewise, many customers were simply told about the policy and the customer agreed, assuming in some cases it was all part of the same package. Customers were not made aware that they could actually shop around and get a better deal.

So if you DID agree to PPI, you may still have a claim as the likelihood is, the policy did not match of fit your lifestyle or you.

What to do about it…

Call Payment Protection Scotland now and get the low-down on how to make a claim with our help!

How Much Can I Claim?

We are asked so many questions about payment protection insurance (PPI) and how much money customers could potentially claim back and so we thought we would answer some of those questions here!

Read on and if you think you have a claim for PPI compensation why not call us to find out more?

Is there a limit on how much I can claim?

No, there is no minimum amount to claim and no maximum that can be claimed. The 'average' claim is around £2,750 but some customers have claimed much more, whilst others have claimed less.

Why is the average figure £2,750?

This is a calculated figures, recognised as a result of the value of the many thousands of policies sold across the UK and the number of policy holders it affect. This is why this figure will change.

How much can I claim back on my credit card?

Credit card PPI compensation payments tend to be a less than loans or mortgages, simply because the amount lent to people tends to be lower; limits on credit cards, for example, hoover around the £2,000 to £3,000 mark although some people have a higher limit.

But, how come some people are claiming back high amounts on their credit cards?

When it comes to credit cards, the amount you claim back will depend on:

i. How long you have had the credit card for

ii. How many credit cards you have

iii. The interest applied to the credit cards balance and PPI needs to be accurately calculated

Those people who have claimed huge PPI compensation pay outs had more than one credit card, which they had active for over 10 years with the limits across the cards being reached or, for many people, exceeded the limit. The addition of interest also significantly increased their PPI compensation claim.

If I am in debt, what happens? Can I still claim?

Yes you can! If you have PPI on your loans, credit cards etc. this will, in all likelihood, have contributed to your debt issues. PPI is known to have been expensive and over-priced for the cover it offered, meaning that the monthly payments people were making on loans etc. were very high.

If you are in arrears with a lender, the amount of PPI they owe you will first be applied to the amount you owe and you will then receive the rest. In our experience, people in debt still receive a lump sum that is very welcome!

How much does it cost?

With Payment Protection Scotland, making a successful claim will cost you 25% of the final settlement amount you receive. 

Check the Small Print! And Other Helpful Insurance Shopping Tips!

The mis-selling of PPI is a scandal that has been around for many years now. Hundreds and thousands of customers are enjoying a financial windfall that either places them back in the red or takes them to the far-flung shores they have always wanted to visit.

But as many people are still yet to make their claims, the financial industry are still advertising to customers to protect themselves in the event that their income does not remain the steady stream that it is today.

Bearing this in mind, what lesson can we learn from the PPI mis-selling scandal?

Tip 1: Check the small print!

PPI was mis-sold to thousands of customers in so many ways, but one was the failure of the bank's representatives failing to draw the customer's attention to the small print. This important, but sometimes hard to read print at the end of the agreement, is important. It sets out the terms and conditions of being able to claim on the policy, as well as what is what is NOT covered.

Tip 2: Compare prices

Like many other purchases in life, you would not dream of buying a large purchase without comparing what it does and what you get for your money - buy any type of insurance, including PPI is no different. And this was something that the bank told customers they could not do! It was their PPI product or no loan in many cases.

Tip 3: Check out the facts before you buy

There were also many cases of PPI mis-selling that focuses on the 'compulsory or not?' debate. Many banks and lenders told customers it was essential and compulsory they bought PPI but this is incorrect. The only insurance which is compulsory is car insurance but, you may find that your mortgage provider insists on building insurance (not content insurance) as part of the mortgage deal.

BUT, mortgage providers cannot stipulate their own products unless you have signed an agreement that you buy from them, and only them. Do not be bamboozled again into buying a defective PPI type product that is too expensive and something that you do not need.

TIP 4: Exercise the cooling off period

As part of a set of improvement measures since the PPI mis-selling scandal broke, banks and other lenders must give you 7 days since you signed the agreement for your main loan product before they can offer you any additional product and, if they do, they must tell you clearly why they think this product is the right one for you.

Claiming back your PPI premiums is too good to miss! Get help from a leading claim management company, Payment Protection Scotland!


How do you Know you Have Been Mis-sold PPI?

Many customer when they call us here at Payment Protection Scotland are always unsure that the PPI mis-selling scandal applies to them.

We are always conscious here of the scale of the mis-selling, believing wholeheartedly the estimates and approximations given by consumer organisations and financial regulators, that thousands of people were affected by the mis-selling of payment protection insurance (PPI).

Not only that, even if you were aware that you were sold PPI, the likelihood is that you were still mis-sold it, believing it gave you better protection than what it afforded.

But how do you really know you were mis-sold PPI?

There are many recognised mis-selling reasons including:

The impression or implication that you would be more likely to be successful in gaining the money you needed to buy your home, build the extension, by the new car or whatever it is you are borrowing the money for.

Loan applications are decided on merit, usually with your credit score providing the basis of the yes or no answer, along with the level of interest rate they will charge you. The purchase of any additional product alongside your loan, credit card, mortgage etc. should make no difference what-so-ever!

Not being informed or not giving your explicit consent or, in some cases, not realising the tiny ticked box at the end of the application form would cost you so much money in PPI premiums!

Many customer, particularly those who bought loans or credit cards online, did not realise that at the very end of the application form (so far down, at the end of the small print) was a box, already ticked that gave permission for PPI to be added to the account. For other customers, PPI was added later in the life of their account and informed of the lenders decision by mail giving the impression it was a compulsory, no-opt out purchase.

This practice has now been stopped by the predecessor of the Financial Conduct Authority (FCA). Customers must have the decision whether to opt in, and not to opt out.

You were told what a good idea it was, and how it suited you perfectly as a policy…

This is known as an advised sale, something that is common within the financial industry. If you seek any financial advice on any product and a range of policies are recommended to you, you should receive written confirmation that clearly states WHY these policies are suitable for you and your circumstances.

Many PPI customers were not given this information and so cannot recall why they were told PPI was the right option for them. This constitutes mis-selling.

Not sure if you were mis-sold PPI or not? Contact Payment Protection Scotland to find out more on the mis-selling reasons…