The City watchdog has promised to put to light the unfair practices of some claims management practices and to enforce tighter rules in the industry that has made billions over the banking industry’s mis-selling of payment protection insurance policies.
In its published draft of CMC regulation, which it intends to pass on April 1, 2018, Chief Executive Andrew Bailey stated that CMCs are necessary to help provide justice and provide redress. The FCA designed the rules in a way that will root out poor conduct and make CMCs “trusted provides of high-quality, good-value services.”
Part of its new implementations talk of legitimate procurement of “lead lists,” which CMCs use to obtain a consumer’s name, and having to state the alternatives to claims services, such as the Financial Ombudsman in their marketing and pre-contract disclosures.
According to First4Lawyers’ Qamar Anwar, the tighter CMC regulation is a great step towards improving the sector’s reputation and performance. He believes the new rules will help the consumer navigate an “alien industry at a difficult time.” Anwar adds that CMCs will not be seen as “call centres with little regard for the well-being of those they’re trying to contact through cold calls and text messages.”
Self-Invested Personal Pensions or SIPP owners might find themselves making a claim for mis-sold pension investments in the next few years.
Claims management expert Rob Ridge from Money Redress stated Britons are unaware about the scandal surrounding SIPPs. He speculates it may deal further damage than mis-sold PPI as those mis-sold investments can receive a maximum of £50,000-£150,000 for every recompense.
Ridge speculates the SIPP scandal will reach heights above £10 billion, which is 25% of the £40 billion payout for payment protection insurance.
The mis-selling storyline happens as so: Financial advisers out to scam savers will promise them massive 20 per cent returns on their pensions reinvestment incrementing each year. The get-rich-quick scheme involves seemingly feasible investments such as airport parking spaces, holiday properties, and green energy projects.
While the saver receives an increment to their pensions, it is not as high as their initial investment. The agreement will never guarantee returns by the promised deadline.
Experts and observers found the SIPPs circumstances similar to the initial discovery of payment protection insurance mis-selling. Ridge believes the impact of the new scandal to the newly-recovering financial services industry is unprecedented.
PPI claiming is set to end on 29 August 2019. With the new scandal looming on the horizon, it is possible the industry’s consumer confidence rating will once again be at an all time low.
The banks will refund your successful PPI complaint. Because of their bank employees’ unscrupulous sales tactics, banks now take the stage in refunding consumers their rightful refund and compensation for an insurance policy they cannot hope to use due to their ineligibility.
You are mis-sold PPI if you were already sick, injured, unemployed, or self-employed during the time a bank employee or financial adviser sold the policy to you. In addition, if your financial adviser did not disclose substantial commissions (above 50% of the insurance policy’s sale value) from your policy, consider it mis-sold under the Plevin clause.
What Do You Need for a Successful Claim?
To prove your sickness, injury, or lack of employment or self-employment, you will need documents to serve as evidence.
For sicknesses or injuries, a medical certificate from your attending physician during your treatment will indicate that before the PPI’s sale, you were already suffering a malady that renders you ineligible for the policy’s benefits.
For unemployment or self employment, your last payslip or business permit are enough to validate that previous to buying the policy you were unemployed or running your own business.
What To Do In Case Banks Reject Your Claim?
Banks will do anything in its power to avoid refunding you at any point. However, the Financial Ombudsman Service will investigate in-depth to help you reclaim all your refunds. The FOS’ decision is final. If its judgement was not in your favour, then you will need to settle with the bank’s decision.
The FCA’s 29 August 2019 deadline is coming closer. Before you lose your chance to claim your refunds, it is vital to make a claim as soon as you possibly can. Unfortunately, that means having to file your complaint alongside hundreds of thousands just about to do the same. Here are three common PPI claim difficulties and the solutions you can take to ease the process.
Proving You Were Mis-Sold
Bank employees used unscrupulous tactics to sell PPI to ineligible customers. If you have documentation that proves you were unemployed/self-employed, injured, or suffering a medical condition during the time you took out your financing with PPI, you can easily prove you were mis-sold the policy.
Banks Only Keep Six Years of Transaction Records
Banks will try to keep customers off their back by citing they only keep six years worth of transaction records for any financing including mortgages. However, a credit score review allows you to see the entire transaction performance beyond six years for any financing you took out including all the PPI repayments you’ve made.
Going to the Financial Ombudsman for Re-Processing
The FOS will give the final verdict for any mis-sold PPI conflict but takes plenty of time from customers having to do a second round of making claims. By contacting a PPI claims company, they can save time and allow themselves their full refund and compensation.