Reclaim mis-sold PPI and feel better about your financial situation

Every day there are thousands of consumers who look to get their money back on mis-sold Payment Protection Insurance. This started happening upon the discovery of a massive mis-selling scheme employed by banks and other insurance brokers just to gain profit from the policy. And even though PPI was created to protect consumers from being in arrears with their credit accounts by covering a percentage of their repayments in the event of accident, sickness, or unemployment, majority of the sold policies were invalid and were deemed to be useless for others.

For one to take a Payment Protection Insurance alongside their credit card, loan or mortgage, they should pass the eligibility requirements. They need to be at least 18 years of age and not over 65, without any pre-existing medical condition, and must be employed full-time without any impending changes on their job status that could limit their chances of getting the benefits of the product. If one is not eligible and still was made to buy PPI, the policy will be good as dead as they won’t be able to have it cover their repayments if they needed it.

Also, PPI information should have been made clear to consumers upon being offered in the first place. Details of the costs and how it will be charged, the duration of the policy on the account against the expiration of the credit agreement itself, and other pertinent information must be discussed to the customer. PPI is also not a mandatory product or is a never a condition on the approval of any credit application.

Most importantly, signing up to PPI needs the customer’s awareness and permission for it. A bank or any insurance broker should not in any way attempt to forge the signature of their customers in the agreement form. And needless to say, their need of the product and its suitability to their current financial situation must have been clearly established before the sale.

If these were not talked to you about and you were still forced to buy Payment Protection Insurance, then you can make things better and right by reclaiming your money through the help of PPI claims advisers and companies or by doing it on your own. What you need to have to get started is a sufficient amount of information and paperwork to prove your case.

Start by checking your account documents for any PPI policy applied alongside it. You can have one on your credit card and another on your loan and mortgage. Look through your statements and credit agreement forms for any reference to payments made to PPI and the length of time it has been sitting there. You’ll be surprised at how much you have roughly paid to it over time, plus the interest it has accrued. [Read more...]

Rise In PPI Claims Helps To Boost Jobs

Recent increases in claims for compensation for mis-sold Payment Protection Insurance (PPI) have helped to boost the economy by creating extra jobs. Financial Regulator the Financial Ombudsman Service alone has had to hire an additional 1000 staff to deal with the increased volume of complaints.

The 1990’s saw a huge increase in the sale of PPI policies to customers as bankers saw an easy opportunity to sell the insurance to mortgage, credit card and customers taking out loans. Payment protection insurance is designed to cover borrowers on repayments should they fall ill or become unemployed. The mis-selling scandal resulted in many customers who did not ask for or require cover been sold the PPI policies and in some cases those who tried to claim on policies were unable too.

Within the last year the Financial Ombudsman Service has seen a 92% rise in complaints and the majority of these are regarding PPI. They receive around 400 calls per hour to deal with the fallout from one of the biggest mis-selling scandals in recent history. In 2011 the Financial Services Authority (FSA) ruled in favour of customers and Claims Advisory Groups and ordered the banks to pay up compensation which is predicted could reach around 20 billion pounds.

The current abundance of ex financial and mortgage advisors after the financial crisis in 2007 have left the Financial Ombudsman service with plenty of options for recruitment as they plan to increase their level of staff by as much as 35% from current levels of over 1900 staff.  Banks are also hiring additional staff to deal with new claims much of which is being dealt with by third party companies. Lloyds TSB the company most heavily involved with the mis-selling of PPI operates 8 UK claims handling centres several of which are operated by a third party company called Deloitte.

Follow this link for more information on Claims Advisory Group Jobs.

Claiming PPI

If you think that you have been missold PPI, then you may wonder how you can make a claim. There are two ways that you can approach it. You can either make the claim yourself or use a PPI lawyer to help you.

The claims process can just involve writing a couple of letters. You will need to be able to show evidence that you have paid PPI and that it was missold to you. If you have all of your paperwork and you can see that you were missold then this can be quite simple. It may be that you should never have been sold it as you did not qualify for making a claim. It may be that you were not aware PPI was included when the loan was sold to you and you did not want it or that you were told it was essential when it was not. You will have to get in touch with the financial institution and explain your case and they will pay you back what is owed.

However, if you are having trouble locating all of the paperwork, do not like writing letters or just do not have the confidence to make the claim yourself, then you could ask a lawyer to help you. They may also be useful if your claim has been turned down and you feel that you have a strong case, but want an expert to help you.

The lawyer will charge you, but you may find that it will be worth the cost, if you get back the money you should not have paid out and you do not have to go through the hassle of actually making the claim yourself. Some people just do not have the time to deal with this sort of thing, but want the money back that they are entitled to. Others do not think they can make the claim themselves as they do not have the confidence in their skills.

It is worth thinking hard about whether you can make the claim yourself. Find out more about the process and your case and see whether you think it is simple enough for you to be able to manage yourself or whether you think you will need some extra help. There is plenty of help around, in the form of free websites that you can look at as well as lawyers that you can pay for help.

Payment Protection Insurance Information

PPI stands for payment protection insurance and is an insurance policy that is sold alongside other financial products such as loans, credit cards and mortgages and can be found on hire purchase for car sales and some overdrafts on bank accounts.

Payment protection insurance is a standalone insurance policy that is offered to protect the policy holder from certain issues that people may face in life for example someone might lose their job and then they are struggling to make their mortgage repayments they can then make a claim on their payment protection insurance and that would then make the repayments for them if they are successful in their claim.

The main issue with PPI is that it was sold to customers who didn’t need or want the policy and in some cases they have lied to the customer about the policy.

Payment protection insurance may have been mis-sold to you for a number of reasons.

The customer was told it was part or the product whether it is loan, credit card or mortgage

The salesman made them feel like they wouldn’t get the product they wanted unless they took the PPI policy out.

The salesman didn’t mention that the policy was optional. PPI was just added to the financial product and nothing was said.

If you feel like you have been in one of these situations then you could be owed a refund.

There are many ways in which you can see about claiming the refund and I am going to show just a few ways in which you can do this.

The first way is to make the claim yourself to do this you will need to gather all the evidence you have and then find a template to formulate your complaint. You will also need to have a good filling system and access to a scanner and printer to deal with the correspondence that you are going to receive from the lender you are complaining about.

The next way is to contact a claims management company and all you will need to do is contact them to receive their claims pack and then complete it with your detail and the loan, credit card or mortgage number and who the complaint is against you have to send proof but does help you claim if you do and this is it they will then deal with all correspondence from the lender and they will update you every so often about how your claim is doing.

The final way is contact a legal representation this can be either a lawyer or a solicitor. This method of reclaim isn’t the quickest method and can cost you money out of your own pocket but is seen as a last resort if you have no success with a claims company.

Britain’s Largest Bank Increases Provision for PPI Compensation

It’s been another bad couple of weeks for the UK’s major banks, with the biggest bank in the country, HSBC, announcing that is has followed the lead of Barclays and Lloyds by dramatically increasing the amount it has set aside (provisioned in finance lingo) forPPI compensation.

Barclays started the trend a couple of weeks back, unveiling plans to increase their already sizeable £1 billion compensation pot by a further £300 million.

Lloyds, complaining of ambulance chasing specialist companies then revised their figure by an additional £375 million.

HSBC has yet to confirm their increase but it is expected to be significant. However, profits for the group still look healthy with analysts expecting the bank to post between $5.2 billion and $6.4 billion.

Most disgruntled consumers would be forgiven for thinking it ‘serves Lloyds right’ following their mealy mouthed complaints regarding the conduct of specialist claims companies. However they are not alone in thinking these types of specialist firm are doing damage to finance sector and consumer alike.

Following a meeting between two of the major UK consumer groups and some of the heavy hitters in the finance sector, it is hoped that many customers will feel more confident about pursuing a claim directly. Doing so could save most customers over £800 in increased compensation amounts!

Consumer Groups Encourage Independent Action

Figures released yesterday will not making good reading for the UK banks already suffering from the negative publicity surrounding the Payment Protection Insurance misselling scandal.

Leading consumer groups in the UK, think that customer are still entitled to in excess of £5 billion in compensation – alarming given that banks paid out half that amount already in 2011.

Sadly these groups think that many uninformed customers are missing out on a big slice of their compensation as they employ the services of a claims management company. This type of company, which as yet remains unregulated by the government, takes a 15-20% cut of the compensation awarded for their services. On average this is costing complainants over £800 per claim.

Moneysavingexpert is trying to highlight to customers just how straightforward and simple it is to pursue compensation from a bank if they feel that they were missold their PPI policy, launching a wave of radio adverts in the coming weeks.

This extra publicity will no doubt shine an even stronger light on the scandalous misconduct of banks who no doubt thought they could squeeze extra profits out of unsuspecting and loyal customers by selling them worthless policies … or in some cases insisting that the policy had to be taken out with them (which is strictly against their self avowed code of conduct).

Thankfully, for once, the UK consumer refused to take this treatment lightly and in 2011 a record number of complaints was lodged against the leading banks and other financial institutions such as store credit and insurance. Barclays was the most complained about individual bank, but Lloyds TSB has the ignominy of being the worst performer overall.

It appears obvious that the banks do not expect the furore to die down any time soon, as record numbers of people are being recruited into the banking system – largely to deal with the sheer volume of complaints that are being levied by customers!

PPI Claims Leads to Record Complaints Against Banks

It would appear that the furore over the mis-selling of PPI shows no sign of abating. Recently released figures show that complaints against UK banks increased by an astonishing 29% in March, hitting a record level of over 1.6 million complaints.

The most complained against individual bank was Barclays, who dealt with an astonishing 251,000 NEW complaint in the first 6 months of 2011 and an even higher sum of 281,000 for the second half of the year.

Bank of Scotland showed a similar trend opening 130,000 complaints in the first half of the year which rose dramatically to over 200,000 in the second half of the year. Lloyds second half year complaints tally was an eye watering 240,000!

Simon Thompson, Managing Director of Precision Claims, said it was unsurprising that the complaints were escalating as the scale of the mis-selling of PPI was pretty obvious from early on. He thinks banks will continue to see increased complaint levels and thinks the FSA should work even harder to force banks to contact customers who they know have been mis-sold policies.

As well as banks, insurance companies were also in the spotlight, with one major insurer Aviva, openingover 13,000 complaints.

The increasing number of people complaining about their treatment is leading to increasing business for PPI Claim companies, but more and more people are pursuing compensation under their own steam. With the help of a good PPI Claim Letter most customers can save time and money doing it themselves knowing that they have the support of the Financial Ombudsman if they are unhappy with the bank’s behaviour.