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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!

How to Claim PPI Compensation Before the Deadline

Even though PPI compensation has been around for years, it is about to end. The PPI deadline is only a few weeks away and that means people could miss out if they don't know how to claim PPI compensation.

We recap on what PPI is and how to go about claiming PPI compensation before the August 2019 deadline.

Deadline _clock

What is PPI?

PPI a specific type of insurance product that was sold alongside credit agreements, such as personal loans, credit cards, hire purchase agreements, car finance, catalogue accounts, store cards and many other kinds of credit.

It was originally designed to protect you, the policyholder, in the event that you were unable to make your monthly repayments on the loan. But, concerns were raised about how it was being sold and to whom, as well as its cost.

Why has the mis-selling saga lasted so long?

This is to do with the number of policies sold and the number of people duped into buying the policy by their bank or lender.

It is also because many people were mis-sold more than one PPI policy. Another reason is that the banks and lenders dragged their feet at the start of the process, hoping that the problem would disappear.

For many of the customers involved, they don't realise they have a claim for compensation, as they didn't realise they had been 'sold' it in the first place.

It didn't. 34 million PPI policies were thought to have been sold in the UK, affecting millions of customers.

The mis-selling problem

The way in which the PPI policy was presented to you at the time it was sold may be an indication of whether you were mis-sold it or not.

In some cases, the debate as to whether you were mis-sold the product or not can be complex. Thus, it is important that if you are unsure, you seek advice.

However, in the main, many customers were…

  • Told the purchase of the PPI policy was compulsory - it is NOT
  • NOT told the limitations, terms, conditions and exclusions of the policy - there were many and that means you probably weren't covered
  • NOT told of their eligibility to claim via this policy - in other words, many people were unable to claim on the policy as they simply were not eligible. Would you have bought it, knowing this?

But perhaps the worst-case scenario was when some customers, clearly making an emotive decision to borrow money were told that they were more likely to be accepted for finance if they took out the policy.

Claim YOUR money back

Don't let the bank get away with it!

Make sure that you check all the paperwork NOW for signs of PPI - should it be on there? Does it cover you for repayments on the loan etc.? Are you eligible to claim?

Why not let Payment Protection Scotland help you claim your money back?

Is Payment Protection Insurance Any Good?

PPI compensation may be coming to an end soon but when the PPI complaints deadline passes in August 2019, it doesn't mean that PPI will no longer be sold. But is there ever a time when PPI is the right decision?

Heavenly

A range of insurance products

There many insurance products that you can buy that cover all kinds of eventualities. From life insurance cover to critical illness insurances, there are many products, many brands and different levels of insurance cover, all at differing costs.

PPI is one of them. Despite is poor reputation as a result of the mis-selling scandal, it is possible to still buy PPI. In some cases, it may be the right insurance policy for you.

Clearly, protecting the things we love and own is important. There are some insurances that are more important than others.

Some insurances are compulsory;

  • Car insurance- compulsory and essential, driving in an uninsured vehicle will lead to serious consequences.
  • Buildings and contents insurance- important too, should anything structural happen to your property or should there be issues with the contents of a property and so on. Some mortgage companies will insist you have buildings insurance to cover the cost of rebuilding your property.
  • Critical illness cover and so on- protecting ourselves is important too, especially if one person is responsible for paying the mortgage and so on. This type of insurance can give us peace of mind.
  • Income protectioninsurance- is similar to critical illness cover but covers you to the level of your income.

With any kind of insurance policy, seek independent financial advice to make sure that the policy is the right one for you.  

What's wrong with PPI?

There may be some instances in which PPI is the right policy for someone to have. There are all kinds of variable and factors that affect this decision;

  • Benefits from work- many people have a generous benefits package from work which should be considered. For example, if you are off work for any length of time, you may enjoy three months full salary from work before your income drops. This means you won't need a PPI type or income protection policy to kick in until after 12 weeks of illness.
  • Check the insurances you already have- PPI in many cases was a duplicate policy. This means banks forced it on people, telling them that other insurance products were not good enough. They also said that a customer needed to take out the bank's own PPI product.
  • Value for money offered- PPI in the case of mis-selling was expensive and poor value for money. In other words, people were paying a hefty monthly premium for little cover.

Can you claim PPI compensation?

It may be that you can claim back all your PPI premiums, along with any other costs and fees including the commission paid if it was more than 50% and you were not told this.

There are many reasons why PPI was mis-sold. Many people - just like YOU! - have genuine claims for compensation. Are you one of them? Find out by calling Payment Protection Scotland today.

 

MORE PPI Questions, MORE Answers

Even though the PPI mis-selling debacle has been around for some time, there are still many questions that can remain unanswered. Take a look at some of the questions our team are frequently asked.

Mindmap

 

#1 How long does a PPI compensation claim take?

Once we send the letter of complaint on your behalf, the lender will typically take between eight and 12 weeks to investigate your claim and reach a decision.

What can add to this time is when we need to trace accounts and lenders on your behalf. We do this as quickly as possible so that your letter of complaints can be submitted to a lender or lenders, and your compensation paid.

However, if you decide to raise an appeal with the Financial Ombudsman if the bank refuse your claim, this can take many months. This is because the ombudsman is swamped with claims relating to PPI compensation, as well as cases concerning other financial products.

#2 How far back can a claim go?

PPI was mis-sold from the 1990s onwards and despite objections raised in the early to mid-2000s, it was a financial product that was still being sold to people who would not have been covered by it. The selling of PPI didn't stop until 2010.

There is no limit on how far back your claim can go which is why we encourage anyone who thinks they may have a claim to call us.

#3 What if I have no paperwork?

This is common problem for many people, but it is one that we can help with.

You will need to call our team who will talk you through the process. As long as know who the lenders were, we can issue a Subject Access Request instructing your lender to send us the information we need to assess your claim.

Financial companies must keep records of transactions etc. for the past six years. It may be that if your account was closed more than six years ago, they may not have a case to send us. However, we have helped customers with claims dating back 20 years.

It will take longer and take more perseverance on your part and ours, but we will do all we can to help you make a claim as getting your money back is important.

#4 I have an IVA. Can you still help me?

We can work alongside you to make a claim but you will also need to be up to date with your payments under the Individual Voluntary Agreement and should also consult your debt advisor before making a claim.

At Payment Protection Scotland, we have already successfully claimed back PPI compensation for thousands of customers. Are you next?

PPI Claims are Being Cut Off This Summer!

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

Summer

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 29th 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.

Can I Claim PPI Compensation…?

… if I cannot find any paperwork or details relating to a PPI policy on my accounts?

In essence, you would need to confirm one way or another with your bank or lender that you had a PPI policy on your account.

Question -mark

Banks and lenders are now more willing to share this information, although they can still be difficult. They must respond to you in a timely manner. If your account is many years old, they may charge a fee to search their 'archives'. If you think this is unfair or excessive, you can complain to them. They may waive the fee but if not, you can always ask the Financial Ombudsman to look into the issue for you.

If you don't have any luck with the bank, you may be able to find this information with one of the many credit reference agencies. There may be a fee for this.

... if I am in arrears with the bank or have a poor credit rating?

Some critics of the banks say that the unfair way that they have treated people by selling them an overly-expensive policy has led to many people falling into arrears with their accounts. Some customers found that once PPI was added to their loan or credit card, for example, the repayments were far higher than what they thought they would be.

You can claim PPI compensation if you are in arrears and will not adversely affect your credit rating. The bank must pay you the money although they will suggest you pay off the arrears.

… if I don't know why it was mis-sold to me?

There are many reasons why PPI was mis-sold. For example;

  • It was added to your account after you have bought the loan or credit card
  • It was not sufficiently explained to you, such as the exclusions under the policy and so on
  • You were self-employed, retired, unemployed, working a zero contract, working a temporary job or worked part-time at the time PPI was sold to you - the policy would not have covered you
  • You just assumed it was part of the package

Our team can help you with your claim as there are many other reasons why PPI policies were mis-sold to people.

… if me and my spouse are no longer together but the loan was in joint names?

Many couples are claiming compensation for mis-sold PPI and are doing so after their relationship has ended. In the case of PPI, it was not only debt specific but also linked to one person although you probably weren't told that when you took out the loan and the insurance policy.

But if you both contributed to the monthly premiums, you are technically both due money back. Our team at Payment Protection Scotland can help you with joint claims but both parties would normally need to agree to the claim. There are exceptional cases where one spouse can make a claim without the other.

PPI – The Who’s Who? Guide

As with most things, there are several agencies and organisations involved in the financial markets here in the UK. When it comes to the PPI scandal, it is easy to be confused as to who is who…

Who

The Competitions Commission

This body closed on 1st April 2014, its powers and duties now part of the Competition and Markets Authority (CMA).

It will, however, we forever linked with the start of the PPI compensation process after delivering a damning report on the way that PPI was sold prior to January 2011. It was from this hard-hitting report that steps were taken to begin the compensation process.

Citizens Advice

In 2005, Citizens Advice, the body that helps consumers with consumer laws and complaints, raised a super-complaint with the Office of Fair Trading regarding the selling of PPI and the shape it took.

It took another six years from this super-complaint for judicial reviews to conclude and for the process of PPI compensation to begin.

Financial Ombudsman Service

The FOS is inundated with PPI complaints from irate customers who have made complaints relating to the sale of PPI, only for the bank to refute their claim.

As the final port of call, the FOS will look at the complaint on behalf of the customer and make the final decision. In more than half of the cases it looks at, they uphold the customer's complaint which means the bank must pay compensation for mis-sold PPI.

But PPI cases are not the only ones they look at, although currently, PPI complaints is a large bulk of their workload. They address all cases brought to them by consumers unhappy with the way banks and lenders have sold financial products to them.

However, as a customer, you must first approach your bank regarding your complaint and only then, if you are unhappy with the response, will the Ombudsman take on your case.

Financial Conduct Authority

The FCA is the regulator of the banking industry. They oversee everything banks and lenders do. If they are unhappy with some aspects of how banks do business, they investigate and tell banks what need to change.

Prior to the PPI scandal, there was no regulator that could insist that the banks change the way they do things. The PPI mis-selling scandal highlighted many things, one being that the banks were 'free' to do what they wanted and there wasn't really anyone who could stop them.

This is why the PPI scandal grew to be such a colossal problem.

Patment Protection Scotland is here to help you claim your money back. Find out more by calling our team today.

Do You have a Question About PPI?

Have a question about payment protection insurance (PPI) that you have always wanted to ask? We have the answers!

Question

My sister made a claim for PPI compensation on her credit card and received nearly £800. When I made a claim for mis-sold PPI on my credit card I only received £365! Why do some people get massive payouts and others a lot less?

The reason why some people receive more is down to a number of factors, all of which vary from case to case. With credit cards, the amount of PPI compensation will depend on;

  • How long you have had the account
  • The amount of credit used - in this case, one customer may have running their cards at their limit but the other customer a lot less
  • How PPI was calculated on the account - in some cases, it was applied as a percentage of the amount outstanding each month

My bank told me I had to have some kind of insurance product and recommended their own. This means I agreed to it so I don't think I can claim any money back. Can I make a claim for PPI compensation?

Many customers were told that they had to buy insurance to protect repayments on a loan. In the case of mortgages, this is common practice just as a mortgage lender will often stipulate you must have buildings insurance on a mortgaged property.

What they cannot do is stipulate which insurance provider or product you must have and, more importantly in this case, they cannot stipulate that you MUST buy their own. This is what happened, however when it came to PPI. By shopping around, customers would have found that they could have a better quality product but with a lower premium.

I have read that if my bank refuses my claim then that is the end of the matter but then a friend of mine has just received a handsome payout after an organisation told the bank they had to pay her back. How can I benefit from this?

The organisation you are talking about is the Financial Ombudsman Service. This is the body that looks at cases of complaints that customers bring to them about a financial institution or a product they have sold.

They deal with all kinds of products, not just PPI. However, before they will look at your case, you will need to have approached your bank or lender first. If they refuse your claim but you still think you have a case or are unhappy with their reasons why you are not entitled to PPI compensation, you can refer your case to the Ombudsman.

Why not call Payment Protection Scotland to find out more?