PPI Claim Tips: Can Banks Forward PPI As a Loan Condition?

February 15, 2018
by admin in PPI News

Yes. Your financial institution can require a payment protection insurance before your loan application is approved.

However, they cannot make a specific PPI brand the only policy that can grant application approval.

Consumers have a right to choose the insurance policy that will fulfill the lender’s PPI requirement because no single PPI will fit the unique circumstances of a borrower’s life.

Therefore, if you were urged to purchase a specific PPI policy during the time, then you have the right to earn refunds and compensation. However, if your bank required that you get a third-party PPI policy and the latter’s conditions make you an eligible beneficiary, then you do not have a mis-sold PPI.

However, make sure to read the fine print properly. Even with third-party providers, mis-selling can happen especially if consumers fail to read the policy’s conditions. Unfortunately, consumers cannot make a claim in this case because the provider had presented the terms and conditions.

Most bank employees in the years of PPI mis-selling confused customers by presenting the legitimate borrower’s requirement and forwarding a specific-brand policy that acts as a “quick solution” to the consumer’s current dilemma, which urges the latter to make the purchase immediately. This led to the huge number of mis-sold PPI policies in the last decades.

FCA Recorded Over 150,000 PPI Complaints In Last Quarter of 2017

February 9, 2018
by admin in PPI News

During the last three months of 2017, the Financial Ombudsman Service tallied a total of 147,775 PPI complaints. It was 50% lower than 2012’s peak complaint number, but it was a sign that activity will pick up early 2018 with the Financial Conduct Authority’s PPI claims deadline in full implementation.

The FCA had helped raise awareness regarding mis-sold insurance policies through a commercial featuring the animatronic model and voice of Arnold Schwarzenegger urging people to take action.

Meanwhile, the FOS prepares by increasing its workforce and optimizing its procedures to ensure the hundreds of thousands of complaints from last-minute consumer receive address promptly without “bottle-necking” the entire pipeline.

The FCA has also ensured banks will optimize their processes to avoid slowdowns. Until the deadline, banks who do not practice efficient complaint procedures will receive immense penalties from the watchdog.

According to FOS Chief Caroline Wayman, the Ombudsman’s workforce must deal with 3,000-5,000 complaints by 2019. It anticipates the immense number of last-minute claimants during the deadline year.

So far, the PPI scandal has accumulated £40 billion in mis-sold policies with over half the value refunded to consumers. Post-deadline, consumers might find it more difficult to make a PPI complaint against banks and financial institutions.

Preventing Possible PPI-Scale Financial Scandals Can Rise From One-Click Digital Transactions

January 30, 2018
by admin in PPI News

Financial Ombudsman Service (FOS) Chief Executive Caroline Wayman said it is possible one-click loans taken out through smartphone applications and websites is possibly the source of mass-scale mis-selling. It is also possible that consumer data trust breaches can potentially increase through these new services.

Ms Wayman, speaking in the Parliament’s Treasury Select Committee, said it is “an area to watch.”

On PPI, she said that the FOS is reinforcing all its lines as they anticipate a “finishing rush” among last-minute consumers who wish to make a claim before the PPI claims deadline passes. However, she anticipates that payday loans and one-click financing might succeed PPI complaints given the rising complaints coming from consumers.

With limited options and troublesome jargon in most one-click loan websites, most consumers find the immediate approval of their financing convenient. However, it also deprives some information about consumers, namely about the annual percent rate’s initial value and increase over months.

The payment protection insurance scandal will end on August 29, 2019. However, claim company surveys reveal majority of consumers do not know a deadline exists, which increases the likelihood of a bottleneck by the last few months before the PPI claims deadline.

Unsure About Having a Mis-Sold PPI? Here Are Three Things To Help You Succeed

January 25, 2018
by admin in PPI News

In less than two years, the Financial Conduct Authority will prohibit all attempts to refund payment protection insurance policies. These financial products were mis-sold for three decades by unscrupulous sales personnel looking to increase their quotas and commissions quickly. It is possible that anyone who applied for a loan, mortgage, or credit card, has purchased this insurance policy.

To make sure you get all your refunds, here are three things you need to accomplish.

Data Access Request

If you do not have all your financing’s paperwork, you can ask a data access request from your bank. For a fee of £10, you can see every transaction involving you and the financing. It can also highlight the PPI repayments you’ve made. The total of these, including the 10% recompense value, are your PPI refunds.

Credit Score Check

An alternative to data access request is a credit score check. Credit agencies can retrieve information about all your financial activities, which can include loans that might have a mis-sold PPI. The report will also indicate the payments you have made for the payment protection insurance policy.

Common Mis-Selling Methods

You can indeed claim to be mis-sold PPI. The reports show that you were paying for an insurance policy you were initially ineligible. It also helps to know the mis-selling strategy the representative used to urge you to purchase the insurance policy. Often, sales personnel would tell customers the insurance is a requirement or it boosted the likelihood of application success.

Banks may require customers to have payment protection for their loans, but they are given the freedom to choose which insurance policy is compatible with their lifestyle. Indicating a specific brand is an illegal and unscrupulous sales strategy.

How Do You Know If Your Bank Owes You PPI Refunds?

January 17, 2018
by admin in PPI News

Payment protection insurance has reached £40 billion in 2016. Banks may blame it on administrative costs caused by firms investigating consumer complaints. While the blame certainly rest with the financial sector’s lack of responsibility to inform consumers possibly mis-sold PPI, PPI claims is to end on August 29, 2019.

If you think you might be owed money, then you can do the following to claim receive your refunds.

How Were You Mis-Sold?

Bank employees could have informed you that the insurance policy was a requirement to go with your financing application. Worse, they could have told you the financing helped speed up the approval of your financing. Both cases are grounds for mis-selling because specific insurance policies provided by a single provider do not suit all consumers.

Credit Score

If you inquire about your credit score, your credit reviewer will provide you all the activities involving your financing. This includes the insurance policy payments you might have made. If you believe you weren’t informed you had this particular insurance policy, then you have grounds to make a claim against your bank.

Claims Management Companies

If you lack the time to create your own claim, then you might need the help of claims management companies. They can make a claim on your behalf and an inquiry for free. You only pay them as soon as they provide you your complete refunds.

Legitimate Business Also Mis-Sold Payment Protection Insurance

January 9, 2018
by admin in PPI News

If you are a business owner who had taken out a business financing, you might also be mis-sold payment protection insurance.

According to a report by JMP Partnership, insurance policies designed to repay business loans in the event of a certain number of missed repayments or bankruptcy were mis-sold to many UK business owners.

It said that about 95% of its successful claims against Lloyds Banking Group’s Commercial Overdraft Repayment Insurance (CORI) and Business Loan Repayment Insurance (BLRI) policies have come from many small business owners who had taken a loan or any business-related financing in the last few years.

The mis-selling was presented similar to the manner PPI was presented on personal financing and mortgages. Owners were informed the policies can increase the chance of loan release during the time of application. Some found it within their receipts and believed it to be additional service costs.

In one of its cases, JM Partnership said more than £50,000 was collected for Mr and Mrs C. The business owners had a CORI, BLRI, Accident Protection Insurance, and PBS fee from Lloyds without their approval.

These new revelations can inflate the £40 billion PPI bill and congest the already-overwhelmed PPI claims pipelines. It can also mean more trouble for the average consumer who needs to make a claim for payment protection insurance policies before the August 29, 2019 deadline.

Consumers Only Have MONTHS Left To Claim For PPI. Here’s How To Do Yours Effectively

January 2, 2018
by admin in PPI News

By 2019, consumers will only have a few months to claim their refunds for a mis-sold payment protection insurance policy. According to the Financial Conduct Authority, consumers will have no legal support after the August 29, 2019 deadline. To make sure your mis-sold PPI claims are effective this year, here are three things you can do.

Data Access Request

Consumers cannot directly ask their banks for their entire financing’s history. However, they can ask banks if they wish to pay for it. It costs £10 to process a data access request, but you can use all the information you collect here to substantiate your claim for refunds.

Credit Rating

Check your credit rating and evaluate the factors which have affected your score. You will find all the activities you have undertaken for each financing you have begun and finished. You can then use this information to substantiate your claim effectively.

Claims Management Companies

While the FCA and government warn that claims management companies (CMCs) are a waste of money, they will never waste your time. You can have them work on your claims in the best way: by having it do the entire work for you. They will only take a small amount from your refunds, but they will get the complete amount just for you.

 

PPI Deadline: The UK PPI Saga’s Final Chapter

December 25, 2017
by admin in PPI News

In August 2017, the Financial Conduct Authority earned the ire of consumer groups and the praise of banking institutions after it had announced that August 29, 2019 is the final date to claim for payment protection insurance. Groups and financial observers were quick to point out that the financial industry of the country has yet to improve its services to the benefit of consumers.

However, the FCA said it would strictly implement measures that will ensure banks will implement better claims processes compared to its performance in the last seven years. Complainants had to wait for more than eight weeks to receive word about their complaint’s progress. Cases where legitimate complaints were rejected were also common.

The FCA intends to make a “clean” ending to the PPI scandal as much as possible before the deadline. Several consumer rights groups claim that the deadline is unjust because UK’s customers have the right to file a complaint about any financial product. They added that it is the right of the business proprietor to resolve these issues if sufficient evidence is found.

The FCA is urging all UK consumers possibly mis-sold an insurance policy to make a claim as soon as they can and not “leave it to the last minute” as they expect most Britons would. A Canary Claims survey by the end of 2017 reveals that 80% of their complainants have yet to know there is a PPI deadline. In fact, half of the 20% who have knowledge of a deadline have no idea about the deadlines exact date.

Majority of Britons Have Yet To Realize They Need to Make a PPI Claim

December 21, 2017
by admin in PPI News

About 80% of UK’s consumers have yet to realize that they have a year left to make a successful payment protection insurance complaint. According to Canary Claims’ Director Kamran Mirshari, hundreds of thousands of consumers might fail to make a successful complaint.

The Financial Conduct Authority’s announcement on the deadline for PPI complaints skyrocketed figures on August 29, 2017. The claims slowdown has arrived during the holiday season and will likely proceed beyond the season. The PPI claims deadline is set on August 29, 2019.

PPI is the UK’s biggest financial scandal. Today, a collective £40 billion has been earmarked for consumer refunds and half of the amount has been returned to customers. Each successful PPI complaint has returned over £3,000 plus compensation.

Economists saw the insurance policy’s refunding in 2012 as “helicopter money.” Many speculate that PPI could leave a dent in the UK’s slowly but surely recovering economy. However, some were quick to point out that 2012 had plenty of spending stimulus that encouraged the population to make purchases, such as the record-low interest rates and help-to-buy government support.

Surprising enough, only 16 per cent of Canary Claims’ clients knew the actual date of the PPI claims deadline. It is likely that many UK consumers will lose out plenty despite the FCA’s advertising campaign efforts to endorse the deadline and creating claims.

DIY PPI Claims: Three Reasons Why It Can Be Difficult Without a CMC

December 12, 2017
by admin in PPI News

claims management company typically earns only if they make your complaint successful. You have no responsibilities over their compensation if they cannot perform well on your behalf. Despite such fair service, authorities are advising against using them. It is possible to perform a PPI claim on your own. However, you may face these three difficulties on the way.

Different Rules Per Bank

Every institution has its respective interpretation of the Financial Conduct Authority’s PPI claims guidelines. This means you might find it difficult if you have multiple claims to perform. While you might have sufficient evidence to support your complaint, you may still face bureaucratic obstacles along the way. To save your time, a claims management company can help you process your complaint.

Save Your Time

If you are to make a complaint by yourself, you might be forced to take a leave from your workday. Not only did you lose income for that day, but if you cannot resolve the complaint during the same day, then you will need to take another leave. A CMC can save you the headache of processing your complaints.

The Financial Ombudsman

The Financial Ombudsman Service’s decision is always final. However, it takes a great deal of time to process especially if you lack data to support your claim for refund and compensation. The FOS may also ask more evidence to back up your complaint within a strict deadline. A CMC can handle these for you and save you the hassle of researching for evidence during your free days.