Browsing All Posts By Martin Knipe
How to stop the Banks from mis-selling
With the PPI (Payment Protection Insurance) scandal and various other scandals that have rocked the banking industry over the last 20 years or so, how are the regulators, the government and financial institutions going to resolve the issue of mis-selling or this behaviour (as in the case of interest rate swaps, which is frankly criminal). How are they going to address this? How are they going to stop this? How is their culture going to change in the future to protect consumers? How are the regulators, the Financial Conduct Authority (FCA) and the Financial Ombudsman going to deal with the organisations and disputes that may arise?
Do we have tough regulators?
The big problem with any regulation is a double-edged sword for the government that is in power at the time. The Financial Conduct Authority (FCA) is separate from the government but the head of the FCA is appointed by the government.
Therefore, if the head of the FCA is tough and the lobbyist from the banks and financial institutions do not like it, they can put pressure on the government and, guess what – the Government can change that regulator. This was the case with the FCA a few years ago when George Osborne removed Mr Wheatly, because he was known to be hard on the banks in wanting to drive them to be more consumer driven and protect its consumers. Banks and financial institutions did not like this and did not believe that it made them competitive in the World stage, so they got rid of him!
Are the regulators independent?
We are seeing with the FCA the same as we are seeing with the Bank of England, which again should be independent of the government, but the government still has influence over what they do and how they do it.
We can see this with the talk concerning Brexit in 2016, when the then chancellor, George Osborne, stated the catastrophic consequences of a vote to leave Europe. This was backed by the governor of the Bank of England, Mr Carney. After the vote, hey presto, what do we see happens? All the different bodies around the World have increased their productivity that is due for the UK, so therefore, there were no house price stunts, there were no catastrophic disasters. Both were therefore incorrect.
We can understand why George Osborne was incorrect and give us misinformation because, quite frankly, he is a politician and that is his job. Obviously, it is embarrassing (bearing in mind he was the chancellor of the exchequer and should know his “A” from his elbow) but he obviously soon left and is now furthering his nest quite nicely without the MP salary that he used to know and love. However, what about the governor of the Bank of England? How could he get it so wrong? He is an incredibly intelligent man and is very well respected around the World, yet he was wrong. When people are wrong, it is usually for a couple of reasons: –
- They have got their figures incorrect, in which case there are levels of incompetence. Bearing in mind the damning comments with regard to Brexit, it must be construed that if those figures were believed by him, then he was incompetent or;
- On the flip side, he was pressurised. In which case, there is some sort of dodgy under-the-table agreement as to why the Bank of England governor would come out and say Brexit was a bad idea and for whatever reason would justify this.
The consequences are that it has not transpired and therefore it has shown that the Bank of England is far from independent and that there is still a tremendous amount of governmental control.
Is the financial system corrupt?
Many of us will have seen the film “The Wolf of Wall Street” and seen the various scandals portrayed in the movie business in the “Wall Street” films as well as the other films made following the banking crisis in 2007 and 2008. This is however just the movies, this is not real life. Surely the banking system is not as corrupt as movies portrayal of it and surely the mistakes of the past will be heeded.
Quite frankly, I do not believe that is the case and I think the banking system is inherently corrupt. I do not think that the people at the top were making these decisions and judgments (which are now being questioned as to whether they are criminal or not). They are not as you would call it true criminals, in that they do not have their swag bag and drills going into people’s cash boxes and raiding them, but the criminal today is more likely dressed in a pinstripe suit.
They are making judgments that are impersonal and they do it for profit, whilst not really understanding or in fact caring about whether it has any financial consequences to people as individuals. The global economic system is all interlaced. Fluctuations and interest rates can have a huge effect on millions and millions of people around the globe, but they can also, even with minute adjustments, have a huge impact on the profitability of some firms and how they conduct business, particularly when they are conducting trillions of pounds of business every day.
We see this from the government being called into question regarding the libel rate scandal that is hitting Barclays which no doubt was also relevant with the other banks and other major institutions.
The way forward
I have always thought that the banking industry and the way that it operates is corrupt.
It is charging premiums to clients at a rate they can get away with to make profit for themselves. Therefore, there has got to be a question mark on how beneficial and how useful they are to clients, especially when clients need them as a necessity. How can you trust the banks and financial institutions? Unfortunately, all the products that are offered by the banks and financial institutions are ones that we all need, such as mortgages, car finance, pensions, life cover and so on.
So how can you find out if what you are being sold and promoted is right for you? You are not experienced in the financial world. You do not know if it is going to work or not. So, if you do not know; how do you know that the advice you are taking is correct or not? The honest answer is that you do not and you do not know for a number of years, which is the big problem with financial scandals.
Somebody can be doing something today in 2017 that is not picked for 5, 10 or even 15 years’ time and that particular product that you are hoping is going to be achieve something then does not and leaves you in a financial predicament.
I think there is going to be a problem with pensions in the future, as well as interest only mortgages (lifetime mortgages) all of which are now being packaged in such a way as to benefit financial institutions and allow them to keep the money flow going for themselves. But at what consequence to the client?
It is therefore essential that you follow several simple rules to try to protect yourself as much as possible: –
- Do not get information from a cold-call.
- Do not sign anything at a first meeting.
- Check who is giving the advice. You have the internet and you have google.
- Make sure the advice sounds good (and not brilliant).
- Regularly check everything that you have.
Problems financially in the future and not now – just be wary!
With any financial product that you take, such as a mortgage, pension or similar, problems that occur now will not be picked up for years to come. People who have taken out interest-only mortgages in 2004 and 2005 have been very fortunate with the interest rates being so low, but if they have not dealt with those interest-only facilities in the last 10 years, and interest rates do go up, they will not be able to afford them. This is because firms are not doing interest-only facilities now as the regulators are getting rid of them. Therefore, the consumer cannot afford them and, guess what – they lose their house!
Pensions are another problem. I think it is good that the government has given flexibility and control of consumers’ pensions back to the consumer, rather than relying on some suited and booted guy up in the city basically weeing away your money against a wall. Now the responsibility is down to you, however, whilst there is no problem going out and taking whatever money you get from your pension (if you decide to take out a quarter of it at age 55) you can do what you like with it, but with this flexibility comes scandals. People will want to take hold of that money and promise you the earth with it. They will want to take the rest of the 75% of the fund and say they can invest it in all these lovely different ways to make you lots more money. If this sounds too good – then guess what – why would they get you to do it and why would they not do it themselves? It is not for the consumer’s benefit, it is for their own and they are not making the money so do not put it in there because guess what – you will not be either!
It is essential for people in this day and age to be more savvy with their finances and to have a list of everything they have from life cover through to pensions through to mortgages. They do not necessarily have to change them every time something slightly bad happens with them (because ultimately with any form of investment or product that is spaced over a number of years, there can be slight peaks and troughs) but finances should be inherently conservative. If someone is telling you that you are going to make 40% then guess what – they are lying to you. The consumers must do one thing and one thing only – just be wary of everything out there.
READ MORE +
Are the FCA correct in imposing a time limit at the end of August 2019?
In Spring 2017, the Financial Conduct Authority (FCA) announced (after a review of what seemed like years) that they were imposing a time limit to bring to a conclusion the Payment Protection Insurance (PPI) claims. This time limit is scheduled for the end of August 2019.
Who are the FCA?
The FCA are the regulatory body that oversees the vast majority of banks, lending institutions and financial advisers. They are independent from the government and therefore should be independent from any views and pressures that the government may well impose as a result of lobbying from certain institutions to assist in the running of their business and by reducing the capacity of the FCA to regulate them in whatever shape or form.
Several years ago the head of the FCA took a strict line against the banks and brought in tough regulation. However, we have seen (as a result of the government’s interference, namely George Osborne) that this has been weakened and the banks have finally been able to put their influence in place to bring about a conclusion of the PPI scandal.
The banks and other lending institutions that mis-sold PPI have been lobbying hard both at government level and through the FCA in order to bring about a conclusion to the PPI scandal. It came as a huge surprise to many people that 80% of PPI policies have yet to be claimed and therefore, it is not surprising that the banks want to draw a line under this because, just working from the figures that we do know, that would mean the banks’ potential liabilities are around £120billion if all of these people came forward.
The banks wanted to conclude the PPI scandal early but the FCA has held out a little bit. Rather than the 2018 deadline that was originally proposed, it has now moved the deadline to the end of August 2019. The banks use a huge amount of pressure at government level and, in particular with the Chancellor George Osborne, who unsurprisingly has gone on to become a spokesman for financial institutions around the World which has helped them stop the haemorrhaging that they have suffered from the PPI scandal.
The consumers are the other side of this argument. When consumers were taking out PPI (whether they knew about it or not) they did not realise that the policy itself was a complete waste of time.
It was extremely expensive and inappropriate in so many different cases. The PPI itself was applied to loans, credit cards, mortgages and so on in an ad-hoc way and this was mis-sold in a variety of ways, from just being put onto the facility without the consumer’s knowledge through to being put on the facility with the consumer being given no option but to take it if they wanted the finance.
The best way that the banks could have dealt with this was to write to all its consumers with PPI policies and ask them to complete paperwork to see if a complaint and mis-sale was appropriate. Each individual policy would have been addressed and looked at and, whilst this may have taken some time, that would have been the only fair way.
However, the banks have not needed to do that and the consumers themselves have been left in a position where they (or 80% of them) are now potentially going to miss out on a refund of PPI which could have been mis-sold to them in the past.
PPI mis-sale: The facts
- 80% of PPI purchased has remained unclaimed.
- You can look at PPI policies which are over 6 years old.
- You can look to see if you have had PPI, regardless of whether you have any paperwork.
- You can see if you have had PPI even without an account number.
- You do not need to know whether you have had PPI in the past. It can be checked for free.
Is that it for PPI?
The regulator will be putting into place the time limit in August 2019 where new claims cannot be taken on in relation to the mis-sale of PPI.
Is this going to be the end of PPI?
The honest answer is no, because of course those claims which were submitted prior to August 2019 are going to take up to around 2 years to deal with so this is likely to run into the years 2020/2021 and possibly further.
In addition, there is a question mark over the validity of the time limit being put in place. Is it right or correct? Can it be challenged?
Not only that, the application for PPI can be looked at as potentially fraudulent, in that the banks and members of staff have knowingly mislead consumers to take a policy for their financial gain or the financial gain of the organisation that they work for. Basically, if you look at it from this perspective, it is potentially fraudulent.
The FCA does make mention of this in their report in imposing a time limit. Therefore, there is a question mark (and one that we are keen to explore at a later date) that we could look at PPI but on the basis of a fraudulent payment being taken from a consumers account and not necessarily as a mis-sale. However, this remains to be seen.
Don’t delay – get your PPI claim in
The most important thing is that if you have had any form of borrowing in the past, whether you have paperwork or not, whether you know the account number or not or whether you whether PPI was applied or not, regardless of how long ago – you must put a claim in to see if PPI was applied in the first place and then, if PPI was found and applied, look at obtaining a refund by way of mis-sale. All of this we can do on a no win no fee basis.
READ MORE +
What is so wrong with Packaged Bank Account facilities?
Packaged bank account (PBA) facilities can be useful. They can provide cover when abroad and provide cheap tickets to certain events or even a reduction in interest rates for facilities that the Bank may provide (such as loans, overdraft facilities and so on).
However, rather than promote this product to those who will benefit or who actually want the facility package, the Banks have yet again sold it on a wholesale basis and provided it to consumers who will not benefit and who ultimately find it to be a financial burden. We have seen this from the Banks time and time again.
It is therefore important that the issue is addressed. If you do have a packaged bank account facility and you are unhappy with it in whatever shape or form (whether you are unhappy with the money or did not know what it was all about) then we can look at this on your behalf addressing the premiums and any potential refund – all on a no win no fee basis.
When are Packaged Bank Accounts good?
Packaged bank account facilities can be useful when they are sold in the correct manner. If they have not been sold in the correct manner or promoted in a certain way then they can be expensive and a financial burden upon its customers.
How do I know if my Packaged Bank Account is not right for me?
If you did not know anything about the packaged bank account facility then it will come as quite a surprise to you that you have this facility and that you are paying for it. You may not have realised it was an option or did not know of any of the benefits of the package. If that is the case, there is a good chance that the package was mis-sold to you.
Mis-selling tends to be centred around whether someone knew they had a product and the costs associated with it. If you did not know you had the product or the cost or even what the benefits were, there is a good chance it was flogged to you and the bank employee who did the flogging was looking at ticking a number so that they did not get reprimanded at the end of the week.
READ MORE +
Are packaged bank accounts on a time limit?
With the recent introduction of a time limit concerning the mis-sale of Payment Protection Insurance (PPI), that being the end of August 2019, people are concerned that the same form of time limit will apply to other forms of claims, such as packaged bank accounts.
This is not the case and packaged bank accounts can still be challenged, although there can be time frames as to how far back the account facility can be challenged which depends upon whether you knew the facility was available, or not.
Are packaged bank accounts the same as PPI?
Packaged bank account facilities are completely different to PPI, although they were set up in the same way, namely the banks wanted to make a few extra pounds and pence off their consumers by attaching a product which, if it was sold incorrectly, was completely worthless and costly to the consumer involved.
Packaged bank account facilities included, as they say, a package of facilities for a particular account. Normally you are charged around £15 to £20 per month and the cover includes travel insurance, breakdown cover, some sort of cheap ticket deals that you could get if you were that way inclined, cheaper admissions for National Trust venues and so on. for a number, they do not and have provided no help or benefit to the consumer and have been costly.
What are packaged bank accounts?
Packaged bank accounts are another way that the banks can use to raise money from clients who ultimately do not have a huge level of requirement of the bank. It can generate considerable profits for the bank by paying a premium each month to cover a variety of different areas ranging from travel insurance to breakdown cover.
Packaged bank account facilities have always been sold as an upgraded version of a current account making the alleged beneficiary feel that much better about themselves, but ultimately if the product itself was of no use or benefit to the client, then it can be costly.
Many people were not given the option in taking the facility in the first place, which denotes a mis-sale and, as such, the Financial Conduct Authority (FCA) investigated the banks and found severe weaknesses. That is where a mis-sale takes place.
What is wrong with packaged bank accounts?
Ultimately, there is not anything wrong with packaged bank account facilities. They can be extremely useful. However, this is as long as you know that the cover is in place and what parts of the cover you can or cannot use, including all limitations to the cover.
The problem with the packaged bank account is not the account itself, it is the person who is recommending or selling it.
If it is not established that the account itself is worthwhile and useful and will provide benefits and savings to you as a consumer of the bank then it is no good and it will therefore have been mis-sold.
As a result, if this was mis-sold then we can look at recovering the premiums back for you.
What could I get back if I challenged my packaged bank account?
If you challenge the packaged bank account, and we can establish that it was mis-sold, then we would look at obtaining a refund in relation to the account fees that were charged, along with interest and any other fees that were attributed to the account as a result of the account facility fees being taken out in the first place.
Depending upon the length of time that the account has been in operation, a number of refunds will range between £1,500 and £2,000 (including the interest). Some can of course be less and on some occasions we have seen quite considerable refunds over £3,500.
READ MORE +
Have I got PPI on my old credit card?
Credit cards were the mainstay of people’s finances in the late 1980s and early 2000s. If you had a credit card facility, as most people did (such as the Associates or Barclay card or similar) then these do need to be checked. Lenders have swapped over, moved and changed to do everything that they can to avoid being looked at. However, we are happy to look at any facility, regardless of whether you know if Payment Protection Insurance (PPI) was applied or whether you have any paperwork or account numbers attached. Therefore, so long as you know that you had a facility with a certain lender or have a card name, then we can check on your behalf to see whether PPI was applied – all on a no win no fee basis.
Old credit card facilities can bring in big refunds!
If PPI was applied onto an old credit card facility, it can generate quite a considerable refund in that any refund must take into account the prevailing rate of interest at the time. As it was a credit card, it is therefore high and as it was a long time ago it adds up and compounds year after year. If you have had any credit cards in the past, it is essential to check these.
Do I need the details of old credit cards to make a claim?
If there is no information regarding your credit card, i.e. a number, a statement or any paperwork – that does not make any difference to us. We can still check on your behalf. All we need to know is the name of the lender and we can go from there.
Surely, I would have known if I had PPI on my old credit card?
There is a good chance that you would have known that you had PPI on your credit card. However, as this is something that happened twenty years or so ago, are you absolutely sure? Are you absolutely sure that it is not the fact that people are talking about PPI that makes you certain that you did not have PPI or is it the fact that you are convincing yourself that you would not have been mis-sold and you are far too intelligent to have ever been stung by this con?
Sadly, most people were stung by this con because at the time people did not realise it was one. With 80% of policies not being assessed for mis-sale so far, you can imagine how many people out there will miss out on potential claims in relation to PPI and you do not want this to happen just by the belief that you could not have been mis-sold it in the first place.
How do I know if I had PPI?
Payment Protection Insurance (PPI) is a product that cost a huge amount of money that affected millions of people, but until the discovery of the mis-selling no-one knew anything about it. So, how can you as an individual know whether you had or have PPI or not?
Around 80% of policies have not been checked and, bearing in mind all the Press and huge numbers of claims – there is an incredible number of people that have not checked whether PPI was applied or not.
Things you should do regarding PPI
- Have you made a claim in the past? If not – you must check.
- Have you had any credit cards or loans in the past but do not have any details? If you did – you must check.
- Did you have any loans or credit cards with no paperwork or any other details in the past? If you did – you must check.
- Did you have any loans or credit cards but believe that you did not get mis-sold any PPI? If you believe this – you must check.
- Did you have any form of borrowing in the 1980s, 1990s and 2000s? If you did – you must check.
The vast majority of people had borrowing facilities in the 1990s and early 2000s and most of these facilities will have been covered by PPI, whether the consumer knew about it or not.
Unfortunately, with the passage of time and the destruction of records and information, along with the fact that many people wanted to deny they were ever mis-sold PPI, means that 80% of PPI policies have not been looked at with regard to their mis-sale and many people are therefore missing out on potentially thousands of pounds’ worth of refunds.
READ MORE +
What is the PPI time limit?
A Payment Protection Insurance (PPI) time limit has been put in place by the Financial Conduct Authority (FCA). All PPI claims will continue to be allowed up to the end of August 2019. If you need to make a PPI claim, then it is important that you do this and before the time limit date set.
Why is the FCA setting an end date?
The FCA is setting an end date to basically protect the Banks by stopping any further PPI claims and mounting uncertainty with the Banks from the wholesale mis-selling of PPI that they got up to in the late 1980s, 1990s and early 2000s. Many people believe that the time limit is an appalling abuse of power and that it is inappropriate. It is believed that further stringent measures should be taken to protect customers from the mis-selling that took place over the last three decades.
However, these arguments are going unheeded so far and therefore, there is now no excuse not to make a claim, regardless of whether you know if you had PPI applied to any facilities (old or new) in the past.
What do you need to do?
You should ask yourself the following questions: –
- Have you claimed back PPI before?
- Do you, or did you have an old credit card or loan?
- Has the credit card or loan facility finished?
- Do you think you ever had PPI applied to a facility?
- Do you ever think you did not have PPI applied to a facility?
It is important that if you have not already made a claim in relation to mis-sold PPI that you ask yourself these questions and check whether PPI was applied to any facilities you had in the past, whether they are open or closed, old or new.
It will be no good if at the end of 2019 you start thinking you had better check an old credit card facility that you had in the late 1990s because by that time – it will be too late!
It is important that you check now to avoid disappointment and to avoid the rush.
What is PPI
PPI is a form of insurance that was applied to credit cards, loans and other facilities, which was mis-sold by the major lenders over the last three decades. It was sold on the belief that the loan facility would be protected.
The lenders did not tell customers however, just how difficult it was to make any claim upon the PPI and, in most circumstances, only around 10% of the people claiming were able to make successful claims. They also did not adequately inform customers of the limitations of any potential claims or indeed how much the PPI itself cost.
PPI itself was very costly and, in many cases, represented between one quarter to one-fifth of the overall borrowing facility. In addition, the added interest that you had to pay on your premium made PPI extremely expensive.
Why is there an urgency to look at PPI?
There is an urgency to look at PPI now because a deadline has now been put in place, albeit at the time of writing this it will be just over 2 years’ time. There will however come a point when a mass frenzy will want to look into PPI prior to that date. Therefore, if you have not already checked to see if you have ever had PPI (and it is a free check that we can undertake on your behalf) then there is no excuse not to start your search/claim as soon as possible.
Why is it important to check if you had PPI?
The FCA considered when deciding a time limit also announced that 80% of PPI policies that have been taken have not been assessed for mis-selling. Therefore, all these huge losses and the numbers the Banks are posting is only in relation to 20% of these policies actually having been looked into!
Therefore, if you have not checked if you have had PPI, how can you know that some was not applied without your knowledge? This has happened on many occasions, so therefore, if you did have any borrowing in the late 1980s, 1990s or early 2000s (regardless of whether you have any paperwork or knowledge if PPI was applied, or not) then we can check on your behalf to see whether PPI was applied. If it was, we can then approach the lender with regard to looking at the sales process that took place when selling the product to you.
READ MORE +
How much PPI can I claim?
How much Payment Protection Insurance (PPI) can I claim? The simple answer is – all of it!
If you have been charged PPI, the bank has to justify why this PPI was sold to you and that it was not mis-sold.
Why haven’t you claimed PPI before?
Everybody has seen the adverts, had the text messages and received those annoying phone calls. Therefore, why is it that 80% of policies have not yet been claimed against? These are not figures pulled out of the air, they are in fact figures that have been pulled out by the Financial Conduct Authority (FCA) within their report to justify a time limit on PPI claims to protect the banks.
This means that 80% of all policies (that is between 40 – 45 million policies, if not more) have not yet had a claim made against them, with only 20% of policies having had claims made against them.
Therefore, if you had had PPI in the past (which was attached to lending) then make a claim now.
80% of PPI policies have not been claimed!
This is a frightening statistic and, even after reading the FCA report a couple of times (because you have to re-read figures like that just in case you read them wrong), it is truly amazing that with all the advertising that has gone on and with word of mouth about PPI, that there are still around 80% of all policies that remain untouched.
If you have had borrowing in the past and have not picked up the phone to establish if you have had PPI (whether it is you, yourself or through a firm, like us where we have been working for clients for almost 20 years) then you must do so because it is more likely that you are one of those 80% policies and, if you are, there is money there for you to get back if the policy was mis-sold to you.
What if you have no paperwork to show you had PPI?
If, like the majority of people, you do not have any paperwork showing that PPI was attached to any of your facilities in the past, then you may feel reluctant to move forward with any requests or claims as you likely cannot remember if PPI was applied, or you are sure you would not have signed up for something like that because every time you were asked, you said no.
However, are you absolutely sure PPI was not attached?
Are you absolutely sure that they lender/bank not apply it on your facility without your knowledge?
If you had any borrowing at all in the past, you must establish if you had PPI attached to it. The banks are likely to make this very difficult, which is why we are here to help people and we do this all on a no win no fee basis, with a free review to see if PPI was applied to your facility, or not.
What if you do not know whether you had PPI?
I would imagine that the remaining 40 – 45 million PPI policies that have not had a claim against them in relation to the mis-sale of PPI is because people do not know they ever had PPI applied. These policies were attached and, either through the passage of time where people have forgotten they were attached, or through the passage of time people have justified to themselves that they clearly would not have signed up to something like that. Whether you know if you had PPI, or not makes no difference.
The important thing to remember is – did you have any form of borrowing with any of the lenders in relation to credit cards, loans, mortgages? If the answer to this is yes, then you could have had PPI applied, whether you knew it or not and regardless of whether you had any paperwork, or not.
If you did have any of these borrowing facilities, it is essential that you now look now to see if PPI was applied.
READ MORE +
When there is a time limit in August 2019 – will this be the end of PPI?
As the time limit suggests, it will invariably mean that anybody making a Payment Protection Insurance (PPI) claim after August 2019 would in fact fail.
Any claim that was in place up to August 2019 will still be in place and, whether it is settled by 2020 or 2021, it does not make any difference as it will be progressed to a conclusion.
It is therefore essential that you now put in any claims that you have, to establish if PPI was applied.
Why is there a PPI time limit?
PPI has been rumbling on for years now and the banks have always wanted a time limit to stop the money hemorrhaging from their business so that they can get on with making yet more profit out of us poor consumers.
The Financial Conduct Authority (FCA) have caved-in to their suggestions and agreed to go against what is best for the consumer and protect the banks by agreeing to put in place a time limit.
Will I be able to claim PPI after the time limit?
I think you have to work on the assumption that you will not be able to make a PPI claim after August 2019. You will just have to do it as soon as possible to avoid the rush before the deadline. You will firstly need to establish if you have PPI and you have to work on the fact that you will not have any paperwork or have any account details or numbers and you may have to hit your head against a brick wall every now and then as the banks try to deflect your enquiries.
We work on behalf of many clients and take on the mantle of hitting our heads against the brick wall for you, as we deal with banks on behalf of our clients. We are very happy to do and we have been doing so since we set up in 1999 in dealing with all banking disputes and complaints on behalf of our clients.
How can there be any more PPI to claim?
It does seem like complete madness, especially with all the criticisms of the claims management companies and poor Press, that everyone must think that all PPI has been claimed. How can there be any more out there to be claimed?
The recent report from the Financial Conduct Authority (FCA) where the time limit in relation to PPI was announced did highlight one of the most shocking statistics, and that is that out of the 65-70 million PPI policies that have been sold by the various lenders, only 13 million have been claimed against!
This means only 20% of PPI policies have had a claim in relation to mis-sale. It is a frightening figure when you think about how much the banks have had to refund and of course, why they have been so keen to stop PPI being claimed in the future.
It is also a frightening statistic when you consider the FCA is there to protect you, as the consumer, but they want to put in place a time limit to stop people, albeit the 80% of people, making a claim.
How do I know if I had PPI?
It is straightforward to establish if you have had PPI, or not.
Firstly, you need to make a list of all the lenders that you have had in the past.
Then, you should look to make an enquiry to the lender/bank as to whether you had PPI applied. This second part is usually more difficult as the lenders are obviously not going to want to tell you whether you had PPI straightaway, and it does tend to take a bit of time and tenacity to establish if you can whether PPI was applied.
We work on behalf of clients and establish this for them and, in some cases, we have sought claims from as far back as the late 1980s and early 1990s. There are never any guarantees of success in these cases and that is why we work on a purely no win no fee basis.
It is essential that if you have had borrowing in the past, that you now establish if PPI was applied to any of that borrowing.
READ MORE +
No phone call required to make your free PPI check
You do not have to fill out enormous forms or provide volumes of justification to establish if Payment Protection Insurance (PPI) was applied, or not.
With the passage of time, any PPI that was sold in the late 1980s or 1990s can take some time to establish, which is the reason why we work on behalf of clients in order to do so and on a no win no fee basis.
Claiming PPI by email and post
When looking at PPI and whether it has been mis-sold, it is important to look at the process involved with the consumer as make it as straightforward as possible. The banks, Press and Financial Conduct Authority would have you believe that it is just as simple as making enquiries of them and they will provide you with the answers.
Bearing in mind the lenders and banks perpetrated the whole mis-sale in the first place, why would they say anything different? Indeed, with the Financial Conduct Authority (FCA) overseeing them mis-selling for so long, why would they also not state that the banks will now do things properly?
Ultimately, the banks are there for one reason – and that is to make money. If they can avoid these claims by deflecting any enquiries, they will of course do so.
Claim PPI in your own time
You can claim PPI back whenever you like. Firstly, you need to establish if you had PPI in the first place and this can be the most tedious aspect because the banks will try to deflect any enquiries to avoid having to establish if any PPI was applied.
It is essential when dealing with any of the lenders that you persist and make sure that they look at any possible old facilities as closely as possible. Do not forget that you, as a client of the lender, are unlikely now to have any of the paperwork to establish if PPI was applied and therefore, you are entirely reliant on organisations providing this information to you.
Initially, they are likely to try to get rid of your enquiry so you must therefore persist. This is why we work on behalf of clients as it can take some time to establish if PPI was applied or not, regardless of whether you have any paperwork, account details or know if PPI was applied in the first place.
What facilities had PPI?
PPI was attached to all forms of borrowing facilities, from loans through to credit cards. Credit cards the one area where people do forget they had it or think they only had a few pounds worth. It is, however, one of the most important facility to establish if you had an old credit card facility.
This is due to the way that refunds are calculated. Any refund in relation to a credit card can reach a significant amount as interest is always applied at the prevailing rate of the card and because interest rates were high on credit cards, refunds tend to be quite high.
In addition to credit cards, PPI can be found on mortgages, store cards, car finance, or any other forms of borrowing.
How far back can I claim PPI?
PPI started in the mid 1980s but really started to kick off in the early 1990s as the banks understood how much money they could make from this particular type of policy. The targets were particularly aggressive within branches and sales were considerable.
You can make a claim back as far as you like, it just depends upon whether the lender can locate the information. It does require a considerable amount of tenacity and having an attitude that you will not be put off, but with persistence, a lot of information can be established – even if the bank or lender in the first instance say they cannot locate your details.
READ MORE +
Get your free PPI check here
Payment Protection Insurance (PPI) claims are coming to an end in August 2019. It is therefore essential that if you have not already checked to see if you have had PPI, that you now do so, rather than wait for the mad rush towards the end of this period.
What is PPI?
PPI is a form of expensive cover that was placed upon a variety of borrowing facilities by the various lenders and of course the High-Street Banks in the 1990s and 2000s. It was an extremely expensive cover that apparently protected you in the case of death, unemployment and sickness.
However, rather unfortunately, whilst the policy was incredibly expensive (making up in some cases a quarter of whatever borrowing you had which it was designed to protect) the lenders also rarely paid out on those policies. Sometimes the policy pay-out rates were as low as just 10%!
Why should you check now to see whether you have had PPI?
There is no particular reason why you should check now, other than the fact that you should actually check. The Financial Conduct Authority (FCA) have decided to impose a deadline with which to make a claim in respect of PPI in August 2019. By that time, any PPI claim should have already been submitted.
Of course, there will be a running over period for probably one, two or even three years after August 2019 as claims are finished off. However, it is essential that you make a claim as soon as possible to establish if you have had PPI in the past and if you did, establish if the policy was mis-sold. If it was, then make a claim against this.
Why is there a time limit on PPI claims?
The simple reason for the PPI claims deadline is that the banks have put a great amount of pressure on the Government to stop paying out all this money in relation to claims against PPI. There has been a lot of bad Press about how people should go about making claims in relation to PPI which has helped the banks and financial institutions avoid paying out the true costs arising from the scandal.
Lenders have avoided questions of whether PPI was fraudulent – which ultimately it was, and they are now avoiding paying out approximately 80% of what they should have done as the figures released by the Financial Conduct Authority (FCA) state that approximately 20% of all PPI policies have now been claimed against. Logically, that means that 80% of claims have not been claimed against which is a ridiculously huge number and shows the wild scale mis-selling that took place by the banks and other lenders.
How many PPI policies are unclaimed?
The report published by the FCA to justify (and if you ever have a couple of hours to read the 180 pages that they have written trying to justify why they should impose a time limit) then it is worthwhile doing so and noting the fact that they have completely glossed over any of the criticisms of the lenders in dealing with the PPI and the justification for any PPI time limit being imposed at all.
The report is, quite frankly, a complete cover-up and a disgusting abuse of power against consumers in protection of the banks by the FCA who did an appalling job in the first place of trying to police them.
Even the FCA upgraded the number of policies that have not yet been claimed and these now stand at approximately 14 million in total, although this could well be higher and spans over the last three decades.
So therefore, why is there a justification for the deadline and why have the banks not simply been told to look at every one of these and contact the clients? The simple reason is that the banks do not want to pay out any more money and the Government has agreed.
READ MORE +