Three Ways Bank Employees Have Mis- Sold PPI (Recap)

October 12, 2017
by admin in PPI News

The Financial Conduct Authority (FCA) has made it clear that beyond August 29, 2019, no complaint about payment protection insurance will be addressed by the watchdog or any financial institution. The deadline was set in place to encourage consumers to act upon their refunds immediately. If you’re not keen on how your bank employee might have mis-sold your insurance policy, here are a few ways how.

Requirement

Bank employees and even financial advisers may have told you that the insurance policy was a requirement to go with the loan. However, they must tell you that you can opt for other policies, and you can pull away from purchasing the product they present you because you are ineligible for it. Consider a policy you purchased at face value mis-sold.

Added Inconspicuously

Some banks approve loans for junk credit and retired applicants but add an inconspicuous payment protection insurance without informing the customer. If you had found a miscellaneous item in your series of billing statements, you are possibly mis-sold PPI.

It Raised Credit Scores Quickly

Financial insurance products only guarantee payments for a time period in case something happens to the individual. However, every insurance policy has different criteria. Even if an applicant includes it with their financing, it will not increase their credit scores immensely.

Three Ways to Know If You Have a ‘Plevin PPI’ Due for Refund

October 3, 2017
by admin in PPI News

Hundreds of thousands of PPI complaints were reopened after Susan Plevin won her case against Paragon Personal Finance, establishing the clause that all products sold by a financial advisor or bank employee who had received more than half its price is invalid and due for refund. Here are three things to know if you believe you have a “Plevin PPI.”

A Very High Commission

As mentioned earlier, if the bank employee received substantial commission from selling you the insurance policy, you are due a refund from the insurance policy. Make a claim against your bank and have an independent body investigate your complaint to verify whether your insurance seller received a very high amount after selling the insurance to you.

No Double-Dipping

If you had already claimed your PPI refunds successfully, you cannot make another complaint because of Plevin’s clause. It is fair that you had received substantial compensation, and you will not be refunded anything else other than the original price and repayments you had made for the policy.

You Can Still Work With the Financial Ombudsman

The Financial Ombudsman is also informed of these events and will still investigate on behalf of customers free. However, the Ombudsman’s decision is final and if your policy’s circumstances are not compatible with Plevin, it is likely your insurance was mis-sold in another way or not at all.

Arnold is ‘Likeable Enough’ to be Blunt in His PPI Claims Commercial

September 28, 2017
by admin in PPI News

It looks like an acerbic joke. Arnold Schwarzenegger’s young animatronic counterpart bursts out of a stall of apples to tell you that you need to make a claim for a wrongly-sold insurance policy you never meant to purchase. It grabs your attention, it is silly, but you have to admit that it is effective.

Credits: Youtube.com/https://www.youtube.com/watch?v=K4CC18TZxDE

According to M&C Saatchi’s presentation of the idea to the FCA, as per their presentation deck, Arnold is a “doer, not a talker” and if he told you to do something you would. However, unlike other action stars during his time, Arnold is “likeable enough” to get away with his direct-to-the-point script.

There is no denying the Terminator star is familiar to anyone, even to children not born in the 80s. However, the use of Arnold’s animatronic equivalent is hilarious and bizarre, as many consumers have reacted towards the advertising campaign.

Saatchi said the campaign is not about liking the advertisement, but rather, the medium makes a mark and drives home its message that it is time to act upon the consumer’s mis-sold insurance product. According to the creatives group, Arnold’s character will continue to evolve in further commercials concerning reclaiming refunds from banks, and it will be hilarious and still bizarre, probably.

Three Things To Remember Before the PPI Claims Deadline in 2019

September 18, 2017
by admin in PPI News

The FCA made good on their word… for the banks. The bank industry gets relief because after August 29, 2019, the UK watchdog will disallow or invalidate all future complaints for payment protection insurance. Before you dive in, make sure you still remember how to make a proper mis-sold PPI claim to get all your refunds in full.

Data Access Request

All UK consumers can ask for a data access request from banks. The data from a DAR goes beyond six years, which allows even mortgage payers to see whether they were mis-sold the notorious insurance policy. It also helps bypass the need to get all your physical receipts for payment protection insurance.

PPI Claim Form

The Financial Ombudsman Service has a PPI claim form. Users can write down the specifics of the financial product they own, the amount they pay for the insurance policy on a regular basis, and the manner the bank agent had mis-sold the financial product to the customer.

The Financial Ombudsman

In the event the bank’s final evaluation of the insurance policies are ineffective to the consumers point of view, they can challenge the judgement using the Financial Ombudsman Service. The banks will handle all administrative costs of the re-evaluation. Consumers have nothing to lose to have the FOS sort out the ongoing issues

Three Signs a Financial Product is Bound for a Gigantic Scandal Similar to PPI Claims

September 13, 2017
by admin in PPI News

According to FT journalist Paul Lewis, there are tell-tale signs that help consumers and experts spot whether a financial scandal is on the horizon. Lewis points out that banks will always “lead the field” regarding financial products used for profiteering rackets similar to payment protection insurance in the United Kingdom. Citing studies, he unveils the three characteristics of future financial scandals.

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Banks Will Lead

The CCP Research Foundation states that the PPI scandal is the result of banks using concealed tactics to suggest to consumers a product they wish they will not discover as wrongly sold. Banks will never stop using financial products in this manner in the future.

Guaranteed-Return Products

Any financial product or investment option given to consumers is always added with salt by banks. According to Lewis, any product that will suggest a risk-free and guaranteed return should be viewed with extreme scepticism. A 50% return, even if it seems reasonable, is not realistic. A better figure is 6% or even less.

Lack of Research

A shady market is not exactly hidden from the public, but it makes promises that sometimes investors do not understand. Lewis said that in the case of mis-sold PPI, consumers only knew their bank employees had knowledge of PPI and said it gave better chances of earning loan approval. A product or service not thoroughly explained is the biggest sign of an impending financial scandal.

FCA Advertising Campaign for PPI Mis-Selling Begins

September 4, 2017
by admin in PPI News

An animatronic Arnold Schwarzenegger hilariously greeted TV viewers in the last few days in the FCA’s latest advertisement that advertising agency M&C Saatchi had developed specifically for payment protection insurance claims. According to observers, the FCA is hoping to “annoy” consumers into making a complaint or inquiry regarding their insurance policy before August 29, 2019, the appointed PPI claims deadline.

Arnold Schwarenegger’s real voice was used in the advertisement. However, his representation is a funny, sketchy version that pops out of nowhere with a message: “Do it now.”

The message reflects the FCA’s call to all consumers nationwide to process their enquiries at the soonest possible time. The City watchdog believes UK’s consumers do not find it compelling to process their PPI claims because there is no deadline or deterrence for them to do it without trouble.

However, consumer groups rebut the FCA’s statement, stating that consumer morale to make a complaint is low because of the incompetence of the banking industry to make the complaints system integrated and simple.

The City watchdog has called on the financial sector to improve its services for customers complaining about their wrongly-sold financial products. However, the banks have yet to show signs of improvement in the system to have them do the complaints by themselves and not with CMCs.

FCA’s PPI Communications Campaign Begins, Banks Yet To Resolve All Complaints

August 29, 2017
by admin in PPI News

The PPI scandal has reached new heights with a £43 billion price tag from all UK banks that have mis-sold the policy. However, the Financial Conduct Authority had given banks a deadline for all consumer complaints. Sparking outrage from UK’s leading consumer groups, the FCA remains firm that its consumer communications campaign, which begins by August 29, 2017, can disseminate the necessary information to urge all UK consumers to make a claim as soon as possible.

The communications campaign will end exactly on August 29, 2019, the final date for claiming any mis-sold insurance refunds from the UK banking industry. In line with backdoor agreements, banks are to simplify their complaint procedures to the benefit of consumers.

The chances a UK consumer is mis-sold a payment protection insurance policy is high because almost 64 million units were sold from 1990 to 2010. Banks have yet to resolve half of the complaint figure since the insurance mis-selling was discovered in 2009.

UK’s consumer groups also question the effectiveness of the FCA’s consumer communications campaign. Non-tech savvy and television-centric retired customers will need to receive a formal letter regarding the state of their finances affairs instead of a television public service announcement. Most of the FCA’s campaign focuses on TV and online advertisements, which may leave out this age bracket.

The PPI Saga So Far in 2017: Consumer-Centric PPI Claims Process

August 22, 2017
by admin in PPI News

The Financial Conduct Authority tasked all UK banks who had mis-sold PPI to make the procedure to make claims easier and faster. The imposition of a deadline will not be unfair to consumers affected by the unwanted insurance policy. Consumer groups were vocal when the FCA announced the deadline for claims without considering the consequences for consumers.

However, it is likely CMCs are the only ones who will find issues with the deadline. The Financial Ombudsman reports that 40% of consumer complaints were decided against the complainants. The service added that most of the complaints submitted came from claims management companies.

Meanwhile, the FCA will launch its advertising campaign aimed to explain the refund claiming process to consumers. It is likely to be the advertisement reporting Arnold Schwarzenegger reprising his role in the 80s “Total Recall” action movie explaining how to recall having a mis-sold PPI, and how to make a claim.

Lloyds Banking Group shocked its investors after claiming that it had only dealt with less than half of the PPI complaints it faces. However, with the deadline in place, Lloyds will enable itself to bypass millions of customers who were mis-sold policies by their employees. After the set PPI claim deadline, no consumer can forward a claim once again.

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.