UK Banks Still Have 15 Million Claims to Go Before PPI Deadline

August 17, 2017
by admin in PPI News

Lloyds revealed that it is only halfway to resolving all the PPI policies the bank has sold since the year 2000. Investors were shocked when the bank said it had only resolved half of the 15 million PPI policies. The UK bank had added £700m to its refund package. The bank had hoped its earlier allocation in 2016 would be the last.

The taxpayer-backed bank said it had sold an estimated 15 million PPI policies with mis-sold products unaccounted for. However, the bank’s total bill of £18bn is about to increase in the coming years before the resolution of PPI in 2019.

UK Watchdog the Financial Conduct Authority had set a PPI claims deadline to urge consumers to make a claim rather than put it off. However, consumer groups fear that the campaign is in vain because the elderly customers, which may have no TVs and are not fond of technology, can be left out by the £42.2m advertising campaign.

According to the Financial Ombudsman, it received 80,234 new complaints between April and June, but reports fewer payment protection insurance claims were upheld. Only 40 per cent were held in favor of customers during this period. PPI still dominates the queues of complaints taking 42,401 of the total complaints processed.

Lloyds, RBS and Barclays Announce Profit Losses Due To Additional PPI Refunds

August 8, 2017
by admin in PPI News

UK’s high-street bank sector allocate larger fiscal reserves for their payment protection insurance refund allocations. According to analysts, the bank industry is still struggling with its past misdeeds. All the banks have allocated hundreds of millions for PPI, which they predict would be their last allocation before the 2019 PPI deadline.

Before this arrives, RBS has added £396m for litigation costs and misconduct charges from the US Federal Housing Finance Agency. The bank’s charges come from its mis-selling of mortgage-backed securities in 2005, which proved to be toxic according to further regulator investigations.

Barclays had set aside £700m for its PPI refund package for the first half of 2017. The bank said its PPI costs, along with other profit losses, were necessary costs for its planned reforms.

Lloyds has allocated almost £1bn to provide for all its troubles. However, the bank is successfully re-integrating itself into the UK private sector.

The UK’s PPI claims crisis, from 2009, had accumulated more than £38bn in the last decade. The FCA had announced an August 29, 2019 deadline for all PPI complaints. According to FCA CEO Andrew Bailey, the deadline will urge consumers to make a claim instead of putting it off.

UK’s Banks Need PPI Complaints To Stop To Improve

August 4, 2017
by admin in PPI News

The PPI crisis takes a hefty toll on the UK banking industry’s profits. Lloyds has accounted for an additional £700m for its refunds. Barclays has followed suit with a £700m allocation. Both banks claim these amounts would suffice until the FCA’s PPI claim deadline on August 29, 2017.

UK’s banks and other financial institutions answer to the Bank of England. Stopping the PPI crisis would help the Bank of England’s efforts to improve the economy and implement its policies better; affiliate banks can provide their services to industry stakeholders. However, the crisis, which banks played a huge role in causing, continues to be disruptive to BoE policies.

The FCA’s PPI deadline would help banks rebuild their capital. Banks can then reach out to bigger clients to provide services, which help enforce the Bank of England’s policies.

The only downside to banks getting their way is the lack of improvement in both attitude and consumer policy. Consumer-troubling incentives for work volume motivated employees to sell the policy to ineligible consumers. The £38bn recompense package of the entire industry is a testament to the possible outcome of the deadline for the quality of service from the banking sector.

Banks Likely To Add £500m Further To Current PPI Bill

July 26, 2017
by admin in PPI News

The UK’s biggest insurance fiasco has yet to see its end until the City watchdog’s appointed deadline; analysts expect banks to add more than £500m to the enormous bill of £30bn for mis-sold payment protection insurance.

Lloyds, the biggest mis-seller of PPI, is likely to announce adding a further £200m to its total PPI bill, which could reach £18bn, more than half of the UK total. Analysts also expect HSBC and RBS to announce top-ups to their respective PPI bills.

Following the Financial Conduct Authority’s PPI claims deadline announcement, consumer claim numbers grew in size. According to the Association of Claims Companies (ACC), banks faced with shocking claims figures have employed rejection and delaying tactics. The ACC said banks who used the excuse of “missing consumer files” against consumers with legitimate complaints increased in number since April.

The City watchdog believes its decision to put in place a PPI deadline by August 29, 2019 is enough time for consumers to make a complaint and receive all their refunds. However, consumer groups find it unfair that the banks’ claims processing procedures are still lacking fluidity and fairness. The FCA responded by announcing the final rules and guidance for banks regarding PPI before the announced deadline.

Three Things To Consider Before Hiring A PPI Claims Management Company

July 17, 2017
by admin in PPI News

A PPI claims company would never force its services on their customers. Force is defined here as unsolicited text messages or calls to action that you receive on your mobile phones encouraging you to make a PPI claim.

Half of the UK’s consumer public is possibly mis-sold a PPI policy worth £2000-3500. However, the exchange of mobile phone number databases between scammers and underperforming PPI claims companies would sometimes include by accident, phone numbers of high school to college students.

When hiring a PPI claims company, never hire those who text you, instead, look for these.

Only Has A Website

Any company would need to advertise itself in some way. It may appear in social media. It could have its own website. The thing is, it only shows you itself and presents itself as a solution. The CMC must not shove its service against you.

Under a Contingency Basis

If they cannot win your case, they cannot get paid. No win no fee claims management companies offer this arrangement if they agree to being fair to their consumers.

Capable Of Finding Forgotten Account Numbers

A data access request is available for anyone. However, for CMCs, this is a part of their service to ensure that they could handle your claim precisely and refund you accurately.

The PPI Mis-Selling Saga So Far: Banks Still Struggling To Repay, Elderly Claimants At Risk

July 12, 2017
by admin in PPI News

Consumer groups have advocated against the Financial Conduct Authority’s implementation of a PPI claims deadline at any time because the City watchdog and the banking industry need to create a system that would inform and make it easier for the elderly and disabled possibly mis-sold PPI to claim their refunds.

Elderly mortgage and personal loan customers are at risk of losing their refunds because of the PPI claims deadline. The FCA’s proposed “consumer communications campaign” only focuses on television and Internet advertisements. Generations above millennials and baby boomers are not too tech-savvy, and CMCs are likely to take up the slack to process elderly customer’s mis-sold PPI refunds.

Almost all UK consumers with mis-sold PPI are likely to find their repayments delayed. According to the Association of Claims Companies, which represent legitimate CMCs, data collected from their managers responsible for consumer PPI claim processing report banks increasing their use of an alibi regarding missing consumer details.

The ACC compared its April 2017 data back to its June 2016 data. The data indicated that almost all banks had never used the alibi until it had a sudden spike on March and April 2017, a few months after the announcement of the FCA’s PPI claims deadline.

ACC CEO Simon Evans said banks are likely unable to pay their consumers at the time to use an alibi extensively. The ACC noted Blackhorse, a motor financing company, for jumping from 0% to 80% from January to April 2017 in using the alibi.

Banks Find Difficulty Repaying All PPI Complaints; Still Number One Customer Issue

July 3, 2017
by admin in PPI News

Data from a claims management company representing body’s investigation shows banks and lenders are still unfair in making their PPI refund decisions despite the announcement of the UK’s PPI deadline. PPI remains one of the most-complained about products in the United Kingdom next to flights.

According to the Alliance of Claims Companies (ACC), UK’s banks and lenders continue to use the alibi of “missing consumer information” from an immense drop in 2016 to a huge increase by April this year.

High-street banks including HSBC rejected only 6% of complaints using this alibi. The figure has increased to 42% for the bank in April this year.

Motor financing firm Blackhorse, which had also mis-sold PPI to its consumers in the past, had used the alibi only from February this year. From August 2016, the firm has never used the excuse for every PPI claim it had received.

According to ACC CEO Simon Evans the figures are indicative that firms are trying to “wriggle out” of ending mis-sold PPI with minimal expenses, refunds rightly deserved by their ripped-off consumers. He said the organisation is not shaming the banking industry for the benefit of their represented, but rather the organisation intends to expose the misgivings of banks despite the upcoming PPI claims deadline in 2019.

According to This Is Money, 262,000 complaints in the online complaints tool Resolver are about payment protection insurance. This is seconded by air flights and packaged bank accounts, which have 211,000 and 155,000 complaints respectively by April.

Banks Struggling To Repay Consumer PPI Refunds According To False Excuses

June 27, 2017
by admin in PPI News

According to the Sunday Post, it has uncovered that banks are finding it difficult to refund every single PPI they mis-sold to consumers. Procuring data from a UK thinktank, they said banks continue to use the “excuse” of “not finding the applicant’s PPI details” when dealing with consumer PPI claims.

The Alliance of Claims Companies shows in its data that lender Blackhorse has increased its use of this excuse by 80% in April compared to the 0% this excuse was used early January.

Other banks have begun to reject consumer complaints for the same excuse past August 2016.

ACC Chief Simon Evans said there is “no doubt this is just the latest delaying tactic the industry has come up with” and that this information indicates the UK’s banks are finding it difficult to repay consumer refunds.

This comes as pessimistic news following the FCA’s positivity that the PPI claims deadline set on August 29, 2019 would work. FCA Chief Andrew Bailey said a deadline would urge consumers to make a claim. This information indicates consumer groups were correct; that banks and lenders have yet to improve their PPI refund investigation and services.

The ACC is a representing body of different UK claims management companies (CMC) all opposed to the PPI claims deadline. Mr Evans said their members do not charge upfront fees and it is not in their “economic interest to submit claims without any chance of succeeding.”

PPI Claims: Three Difficulties You Can Encounter

June 21, 2017
by admin in PPI News

Bank employees indiscriminately mis-sold PPI to ineligible consumers, which is almost half the UK’s consumer population. As the deadline looms closer by 2019, consumers are likely to pile up in the banks’ call centres and the Financial Ombudsman in addressing their complaints. Here are three difficulties they could likely encounter.

Delayed Bank Decisions

Banks could either indiscriminately reject complaints without proper investigation or hold the PPI refund decision further than three months. Banks are disallowed to do either of these, but concerning yourself with bank violations rather than getting your refund can be disheartening.

Returning To File Your Complaint

It takes time to collect all your information, inform your bank about your possible mis-sold PPI and walk your entire claim against your bank. To do this again after an unjust rejection would take time and resources. Do not be discouraged; continue to file your complaints or forward your complaint to the Financial Ombudsman.

Collecting All Your Data

For £10, you could ask banks through a data access request for all your transactions regarding your financing and the insurance products attached to it. This is helpful should it be the case your financial documentation is incorrect or lacking. Claims management companies could also do this on your behalf and your entire claim on a no win no fee basis.

Arnold Schwarzenegger To Be The Face Of The FCA’s PPI Consumer Communications Campaign

June 12, 2017
by admin in PPI News

In conjunction with its controversial PPI claims deadline, the Financial Conduct Authority’s appointed media strategist, M&C Saatchi, would have Arnold Schwarzengger and other Hollywood stars to take up the messenger role to discuss payment protection insurance and thrust the knowledge into television viewers.

According to AOL, Arnold, along with other Hollywood stars, have become “unexpected faces of finance.” It said that George Cole, Iggy Pop, Kerry Katona, Martin Clunes and Stacey Solomon, actors famous during the 90s era of action films, music and other media.

Arnold is said not to take on an active role but rather, do a voiceover of an advertisement. The advertisement is said to help people recall him from Total Recall. The idea was to use the film’s former premise and connect this to customers trying to recall whether or not they were mis-sold payment protection insurance.

In March, the Financial Conduct Authority had announced it would set a PPI claims deadline by 29 August 2019 and would use a consumer communications campaign to help announce to people they are due compensation for a mis-sold insurance policy they cannot use. The UK banking industry had mis-sold the insurance policy deliberately as it pushed employees to mis-sell the insurance for better bonuses and incentives.