News
Payment protection insurance: How
much money are you entitled to?
Posted by Manchester Evening News Newspaper (MEN) February 9 2012
You may have noticed coverage recently about rising payouts for mis-sold payment protection insurance (PPI). Consumer Protection Services Ltd (CPS), a successful PP claims company in Wilmslow, has processed over18,000 claims over its four years in the PPI claims industry. Available statistics show that in August, CPS clients received PPI refunds of over £1,083,395 and £813,493 in September. This is an extra £3,149 and £2,684 respectively for each client before Christmas. Most PPI refunds take between six to 12 weeks to complete. At a time when the current economic climate is particularly tough, this may prove very welcoming indeed.
PPI: The facts
Ron Amoore, managing director of CPS explains what payment protection insurance is and why you may have a claim.
What is payment protection insurance?
“It’s a form of insurance the banks and credit card companies put in place to cover your monthly payments on loans or credit cards for usually up to a year in case you are made redundant or taken seriously ill from work. “Also known as accident sickness and unemployment cover, card protection insurance, mortgage payment protection insurance and personal loan protection, these policies are sold alongside your credit card, personal loan or mortgage. The problem is they add between 15 per cent to 35 per cent to the cost requirement of your loan according to Citizens Advice Bureau research. “We find the average PPI charge costs our clients an additional 25 per cent to 40 per cent on top of their loan amount. Understandably, when we point this out to our clients and that they were also paying interest on that PPI premium, they are shocked.”
How have the banks reacted to the number of complaints they’ve received about PPI?
“It’s estimated that the banks have set aside nearly £9bn to pay back on these mis-sold PPI policies after the recent court ruling upheld the original judgment forcing the banks and credit card companies to make good and pay back all mis-sold policies in the UK. “Most of these policies are littered with clauses that make it difficult to get paid out on a claim if you had one. Preexisting medical conditions, self-employment, temporary work contracts, voluntary lay off arrangements are just some of the loopholes often in the fine print that can lead to a PPI policy not paying out on your claim. “For these reasons among others the Financial Services Authority (FSA) has fined many of the high profile banks and lending institutions because they broke the principles of fair conduct in selling these PPI policies.”
Will claiming back PPI negatively affect your relationship with the bank?
“No, it is your right to have it removed and refunded. The bank will simply rewrite your loan and remove the PPI from your continuing policy, which will usually also lower your monthly payments.”
How can I claim my money back?
“You can either contact your lender or credit card company and follow their procedures to file a claim, or you can use the services of a claims management company like ourselves. CPS has specialized in PPI claims since 2008 and has helped over 12,000 clients with their PPI claims. “As an accredited PPI claims company, we’re able to take the hassle out of the equation. We speak with the lenders and complaints departments on your behalf, and we write up your claim based on the FSA principles that the lender has broken, as well as the specifics of your case. “Look out for companies that charge a deposit up front. At Consumer Protection Services we conduct all our work on a no deposit, no win, no fee basis so you don’t pay us a penny unless we get you your refund.” If you have PPI through a loan or credit card taken out in the past 10 years with Lloyds HSBC Halifax, Bank of Scotland, RBS, Barclays, MBNA, Barclaycard, Egg or any other high-street lenders, or credit card companies, CPS can help. Even if the loan is completed or the credit card paid off or closed. It takes about five minutes over the phone to qualify and CPS will send you a claim form.
Favouring the Consumer – Banks are at a Loss.
November 22 2011 Cedric, Claims Dept, Consumer Protection Services Ltd.
Barclays, Lloyds and Santander having been the three most complained about banks in Britain for the first half of 2011; and the majority of these complaints having cited PPI as the source of objection. It is no wonder that according to new figures released by the Financial Ombudsman Service (FOS), hundreds of thousands of people have won compensation for miss-sold payment protection insurance (PPI).
The insurance, designed to provide cover in case of illness or redundancy, was sold alongside financial products, often without customers' knowledge, and rarely paid out.
The FOS, which rules on complaints about the controversial insurance that have been rejected by the banks, has seen the number of cases it has become involved with climb to more than 3,000 in the last two months. Banks for the first six months of the year alone paying out £557m.
Lloyds, the biggest seller of PPI following its takeover of HBOS, setting aside £3.2bn to cover claims in May; while Barclays set aside £1bn and HSBC made provisions for £270m. The banks face bills of more than £5bn to compensate customers and cover the administration costs involved.
Complaints between January – June: Released by the Financial Services Authority (FSA) |
|
Barclays |
251,563 |
Lloyds TSB |
181,907 |
Santander |
168,888 |
Natwest |
147,109 |
Bank Of Scotland |
130,469 |
HSBC |
98,150 |
The increased number of claims often presented on behalf of a client by a Claims Management Company has caused banks to stupor, under pressure (see above figures) both literally and financially. High street banks are expected to hire up to 6,000 workers to handle the increased number of PPI complaints. The number of complains has risen so high that even the FOS may have to take on more staff.
The rising payouts for miss-sold payment protection insurance could prove a boon for not just consumers; but for the economy as a whole, by boosting consumer spending. Most PPI refunds take between 6 to 12 weeks to complete. At a time when the current economic climate may be biting at the heels of those, who are feeling through their purses and wallets for more dough, this may prove welcoming. Consumer Protection Services Ltd (CPS), has processed over 15,000 claims over its 4 years in the PPI Claims industry. Available statistics show that in August, CPS clients received ppi refunds of over £1,083,395 and £813,493 in September. This is an extra £3149 and £2684 respectively for each client before Christmas!
So, whether banks are having a headache or not; it is up to the consumer to claim back what was rightfully miss-sold and receive some much needed cash back in their pockets. If you are interested in finding out more about making a claim please call 01625 536777 10am to 8.30pm for help.
Have You Taken Out a Loan with PPI Before These Dates?
The following banks stopped selling PPI to their clients in these years:
- HSBC: 2007
- Royal Bank of Scotland: 2008
- Barclays: 2009
- Lloyds: 2010
In order to make a claim with these lenders you must of been sold PPI in or before these years.
We can claim back upto 10 years in the past for all loans and credit cards with PPI. This includes loans and credit cards that are both old and new.
June 16 2011
FSA grants HSBC extension for PPI complaints
The Financial Services Authority (FSA) has granted HSBC a temporary extension to complete processing payment protection insurance complaints.
The FSA has suspended its normal eight week PPI complaints deadline for HSBC along with Royal Bank of Scotland, Barclays and Lloyds Banking Group. HSBC has until the end of August to settle PPI complaints that were placed on hold during the British Bankers’ Association’s judicial review action against the FSA over its complaints handling rules.
The banks will have 16 weeks to process those complaints received after the conclusion of the judicial review but before 31 August. For claims made between 1 September and 31 December 2011, the banks must respond within 12 weeks, according to the FSA.
‘We want to see all PPI claims for compensation dealt with swiftly and appropriately,' said Margaret Cole, FSA interim managing director of the conduct business unit.
To view the rest of this article click here.
June 16 2011
HSBC given extra time to deal with PPI complaints
HSBC has been given extra time by the Financial Services Authority (FSA) to deal with a backlog of complaints about payment protection insurance policies.
The FSA has granted the bank the same leeway given earlier this week to Lloyds, Barclays and RBS.
Normally they would have to deal with complaints within eight weeks.
Tens of thousands of complaints were put on hold during a recent High Court hearing and now they must be settled by the end of August.
New complaints received since the end of the judicial review on 20 April, but received before 31 August, must be dealt with in 16 weeks.
PPI complaints received after the end of August, but before the end of this year, can be dealt with in 12 weeks.
From then on, the normal eight-week timetable will apply.
To view the rest of this article click here.
May 18 2011
PPI drives rise in financial complaints to ombudsman
The Financial Ombudsman Service (FOS) handled a record 206,000 formal complaints in the last financial year - a rise of 26% from 2009-10.
Just over half them, 51%, were about the mis-selling of payment protection insurance (PPI).
The 105,000 PPI complaints were a record for any type of financial policy in a single year.
The FOS tries to deal with problems that financial businesses have failed to resolve themselves.
Its chief executive, Natalie Ceeney, said the service, which started 10 years ago, had experienced its busiest year to date.
"We have received more calls to our front-line consumer helpline than ever before," she said,
"And even though we have been able to resolve four out of five problems and enquiries at this early stage - by giving general advice and guidance to over 800,000 people on what to do next - we have still had more consumers come to us with formal unresolved disputes than in any previous year."
To view the rest of this article click here.
May 09 2011
Banking industry gives up on PPI mis-selling battle
he banking industry has abandoned a legal fight over the mis-selling of payment protection insurance (PPI).
The British Bankers' Association, which fought the case, said it would not appeal after losing a court challenge against new rules on mis-selling.
Barclays said it had set aside £1bn to pay compensation, and HSBC £269m, while RBS added £850m to the £200m it had already paid or provided for.
Last week, Lloyds Banking Group made a £3.2bn provision for possible claims.
Peter Vicary-Smith of the consumers' association Which? said the banks had now seen sense.
"It was a colossal error of judgment by the BBA to have brought this case in the first place, which has even further diminished the banking industry's reputation in the eyes of consumers," he said.
"PPI was mis-sold and complaints about it mishandled on an industrial scale for well over a decade.
To view the rest of this article click here.
May 05 2011
How the PPI scandal unfolded
Lloyds Banking Group's decision to set aside £3.2bn to compensate customers who were mis-sold payment protection insurance has exposed the full extent of a scandal dating back more than a decade.
The shock provision was announced on Thursday morning, following last month's court ruling that customers could claim compensation on PPI policies dating back many years. This was expected to allow 3 million people to make claims totalling £4.5bn, but it now appears the final bill could be twice as large.
PPI policies have been sold alongside mortgages, loans and credit cards since the 1990s. They were meant to repay people's borrowings if their income fell because they became ill or lost their jobs.
To view the rest of the article click here.
May 05 2011
Lloyds Back In Red Over £3.2bn PPI Fund
Part-nationalised Lloyds Banking Group has fallen back into the red after it set aside £3.2bn to cover payment protection insurance (PPI) mis-selling claims.
The bank, which is 41% owned by the taxpayer, reported a pre-tax loss of £3.47bn in the first three months of the year, compared to a £721m profit last year.
The larger-than-expected hit comes after the High Court last month decided new rules on the mis-selling of PPI could be applied retrospectively.
It means customers such software engineer Sean Scullion are now able to apply for a refund after being sold PPI which they say was not required.
To view the rest of this article click here.
