People are being warned by Police and Trading standards to be aware of false PPI claims companies that are contacting the public. The warnings come after sadly one pensioner was scammed out of £8000 after being told he was owed a PPI refund.
The same thing also happened to Alan Shutter who was called by a company calling themselves UKASH. The 54 year old was told he was owed thousands of pounds as he had been mis-sold a PPI policy, he was told all he needed to do was to transfer £150 to the company as an upfront payment and they would claim back the money for him. However when the company asked for a further £140 for tax Mr. Shutter called trading standards and discovered he had been duped. He has been unable to get the £150 back and has also been unable to contact the company that took the payment.
PC Tom Ellerby said: “It is really important that people realise very little is ever given for free, and anybody asking for money to beat a loophole in advance of a handsome payout is likely to be trying to deceive you.
Here are a couple of points to help you ensure your PPI claim is with a genuine company.
Any company informing you that you are due thousands of pounds back in PPI before taking any account details from you, is simply lying. It is impossible to know how much money (if any) you are due to be refunded without the company either seeing your copies of credit agreements or contacting the banks on your behalf after you have filled in a form with your details. Therefore avoid all companies that call claiming they already have your details and can see you have paid for PPI it is a lie.
It is illegal for a PPI Claims Company to take payment for your claim upfront and genuine companies will always work under a no win no fee policy. If a company claims to require an upfront payment do not fall for it. Payments to PPI claims companies should only be made after you have received your refund from the lender and genuine PPI companies such as ourselves will only take payment after you have been reimbursed the full amount from the lender.
The director of enforcement at the FSA has likened the mis-selling of PPI to a shop selling rotten food.
The director said “If a supermarket sold rotten food to its customers, how long would it stay in business? Expectations around the quality of service to customers of financial services should be just as high if not higher.
Bosses of fianancial frims have been highly critisced for failing to embrace the cultural change needed to repair the industry’s reputation with customers following the PPI mis-selling scandal.
Earlier this week astonishingly officials from the British Bankers’ Association had said the industry was not sure what mistakes had been made over the mis-selling of PPI. Margaret Cole described this sort of attitude fromt the banks as “somewhat alarming” and went on to say that cultural changes in the financial sector are required to prevent scandals such as mis-sold ppi from happening. However the fact that the Bankers fail to embrace the mistakes they made is worrying and shows a lack of care for consumers and a resistance to change.
Hector Sants the FSA chiefs executive had this to say on the matter, ” Radical changes require a change in attitude not just by regulators but by senior management of financial firms. They must make real commitment to give consumers a better service. They must commit to run their firms for the benefit of society as a whole and not for the short term benefit of employees or shareholders.”
When you take out loans like mortgages, car loans or other types of loans, it is common for the lender to offer you payment protection insurance or ppi. Ppi is supposed to help you make your monthly loan repayments once you are not able to meet them due to serious illness, accident or loss of employment. The problem is that such policies can be very expensive and unfair to the customer making it a mis-sold ppi policy to millions of people.
The Financial Services Authority (FSA) ruled that most lenders wrongfully sold these ppi policies to their customers. They have begun fining banks and lenders for selling policies that are expensive and offer little protection to the customers. This is good news as policyholders who were wrongfully sold can make their ppi refunds and they may be entitled to excess payments to their lenders.
You may be eligible to make ppi reclaim for many reasons. The most obvious is if you felt you were pressured into taking out ppi when you applied for a loan. In many cases, you could not get your loan approved if you did not take ppi from the lender. Other reasons may include: you were not aware of the real cost of the policy or you thought it was included in the loan.
Trying to claim for ppi refunds is not easy. Banks and lenders tend to deny any ppi claims made against them especially if they know one does not know their rights. So, it is advisable to seek the help of a specialist claims management company in making ppi claims to be able to obtain the right compensation for having been mis-sold a ppi policy.
A lot of people who are processing their ppi refund were sold ppi policies by the banks and other financial firms were worthless and offered the person being insured no protection whatsoever like if you were a part time worker, retired or on a temporary contract, then your ppi policy would probably never pay out making it totally unsuitable. It may also have been unnecessary if you had sick pay cover through your job or had other insurance provisions in place.
Also, ppi policies offered by the banks were often incredibly expensive, reaching up to four times the market rate. These inflated prices saw monthly repayments rise considerably. In some cases, the ppi payments were as much as the loan itself and usually the total cost was added to the loan balance and subject to interest which made the overall repayments totally unaffordable.
This has led to the Office of Fair Trading to get involved and have raised their own concerns that many people who took out ppi policies in the past may have been a victim of mis-sold ppi and therefore could be owed thousands of pounds in compensation once they make their ppi claims against their bank or lender. They way the financial firms went about selling ppi policies has been deemed unethical and has received widespread criticism which resulted in regulation charges allowing people to file for mis-sold ppi claims to receive compensation or to get their money back.
The Financial Ombudsman Services is certainly dealing with thousands of PPI refund sent in by the clients against the banking institutions. To manage to provide any PPI problem to the Financial Ombudsman Services, you should initially track down all your paperwork and exhaust the internal complaint process of the company where you took out your insurance. When the final decision letter has issued, your own claim can be ready for submission to the Financial Ombudsman Services.
Filing PPI refund may be time consuming and also frustrating for the clients. It’s very important to make sure that the Financial Ombudsman Services receives the entire paper work and statement claim on time since there are deadlines for referring a case to them. Make sure that all your paper work is complete without any relevant information have been left out, otherwise the Financial Ombudsman Services will return them and will ask you to send your own PPI claims once again.
A lot of banks United Kingdom has put the PPI on hold because these major banks feel that they didn’t do anything wrong and didn’t want to admit that they have scammed clients. This action of the banking institutions has caused significant delays of PPI claims, specifically at the Financial Ombudsman Service in which there are a lot of problems waiting to see what the next move is.
The Financial Services Authority (FSA) has given the HSBC extra time to deal with a backlog of mis-sold ppi complaints from their customers. The FSA had also given the same to other high street banks, such as Lloyds, Barclays and RBS earlier this week. Normally, banking institutions would have to deal with mis-sold ppi complaints within eight weeks. However, due to the increasing numbers of mis-sold ppi refunds and other complaints from the bank customers, firms need extra time to deal with each customer’s complaint to make sure that every case is being handled properly.
Thousands of complaints were put on hold during the recent High Court hearing and now they must be settled by the end of August this year. New complaints received since the end of the judicial review on the 20th of April, but received before the 31st of August must be dealt within 16 weeks upon filing. Ppi complaints received after the end of August but before the end of this year can be dealt within 12 weeks. From then on, the normal eight-week procedure will be applied.
According to the FSA, the arrangements extend the time periods of HSBC to deal with their backlog of stayed mis-sold ppi claims and other ppi related complaints and the high volume of new complaints on ppi and have been put in place to make sure that the financial firms are able to handle the mis-sold ppi complaints of their customers properly.
Understanding PPI and whether you have an eligible PPI refund claim can be tricky, so we thought you might want to know the three easy steps you can take to see if you have a claim.
1. First you need to find out if you have a PPI policy, you can find this out by looking at the original paperwork for your loan. If you can’t find it, you can request a copy from the lender.
2. While there, also request a copy of your PPI policy’s terms and conditions if you can’t find them and be sure to ask for the original T’s & C’s at the time of your agreement as terms can change.
3. Once you know you have a policy, you can establish how much it’s costing you and whether you’ve been mis sold by speaking to one of our team on 0800 840 7292 or have a chat with an industry expert.
So, there’s three simple steps that will help you find out if you have a policy, if it was mis sold and how much you may be owed. Go do it now! Or if your prefer, we can take care of it all, from requesting paperwork to chasing your lender and securing a payout. Sound good? Get started now…
Look away if you want some cheery financial update about the state of the economy, because this excerpt from the Independent makes for very annoying reading…
“Banks are are cashing in by raising their interest rates, research for The Independent has revealed. Despite the Bank of England last week keeping the base interest rate at a record low of 0.5 per cent for 27 months in a row, the rates which lenders charge customers have risen, in some cases by almost 50 per cent.”
So the banks are still using the lowest base rate on record to make the highest profits on record, with minimum lending rates 500% higher than there were in 2007. To put that more clearly, in July 2007, the rate at which the banks borrowed money from the Bank of England was 5.75%, now they’re paying just 0.5% and charging us all the highest personal loan, credit card and mortgage rates for the last 12 years.
Aside from greed, some industry analysts believe that PPI claims may be to blame for the rise in loan rates…
Speaking about this issue, banking analyst at Defaqto, David Black, says: “One of the reasons that unsecured loan rates have increased is that loan providers are no longer earning commission from payment protection insurance sales. Providers generally are tightening their credit policies and are increasingly limiting unsecured loans to their existing customers.”
The so called mis sold ppi is a kind of unfair deal that gets one consumer to pay unusual amounts or amounts that they don’t know. Anyone can be a victim and you may have been involved with it during your application for loans, mortgages, credit scores, store scores and other related transactions. If you have been mis sold PPI then you could make a PPI reclaim and get all of the unfair payments you’ve made, back in your pocket. To start your PPI reclaim, give one of our experts a call now on FreePhone 0800 840 7292.
To know more on how to get claims in regards to your mis sold ppi, you will have to search it for yourself over the net or contact a special person who has complete knowledge of the matter. Claims specialist can be a good option for you if you don’t have your own solicitor. You can contact them via phone and they can give you good offers nowadays with lesser cost and hassle. To give your PPI reclaim the best possible chance of succeeding, give one of our friendly experts a call now on 0800 840 7292.