Posts Tagged ‘ppi’
We’ve all heard of PPI by now, and in fact it’s now one of thise things that just won’t go away- just ask anyone who is still plagued by automated phonecalls asking you to submit a claim. However, new proposals from the FCA could see a light at the end of the PPI tunnel, with a proposed new deadline by which to make a claim, or lose the right to do so.
It seems only common sense- after all this has been rumbling on since the substance hit the fan in 2007 and so far 16.5 million claims have been made, of which 75% were successful, meaning that £21bn in redress has been paid to over 12m mis-sold customers. Banks still show contingency funds in their balance sheets in case new claimants come out of the woodwork. Banks have also been asked to identify those at high risk of having been mis-sold PPI and to write to them- with 4.8m out of 5.5m letters having already been sent totry and wheedle out new claims. Surely now enough is enough?
But of course the FCA haven’t just arbitrarily decided to close the floodgates, they have, in fact, been investigating the whole sorry PPI mess, and have published some research alongside this week’s recommendations.
Their evidence suggests that:
“a high and growing proportion of PPI complaints are made through CMCs, with fee costs to the consumers who use them;
a high and growing proportion of PPI complaints relate to older PPI sales, where the documentary evidence held by firms and consumers is likely to have significant gaps, and recollections and oral evidence are becoming increasingly stale and;
a significant proportion of PPI complaints turn out not to have involved a PPI sale”
Which basically means that current claims are either noT claims at all, are founded on patchy information and sketchier memories or are possibly just lining the pocket of those oh-so-annoying claims management companies (CMCs).
The FCA also found that “around three quarters (74%) of the consumers we surveyed have heard of PPI as a product, most of whom (77%) say they are aware of problems or issues with it” which suggests that it is not lack of awareness that is the problem in bringing any outstanding claims. However,they also found that “the perceived open-ended nature of the complaints-led approach to PPI redress appears to contribute to a significant degree of consumer inertia and does not push or incentivise consumers to check if they had PPI”. Or, in other words, people just can’t be bothered to get round to it while there’s no end date in sight.
As a result the FCA are now proposing that a two-year deadline be imposed, meaning that anyone who can’t get their act together in that time loses out. This would be accompanied by a ‘high profile’ consumer communications campaign to not only inform people of the impending deadline but also to hopefully encourage more people to DIY rather than using a slippery company for a hefty fee. The FCA think this would “bring the PPI issue to an orderly conclusion…helping rebuild public trust in the retail financial sector”. Yeah, right.
However, no matter how sensible this all sounds, you can never please everyone, and Which? executive director, Richard Lloyd, was heartbroken, saying that
“it’s hugely disappointing that the regulator is pushing ahead with a blanket PPI time limit. Instead of rewarding the banks that have dragged their heels over paying out compensation, the FCA should be requiring firms to proactively seek out customers owed money. Relying on consumers to complain, when many were unaware they’ve been a victim of mis-selling, has clearly not worked.”
Still, one can only hope that reading about the proposals might even spur people into action even if the deadline doesn’t end up coming into force- in case you are so inspired, Which!! do have a handy tool which will generate a letter for you to sign and send off to the relevant credit provider.
At this stage, the deadline is just a proposal, and the FCA are seeking views on the proposals until February next year- and you can even offer them your response via an online form if you so choose.
This fine comes in a week when the Information Commissioners Office (ICO) are throwing fines at all sorts of spam-pests, totalling £250,000. The £80k was served to Birmingham-based UKMS Money Solutions Ltd, and of course, they were dealing in nuisance PPI messages. The company failed to check that the people they were messaging had agreed to receive marketing text messages.
The ICO are getting in touch with 1,000 of these spam-vendors, to ask them what they’re doing to comply with UK laws. If it turns out they’ve failed to go through proper procedures, there’s going to be more fines doing the rounds.
ICO enforcement manager, Andy Curry, said: “UKMS relied on their data suppliers’ word that the people on the lists had agreed to be contacted. That’s simply not good enough. UKMS should have known that the responsibility to ensure they had the right consent to send messages to people rests with them.”
There’s a lot of calls for tougher action against these sorts of companies, because at the moment, they can dodge penalties by simply closing down their business and then re-opening on the same day under a different business name. It really is a farce. One of the things that is being spoken about, is that, instead of fining companies, you fine directors who are responsible.
The ICO would also like to see an increase in the maximum fine possible. Currently it stands at £500,000, which is clearly not enough of a deterrent.
If you think that you’ve been missold Payment Protection Insurance (PPI) and you’ve been lazy with regards to sorting it out, you’re going to have to get a wriggle on, because the Financial Conduct Authority is thinking about putting a deadline on the whole thing.
Now, you might think it is really difficult to make a claim, but it isn’t. You can do it yourself and should in no way be paying someone to do it for you.
The people who say they’ll do it for you will charge you a big ol’ fee, and they’ll add VAT to it. It really is a racket, but you can do it for yourself.
So, let us give you the low-down on how to sort out this PPI nonsense.
What The Bloody Hell Is PPI Anyway?
Basically, banks offered payment protection insurance, which were designed to protect your loans or credit cards or whatever. However, banks, loan companies and credit card firms missold them for high rates and, in some cases, customers were forced to have them without knowing about it. As a result, the establishments who did this have to pay compensation to those affected.
So, How Do I Find Out If I Was Missold Something?
Okay. If you’re unemployed, self-employed, or retired or even had a medical problem that prevented you from working at the time you took out the policy, you’re good to make a claim. Or, if you were told that the insurance was compulsory before you could be approved for credit, you’re golden. Even if the PPI wasn’t properly explained to you, you could be in with a shout of getting some cash.
When Do I Need To Make A Claim?
Do it now. Stop mucking about and get your claim done. Now the FCA is talking about a time limit on this, you need to pull your finger out. Also, if your policy was taken out longer than 6 years ago, you might have some bother, but that shouldn’t stop you trying.
How Do I Make A Claim Exactly?
Get any paperwork you have. If you don’t have it, never mind, we can still get a claim done – you will need to ask your lender for copies of your paperwork. Thanks to the Consumer Credit Act, you can legally ask your lender to sort you out with copies of paperwork. It’ll cost you a quid to get them though.
If you can’t remember which who you took loans out with, then get in touch with credit report agencies like Experian.
Once you’ve got all your details, you’ll need to write to whoever you have your policy with. If you are not much a letter writer, worry not, as you can use the free templates for letters by clicking here. And if the company has gone belly-up, no matter, you can get in touch with the Financial Services Compensation Scheme people, by ringing 0800 678 1100 or clicking here.
Don’t be thinking you’ll get your money quickly though – there’s a massive backlog on this, but your bank should tell you within 8 weeks of you getting in touch, whether you’re successful with your claim or not. If you’re unsuccessful, but think the bank are having you on, then take your claim to the Financial Ombudsman Service, which is free.
Call them on 0300 123 9123 or go to the FoS site by clicking here. You can write to them too, via snail mail: The Financial Ombudsman Service , South Quay Plaza, 183 Marsh Wall, London, E14 9SR.
Is That It?
Pretty much. Get your bum in gear and make a claim! Good luck!
Lloyds massive fine for the PPI scandal has seen them actually doing something about it. Not only are they compensating all their customers, but they’ve also cut its bonuses by £30m, as well as making sure that their executives forfeit their money they get from their share awards scheme.
The bank will also be reviewing historic cases after the the Financial Conduct Authority pointed out the myriad of failures that need to be fixed.
And so, Lloyds are punishing their staff and admitted that ”part of its complaint handling process led to a failure to provide fair outcomes for a significant number of customers”. They continued: “Although the FCA has not found that the group acted deliberately, the group has reviewed all customer complaints fully defended during the relevant period.”
“Whilst our intentions were right, we made mistakes in our handling of some PPI complaints,” said Antonio Horta-Osorio, the bank’s chief executive. ”I am very sorry for this. We have been working hard with the FCA to ensure all customers receive appropriate redress. That process is now substantially complete. We remain fully committed to improving our operational procedures and ensuring we do the right thing for our customers.”
Next stop – the rest of the bank being sold off by The Treasury.
Lloyds are all set to be hit with a massive, record fine for their role in the PPI scandal. This particular penalty is for mis-handling complaints, and it is thought that this will be somewhere in advance of £100m.
They’ve already coughed-up billions to settle the mis-selling nonsense they got involved in and, worse still, this could all see a load of old cases being reopened.
The Financial Conduct Authority is preparing their fine, and they’re responsible for the previous record fine handed to Clydesdale Bank in April. Lloyds have set aside over £21 billion for PPI-related costs.
How Do I Claim Back PPI?
If you’ve been mis-sold PPI, don’t use a dodgy company to find out about it – you can do it all yourself. First thing you should do, is contact your lender. If you have the original contract or terms, that’ll make it so much easier. However, if you don’t, you can still get in touch as all they should need is your name and address.
Once you start speaking to your lender, you can ask them to send you paperwork, which will make all future correspondence much simpler. Be sure to ask them to ensure that the terms and conditions date back to the time of your agreement, so they don’t try and pull a fast one.
Check your lender’s website – some have a dedicated section for dealing with these claims.
The PPI mis-selling scandal trundles on and, in vaguely good news, complaints about them have halved in a year. However, don’t be fooled, as PPI is still a massive issue, dwarfing most others. Basically, it won’t go away.
The Financial Ombudsman Service, which deals with all the unresolved cases, said that they’d received 204,943 complaints about PPI in the 12 months to the end of March, which is still a shedload. Other complaints about financial products don’t even come close.
The ombudsman reckons that PPI cases could still be dogging everyone for a while yet, and could take years to work through.
So far, over £24bn has been paid out via a gigantic programme of compensation. There’s still a chance that the banks are being idiots about the whole thing, still!
The Financial Ombudsman Service found in consumers’ favour in 55% of cases over the year, which tells you how shifty the financial institutions who were selling PPI, have been. Cases are still coming to light, with some banks contacting customers to tell them that they’d applied PPI to credit cards without ever telling customers. Worth ringing your bank up to see if you’re in for some compo.
The way that the bank have failed customers concerning their handling of payment protection insurance complaints is bad enough, but it turns out they also tried to mislead the City regulator, which is not on. The Financial Conduct Authority said the penalty was the largest they’ve doled out regarding PPI bother.
The FCA said that this fine partly reflected “inappropriate policies” introduced in 2011 by Clydesdale which resulted in PPI complaint handlers “not taking into account all relevant documents when deciding how to deal with complaints.”
The statement said: “In addition, between May 2012 and June 2013, Clydesdale provided false information to the Financial Ombudsman Service in response to requests for evidence of the records Clydesdale held on PPI policies sold to individual customers.”
“A team within Clydesdale’s PPI complaint handling operation altered certain system print outs (in a small number of cases) to make it look as if Clydesdale held no relevant documents and deleted all PPI information from a separate print out listing the products sold to the customer.”
“These practices were not known to or authorised by Clydesdale’s PPI leadership team or more senior management.”
Thanks to all this, the watchdog said that, thanks to Clydesdale’s shenanigans, of the 126,600 PPI complaints they oversaw between May 2011 and July 2013, around 42,000 of them could well have been unfairly thrown out and up to 50,900 upheld complaints may have paid out too little.
Good news if you’re a Clydesdale customer who has been affected, as the bank will be getting in touch to smooth everything over and sort it out. Hopefully, that’ll mean some money in your account.
Acting chief executive of Clydesdale and Yorkshire Banks, Debbie Crosbie, said: “In 2011 we introduced changes to our policies and procedures that were designed to help us respond to PPI complaints. A number of these changes were inappropriate and have disadvantaged some of our customers. We got this wrong and I am sorry for that.”
“We deeply regret any instance which led to the Financial Ombudsman Service receiving incorrect or incomplete information from us. These practices were not authorised or condoned by the Banks. As soon as this issue was discovered, we took immediate steps to stop it; we made the regulator aware and rapidly introduced strict new monitoring procedures to prevent any recurrence.”
The PPI debacle has become one of the most shameful episodes in British banking of the last ten years. And there’s quite a range of knobbery to select from.
A whopping £17.3 billion has now been paid out, after PPI was ruled to be an utterly despicable piece of mis-selling, often with no actual thought as to whether the customer could pay it back or not.
Payment Protection Insurance or PPI, was meant to protect borrowers in the event of sickness or unemployment, but were often sold to those who would have been ineligible to claim.
The Financial Conduct Authority (FCA) said it would use its findings, due to be published in the summer, to assess if the current approach to compensating customers is working properly. Because there just hasn’t been enough money squandered on this.
The FCA said in a statement: “The FCA will then consider whether further interventions may be appropriate, which could include a consumer communication campaign; a possible time limit on complaints; or other rule changes or guidance, or whether the continuation of the PPI scheme in its current form best meets its objectives,”
“While this work continues, the FCA expects firms to continue to deal with PPI complaints in accordance with our requirements,”
Banks such as Lloyds, Barclays, HSBC and Royal Bank of Scotland have already set aside £24 billion to compensate consumers, with many of them wiping off the entire debt of customers
Since 2011, the banks have dealt with over 14 million complaints about PPI, and have got to around 70% of customers paid back.
There’s still around 4,000 complaints coming through the banks each week about PPI, so even if you have the slightest doubt, get in touch with them.
Honestly, you can’t trust anyone these days.
More financial institutions raiding the funds in the large biscuit tin under the bed news as Barclays have put aside £500m to cover the cost of the investigations into the rigging of currency markets.
This £500m is much larger than the £290m of total fines that Barclays have received for fiddling Libor in 2012, and is released as the Financial Conduct Authority tries to sort out a settlement with six major banks over their roles in the £3.5tn a day foreign exchange markets.
We should have a result of the investigations some time in November and RBS will be publishing their results from all this tomorrow.
Barclays told everyone about this provision as they reported their figures for the third quarter of the year, where they also lost £170m as they covered the cost of the payment protection insurance (PPI) mis-selling farce.
Of course, this all means that Barclays profits have taken a huge hit, but frankly, it is their own fault so they can’t moan about it.
The result of all this means that there’s going to be some costs cut. There’s a plan for Barclays to axe 19,000 jobs and investors need to be appeased as they’ve been furious at the high level of bonuses being doled out to top brass.
This all comes after the Lloyds group made similar provisions and, of course, announced huge job losses. Across the banking and finance sector, the PPI scandal is the costliest thing that’s ever happened in banking industry.
The tax-payer saved bank is said to have put aside £600 million to cover the PPI mis-selling shambles, which is on top of another £600m which Lloyds threw at it earlier this year.
Lloyds said at the time that, although the number of PPI claims is falling, it is still paying out around £200m a month to victims.
This is on top of the news that the bank was the worst performing UK bank in the European bank ‘stress test’ and the confirmation that there’d be 9,000 job losses over the next three years .
As PPI was designed to cover repayments on loans and credit cards, most loan and credit card companies sold the product at the same time as they sold the credit.
By May 2008, 20 million PPI policies existed in the UK with a further increase of 7 million policies a year being purchased thereafter. Surveys showed that 40% of policyholders claim to be unaware that they had a policy.
Complaints about PPI (payment protection insurance) have fallen from last year’s figures, which may sound like good news, but according to the Financial Ombudsman Service, it is still at a historically high level.
Basically, this drop isn’t particularly good news as it is akin to saying ‘man only kicked you up the arse 40 times last year, down from the previous year’s 57 buttock assaults.’
The figures are still officially ‘whopping’. The FOS said it took 133,819 PPI complaints in the first six months of the year, compared with 193,054 in the previous six months and these complaints still account for around 70% of the all the cases that the ombudsman receives.
The FOS said: “Around 5,000 people a week are currently asking the ombudsman to look into their PPI complaint. This is down from the highs of 2013 when we were receiving over 12,000 a week, but still significantly more than any other financial product.”
This year, the FOS took on just shy of 400,000 new cases and since 2011, banks have coughed-up £16bn to customers in compensation, and they’re going to be paying out more.
The FOS’s chief ombudsman, Caroline Wayman, said: “Responsibility for sorting out the mass mis-sale of PPI is still the major part of the ombudsman’s workload. We’re seeing more and more people turn to us in frustration where they feel their bank or insurer simply doesn’t understand or really care.”
And get this – complaints are likely to rise even further because the FCA ordered the banks to reopen a further 2.5 million complaints.
They can’t even do an apology properly, can they?
These shortfalls apparently affect credit card customers with Lloyds Banking Group, Barclays, Capital One and MBNA.
It seems that they’ve not paid back charges and penalty fees for those with a policy that is linked to a credit card. While some have seen thousands of pounds repaid in interest and premiums, some customers have been stiffed.
These figures come from a BBC report and, it is worth noting that they’ve not shared their calculations with the Financial Conduct Authority – it seems the FCA have a difference figure and have said: “In some cases a penalty fee may have been incurred for going over a credit card limit regardless of the PPI, in which case we would generally take the view that this charge would not need to be refunded.”
Lloyds Banking Group said in a statement: “We are committed to doing the right thing for our customers and this includes ensuring that each PPI case we receive is investigated on an individual basis. When a customer lets us know that they may have incurred other costs because of their credit card PPI policy, we will investigate and make an appropriate refund.”
This is a story that will rumble on and on.
Allegedly, Lloyds Banking Group – who have never been known not to serve themselves first – have been withholding millions of pounds of PPI compensation, thanks to a loophole in the law.
The Financial Ombudsman Service say Lloyds is using an ‘alternative redress’ scheme, which complies with the Financial Conduct Authority’s rules, as a way not to give customers their full payouts.
The alternative redress scheme is an obscure, generalised rule that assumes that customers took out regular premium policies – and that they must be reimbursed for that.
But some customers didn’t take out regular premium policies. They were sold single policies on more than one loan. So Lloyds have been deducting the cost of a cheaper regular policy from the payouts, even though some customers are owed more.
For example, one Halifax customer with 2 loans was offered £2300 PPI compensation. But when she brought the case to the Financial Ombudsman, Lloyds were asked to pay her an extra £1200.
Lloyd’s said yes, it WAS using the alternative redress system, but argued that it had done nothing wrong, saying: “The FCA handbook is very clear that in these specific circumstances, the provider should give redress that puts the customer in the position they would have been in had the customer taken a regular premium policy.’
If you want to watch Lloyd’s squirm on TV, a BBC special about the PPI compensation, ‘Britain’s Biggest Banking Scandal’ is due to air tonight.
Home Retail Group, the owners of Argos and Homebase, have put aside £25 million to compensate customers who were mis-sold PPI on household purchases such as tellies, kitchens, you name it.
Shoppers who bought items on credit, would’ve been offered PPI cover through the company’s financial services.
The group has made similar provisions in the past, but this is the first time they’ve been made public. Home Retail is writing to affected customers, it said.
Home Retail’s outgoing chief executive Terry Duddy – the managing director of Argos, John Walden, is due to take the reins on Monday – said there was no certainty this was the end of the problem but added it was not in the same league as at the banks which together had paid out £22bn.
This has taken a bit of the shine off the company’s recent set of figures, which saw like-for-like sales at Argos rising 5.2% in the eight weeks to 1 March, while underlying sales at Homebase jumped 9.3% as both chains benefited consumer confidence picking up. The shares closed up 5% at 215.4p.
If you feel like you were mis-sold products by these companies, get in touch with Home Retail Group or call them on 0845 603 6677.
The whole PPI misspelling saga has been dragging on for years. Most commonly attached to loans or mortgages from banks, the cash windfalls received in compensation payouts to the mis-sellees is enough to make you wish you had been
gullible fore-sighted enough to take a policy out in the first place. But if you were unlucky enough to have missed that boat, never fear, a new compensatory ship is rolling in. Card Protection Plan compensation.
The Financial Conduct Authority announced yesterday that they are instigating a new tranche of compensation claims for policies sold by Card Protection Plan Limited (CPP), who, unsurprisingly, sold card protection plans as well as identity protection policies, whatever they are.
An estimated seven million policyholders will receive a letter from CPP during February 2014 enclosing a compensation claim form, or two forms for those who purchased both the card and identity protection policies. The policies were often sold when customers called to register or activate a debit or credit card.
The letter will detail how to make a claim IF you feel your policy was mis-sold. Examples of how products may have been mis-sold include being given misleading or unclear information when the policy was sold, on the basis of which, the policy was purchased. Note that the FCA has already found buckets of evidence of widespread mis-selling by the company, resulting in a £10.5million fine in 2012.
Claim makers will not need to provide documentary evidence, but will need to write a short statement saying why the policy was mis-sold. No charge will be made for making a claim (other than by pop-up claims handlers who are probably worming their way up right now), and all claims must be received by 30 August 2014. Note that making a claim will cancel any policies still in existence, so those receiving benefits might want to think carefully before jumping on the bandwagon. Anyone who thinks they should be entitled to claim, but who does not receve a claim form by the end of February should should contact CPP on 0800 083 4393.
Anyone entitled to compensation will have the premiums paid since 14 January 2005 returned, less any sums paid out under the policy, but plus interest. Any premiums paid before that date are lost because such policies were unregulated before then (so providers could essentially do what they liked.)
The banks and card providers who have agreed to provide compensation under the scheme are as follows:
Bank of Scotland Plc (part of Lloyds Banking Group)
Barclays Bank Plc
Canada Square Operations Limited (formerly Egg Banking Plc)
Capital One (Europe) Plc
Clydesdale Bank Plc (part of National Australia Group Europe)
Home Retail Group Insurance Services Limited
HSBC Bank Plc
Morgan Stanley Bank International Limited
Nationwide Building Society
Santander UK Plc
The Royal Bank of Scotland Plc
Further information about the scheme is available by calling the dedicated helpline on 0800 083 4393 or on www.cppredressscheme.co.uk