I don’t know if I paid PPI, how do I check if I’m entitled to a payout?

Countless numbers of numbers of people have unwittingly signed up for PPI and have forgotten all about it. If you think you’re one of those people, you might not know where to start.

If it’s a case of not knowing whether you’re entitled to reclaiming mis-sold PPI, then we can help. Hundreds of thousands of consumers have successfully clawed back money they spent unknowingly on PPI, plus interest. So you have a good chance of success.

I don’t know if I paid PPI or not

Don’t worry. If you’ve been super organised and managed to file all your credit records mortgage agreements and loan paperwork, it will be worth going through the backlog and looking through.

Look for any mention of an insurance fee or cover through redundancy or ill health. Some lenders used the terms ‘payment cover’, ‘protection plan’, ‘ASU’, ‘loan protection’, ‘retail payment protection’, ‘loan care’ or similar.

I don’t know if I paid PPI and I’ve forgotten which lenders I’ve borrowed from!

Don’t worry. Not everyone keeps archives of paperwork at home. Sometimes, if you took out a credit card ten years ago, and ended up paying it off, it’s easy to forget who it was. The next step is to go online and check your credit history. This has every card, loan, mortgage and direct debit taken out and paid by you over the past six years. This is a very handy resource to job the memory.

I know who my lenders were but have no paperwork to back up my claim.

Don’t worry. Lenders are inundated with people’s requests. While as much paperwork helps speed up the process, if you cannot trace a single document, just pick up the phone and ring them up.

Some lenders request a £1 payment to provide a copy of the agreement you originally signed. If your account is closed, they might charge a little more to do a thorough search.

The PPI reclaim departments of all these major institutions are now so developed to handle claims that they more than likely have all the information to hand.

If you cannot call on the phone, some lenders have online forms. In our experience, writing a letter works just as well too.

Posted on in Reclaim.

How do I prove mis-sold PPI from a long time ago?

With billions of pounds being paid out in personal protection insurance since 2011, consumers are enjoying small windfalls on the mis-selling of protection schemes.

However, the vast majority of these claims have been made in the past decade, and as anyone who has taken out a PPI claim knows, your credit history only goes back so far. In most cases, the records go back just enough, but countless numbers of the British public maybe missing out on tens of thousands of pounds in mis-sold PPI.

The official cut off point for lenders to hold on to records is six years. Anything longer than this can prove problematic for anyone making a claim.

Mortgages that were taken out twenty years ago, paid up and closed have been causing a headache for a number of people across the UK, who closed their accounts so long ago, they have even forgotten who their lender was.

These records do not appear on their credit history through the statute of limitations, records have been deleted, destroyed or forgotten about, and consumers are wondering what their options are.

According to the Citizens Advice Bureau, anyone looking to get more information on mortgages long forgotten about can get more information from the land registry who should have details on sales over the past century. However, getting a clear answer from them is not guaranteed.

Your next step is the Government’s land registry database, which you will be able to access in exchange for a few pounds. This registry documents lender’s history with properties they have agreed mortgages on. You should be able to trace your old address to the lender you borrowed from, and contact them to check their records for mis-sold PPI.

However, depending on the amount of time that has passed, there is no guarantee these records have been kept.

Despite this, the six-year cut off mark doesn’t necessarily mean all banks do away with records, and they may be sitting on data which may be a few decades old.

If you manage to find substantial proof that you were mis-sold PPI, you have until August 2019 to claim.

 

Posted on in Reclaim.

PPI claim deadline challenged by claims management firm

The PPI claim deadline of August 2019 has been set in place for some time, however a claims management company have challenged the Financial Industry to review the cut-off over claims that the decision was “clearly unlawful”

The Wales-based We Fight Any Claim has mounted the legal contest, after a judicial review concluded that the deadline for claiming on PPI was criticised, with We Fight Any Claim announcing that the PPI claim deadline would result in a win for the banks, loan companies and credit card firms who mis-sold PPI.

Mark Davies, the legal advisor for We Fight Any Claims confirmed that the company had been lobbying the FCA to cancel the deadline, as the public need more time to look into their PPI affairs. However, so far their concerns were not being listened to.

Speaking to Insurance Business Magazine, Davies commented, “Over the last 12 months, we have repeatedly warned FCA that what they planned was not just plain wrong but was clearly unlawful,” he said. “We have also provided the FCA with the detailed and closely reasoned opinion of leading counsel, Stephen Knafler QC, as to the fundamental problems with their approach.”

He warned: “Unless these proposals are challenged, the only winners will be the banks and card providers who sold this toxic product. Millions of ordinary people, many of whom are not even aware they were sold PPI, will lose out.”

The FCA finalised deadline plans back in March of this year, which they claimed was to put a mark in the sand, encourage consumers to check whether they had a case for mis-sold PPI and prevent the saga from being dragged on and on.

“Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off,” said FCA chief Andrew Bailey. “We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint.”

He added: “We have carefully considered the feedback we received and we still believe that introducing a deadline for PPI complaints and a communications campaign warning of the deadline will benefit consumers.”

 

Posted on in Reclaim.

PPI claims scandal over “lost” claims for thousands of consumers

While the financial sector is shelling out billions in PPI claims, the big banks are coming under fire for allegedly sabotaging payments by stalling cases, or “losing” vital data relating to individual cases.

Since compensation started in January 2011, UK consumers have enjoyed a £27.1 billion payday. And it sets to continue with banks putting aside more and more money to cover future claims.

The role of PPI was to insure both the banks and consumers when repayments on loans, mortgages and credit cards were made impossible through redundancy or ill health. The courts decides in 2010 that there had been a huge and widespread scandal involving the misspelling of this insurance product, and that countless number of consumers were entitled to a full rebate, plus interest.

However, it now appears that there has been an increase in the number of consumers reporting that their data and files to their cases have been lost. The Alliance of Claims Companies (ACC) recently reported that Black Horse, the motor finance firm has reported that it could not find up to 80 per cent of claimants’ details.

Other banks have reported losses, although not as steep. In terms of rejected claims relating to loss of data the following banks have reported the following:

HSBC: 6 per cent in January, 42 per cent in April
Barclays: 8 per cent in January, 30 per cent in April
MBNA: 7 per cent in January, 28 per cent in April
Lloyds: 5 per cent in January, 35 per cent in April
RBS: 29 per cent in January, 47 per cent in April

(data courtesy of LondonLovesBusiness)

Banks are contacting their consumers to produce more evidence for their case, with critics arguing that this is a delaying tactic, and could also deter the consumer from chasing their PPI claims.

This latest criticism comes after the Financial Conduct Authority (FCA) has announced plans to urge the public to chase up any PPI refunds they feel they may be entitled to. The deadline for PPI claims to be made is August 2019, which should trigger even more claims. However, with the latest setback delaying current claims, it might lead to further problems for finance departments in charge of resolving outstanding and future claims.

Posted on in Reclaim.

ASA Upholds Complaint Against PPI Claims Management Company Ltd (Lion Claimline)

PPI Claims Management Company Ltd (trading as Lion Claimline) have recently been the cause of a complaint to the Advertising Standards Authority, the UK’s independent regulator for advertising.

The complaint was upheld and centred around the wording on a marketing email sent out by Lion Claimline. The full adjudication can be read here.

ASA adjudication against lion claimline

Screenshot from ASA website.

The issues concerning the complainant were two fold. Firstly, the company claimed in its marketing email that it only sends emails to people who’ve provided their permission to receive them but this was a claim that couldn’t be verified and was therefore considered misleading. And secondly, this therefore made the email unsolicited and therefore in breach of the CAP Code.

Lion Claimline claimed the email addresses came from a 3rd party lead provider. The ASA deemed this was still a breach and Lion Claimline have been advised that they must not send solicited emails again.

ASA Complaints Against PPI Claims Management Companies

Lion Claimline are far from the first PPI claims management company to have a complaint against their advertising practices upheld by the ASA. You can see 13 complaints (at the time of writing) about advertisers in the PPI space since 2010 here. 12 of those were fully upheld.

The complaints visible on the ASA website include multiple complaints about text messages claiming things like “We have your records and can see you are owed £3,250,” and so on.

All UK advertisers, not just those in the PPI claims space, are expected to adhere to the CAP codes that can be viewed on the official CAP website.

 

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Big 4 Banks Set Aside Close to £20 Billion for PPI Payouts

Following an announcement from Barclays a few days ago that they’ve set aside an additional £900 million for the cost of PPI, the banking giant has now set aside £4.8 billion. But how much have the 4 major banks set aside in total to payout for the PPI mis-selling scandal.

  • Barclays – £4.8 billion
  • HSBC – £2.1 billion
  • Lloyds – £9.83 billion
  • Royal Bank of Scotland – £3.1 billion

The bill for Lloyds looks set to be almost as high as for the other 3 major banks all combined.

cost of PPI for big 4 banks

(Sources: Guardian and Financial Times).

This leaves the total pot put aside by the UK’s 4 biggest banks at £19.83 billion. Massive. And there’s no guarantee this figure won’t end up increasing over time.

 

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PPI Claims Hit £1.9 Billion – But Billions Still Left to Claim!

PPI Claims have now hit £1.9 billion, as recently reported by the FSA. The rate at which claims were being made sped up dramatically towards the end of 2011, with a record pay out month in December, where £441 million was paid out.

 

PPI claims will undoubtedly have had a large impact on losses reported recently by Lloyds TSB.

 

However, reports in May 2011 suggested that claims were likely to reach £9 billion, suggesting that this could still only be the beginning of claims made against providers who mis-sold payment protection insurance policies for years.

 

A typical PPI claim results in around £2,750 in compensation, but there are widely reported cases of much higher claims successfully being made.

 

Sources

http://www.bbc.co.uk/news/business-17125141

Posted on in Reclaim.

Mis-Sold Payday Loans Claims – The Next PPI?

Will mis-sold payday loans claims become the next PPI claims?

Consumers who were mis-sold payment protection insurance policies have been making PPI claims for several years now. Providers have been widely criticised for the way the policies were sold.

However, one financial product coming under more recent scrutiny is the payday loan. Lenders like Wonga, Uncle Buck, Mr Lender and a host of others lend smaller sums of money to consumers just to ‘tide them over’ until their next pay packet. The loans typically range from £50 to £750 and the sum must be paid back on the consumer’s next payday.

In many cases, the representative APR on these loans is over 4000%. So, for example, if you borrow £400.00 with Wonga.com for 30 days, you would have to pay back £525.00, but failing to make a repayment for a year could leave you owing more than 40 times what you borrowed!! Martin Lewis of Moneysaving Expert wrote a witty, if not somewhat alarming post on how long it would take to amass the equivalent of the US National Debt after borrowing £100 from Wonga! That post garnered a lot of attention!

 

Could Mis-Sold Payday Loans Claims Realistically be Successful?

Realistically, in order for anybody to make mis-sold payday loans claim, they have to be able to prove they were mis-sold the loan. Payday loans companies are generally all very up front about the product, about the representative APR and about exactly how much will have to be repaid if you take the loan out.

With PPI, common complaints included not being told you had the product with your loan or credit card. That’s because PPI is effectively a cross sell from another product (a loan, mortgae or credit card). It’s different with Payday Loans. The payday loan is the product and the consumer is aware of the product, of the cost of the loan and of its terms.

So while finance bloggers and experts speculate on whether mis-sold payday loans claims, it only takes a quick glance at the websites of the biggest providers to see the lengths they go to in order to make their fees absolutely crystal clear to potential customers. Yes, they’re an expensive way to borrow money and yes, it’s very easy to find yourself amassing debts far higher than the value of the loan, but as long as consumers are made aware of what they are being sold and as long as the product remains legal, there is no mis-selling taking place.

100,000 PPI Complaints to Ombudsman in Last Year

Figures from the Financial Ombusman Service released recently confirmed that, in the last year alone, there were than 104,000 complaints to the financial Ombudsman about PPI (payment protection insurance).

The complaints are not unexpected, with consumers now being made more widely aware of their potential right to make PPI claims.

PPI claims can be made by those who were mis-sold the PPI policies in recent years. This mis-selling was widespread, often deliberate and undoubtedly at huge financial cost to consumers.

At Moneybright, we can help you to make PPI claims. If you’re not sure whether you could be eligible, get in touch today and find out how we could help.

Posted on in Reclaim.

More Time to take PPI Claims to Ombudsman

The Financial Services Authority today given people more time to take their PPI claims to the Financial Ombudsman. Presently, anyone seeking to make a PPI claim has 6 months from the time their clami is dealt with by their bank or provider, to then refer it to the Financial Ombudsman. However, this temporary extension for PPI cases will last until 27th October 2010.

A consumer may only go to the Financial Ombudsman service after receiving a final letter from their bank and not being satisfied with the outcome. Anyone who received this final letter between 28th November 2009 and 28th April 2010.

This comes after consumers have complained about the way providers have been dealing with PPI claims. Banks rejected 60% of claims last year, however of the cases referred to the Ombudsman, 90% were settled in favour of the consumer.

It was recently reported that the PPI claims cases could cost the industry billions as a result of widespread mis-selling of Payment Protection Insurance policies in recent years.

Posted on in Reclaim.