FCA Notes That Public Is Still Unspurned By Impending PPI Claims Deadline

March 23, 2017
by admin in PPI News

The Financial Conduct Authority notes that only about one out of five consumers are making claims regarding their payment protection insurance — an initial expectation as its “Consumer Communications Campaign” has yet to launch as advertising firm M&C Saatchi is currently developing its message. The PPI claims deadline was announced early March and it lands on 29 August 2019.

Majority of consumer groups have condemned the decision given that the FCA’s handling of the scandal is in favour of the banks. Which? said that banks have yet to be pro-active with helping consumers know more about their possibly mis-sold payment protection insurance. Moneysavingexpert founder Martin Lewis said it is “flabbergasting” to see the Financial Conduct Authority side with banks as the consumer public have yet to trust them that they would not commit these same errors with future financial products and services.

However, Citizens Advice supported the decision seeing that it would “help to draw a line under the ongoing scandal.” Its main concern is to ensure that all complaints are handled effectively.

FCA Chief Andrew Bailey defended the decision to impose an August 2019 deadline. He mentioned that consumers are not urged to make a complaint unless a deadline is in effect. Along with their public address campaign in the form of an advertisement, the City watchdog hopes to make progress with payment protection insurance.

See If You Were Mis-Sold PPI For These Three Reasons

March 20, 2017
by admin in PPI News

Payment protection insurance is mis-sold to 3 out of 5 UK borrowers, which means any borrower from the 90s to the year 2010 is likely paying for an insurance policy they are likely ineligible for or could not use. Any borrower who purchased an insurance policy upon a bank employee or financial advisor’s insistence has the right to reclaim their refunds — and in doing so gain the following perks.

The average payment protection insurance refund is about £3,000 and may likely have an additional £300 for PPI compensation, calculated per year by APR. Any consumer repaying their PPI and encountered numerous issues in the process could be recompensed for all expenses they encountered — such as an inflated repayment amount due to interest rates for unpaid PPI policies.

Another is to ensure they get their claim processed before the August 29 2019 PPI claims deadline. The Financial Conduct Authority had confirmed the PPI deadline for 2019. Consumers who process their PPI claims early can retry the process with the Financial Ombudsman with ample time to see whether banks rejected a valid complaint.

Lastly, making a claim also helps the banks streamline their PPI claims process. Admittedly, bank systems for PPI refunds could do better but it is only through pressure and experience could banks improve their services. Do a favour for almost every UK consumer by making the process easier.

Lloyds Sets Aside £350m To Cover Further Mis-Sold PPI Claims Before August Deadline

March 13, 2017
by admin in PPI News

The Lloyds Banking Group had added a further £350m to its PPI recompense package in anticipation for a bigger number of PPI complaints before the August 29, 2019. Lloyds said the additional PPI provisions is in anticipation of the number of Plevin cases that could come in the next few days.

According to Lloyds, the new Plevin guidelines requires banks to contact customers who had made an earlier complaint for PPI especially if their financial advisor or bank employee had earned more than 50% in commission without disclosing this information to the customer.

The Plevin guidelines — as defined by the UK Supreme Court siding by Susan Plevin against Paragon Personal Finance — would refund consumers mis-sold PP if the sale representative did not disclose their amount of commission to the consumer before selling them the insurance policy.

The Financial Conduct Authority had announced last March 2 that August 29, 2019 would be the last day for claiming payment protection insurance refunds. Consumer groups expressed their disappointment with many saying banks are still lacking proactivity with contacting consumers possibly mis-sold PPI and a correction overhaul in their system with the FOS still declaring 50% of reviewed complaints in favour of consumers.

Claims management company We Fight Any Claim has filed a judicial review of the Financial Conduct Authority’s actions based on Stephen Knafler QC’s conclusion that the FCA will breach its “responsibility to the public consumer” by siding in favour of banks through a PPI claims deadline.

Three Things To Remember Before The PPI Claims Deadline

March 7, 2017
by admin in PPI News

The Financial Conduct Authority finally confirms that payment protection insurance claims would end by 2019 August. Despite consumer setbacks and the outcome of a legal contention between consumer groups and the City watchdog, it would be best to remember these three things in the next two years as one plans to reclaim their refunds.

Consumers have the right to access information regarding their insurance policies more than the six years worth of records banks present upfront.  A data access request could cost about £10 and could pull out more than 10 years of information regarding a financing — specifically useful for mortgage possibly mis-sold payment protection insurance.

Claims management companies have special arrangements with banks regarding making complaint — which makes them popular despite consumer groups advising against using a “middleman.” CMCs could facilitate complaints faster and some are integrated with high street bank systems. Most work on a no-win no fee basis, making the burden lighter for consumers.

Lastly, consumers should expect their claims against their bank likely to fail. MoneySavingExpert and Which? contest that the FCA gave banks better protection than consumers because banks have yet to improve their PPI claims processes. The Financial Ombudsman Service’s figures indicate that 50% of complaints from consumers are still in favour of consumers — indicating that banks are still unfairly refunding consumers.

PPI Deadline Finally Confirmed By City Watchdog

March 2, 2017
by admin in PPI News

On March 2, 2017 the City watchdog confirmed that mis-sold PPI claims would be final by August 29, 2019. The FCA confirmed that it would have M&C Saatchi and Gottlieb-Manning OMD to oversee a public service “consumer communications campaign” that would begin in August 2017. The advertisement would provide instructions on claiming PPI against one’s bank.

According to FCA Chief Andrew Bailey, the deadline would help mis-sold PPI victims to “take action” rather than delay their processing of complaints. He said that the FCA has considered all feedback from their public consultation and it believes that a PPI claims deadline would “greatly benefit consumers.”

Consumer groups including Which? are opposed to the deadline stating that the UK banking industry has yet to streamline its PPI claims process. According to Which? Campaigns Director Vickie Sheriff, the banks should be “working much harder” in proactively resolving consumers complaints — a task they had failed and left to claims management companies.

MoneySavingExpert founder Martin Lewis said the deadline is “flabbergasting.” He said that still a 50% uphold rate for consumers exist in the Financial Ombudsman for most banks. Lewis added that consumers could not give banks the trust to “deal with complaints fairly” because most of their rejected complaints are wrongly-judged.”

 

Reclaiming Your PPI Should Be A Priority Because Of These Three Things

February 27, 2017
by admin in PPI News

The Financial Conduct Authority has sent a clear message to the consuming public — the UK PPI claims is to end by June 2019 — and the advertising campaign would reinforce this message continuously until after two years. Consumers mis-sold PPI could receive more than £3000 on average for their banks’ misdeeds. However, not everyone is prioritizing payment protection insurance when they should be because:

This is Your Money

Banks — including high street banks — are involved in the biggest financial scandal of the United Kingdom. In fact, UK taxpayer-backed and biggest PPI mis-seller Lloyds is still committing errors in providing proper recompense for banks, along with almost every bank in the country. if they make an error on any consumer’s banking detail, that consumer will need to try once again — waiting another quarter for results.

The Longer Lines

The closer the deadline gets, the advertisement urges more people to make their PPI claim. It is true that after the PPI deadline, the FCA would not honour requests to re-assess certain insurance troubles. However, the public legal backing for PPI will not be honoured, making finding legal aid for the case once again difficult and expensive.

Incomplete Compensation

As banks are likely to “harden up” after the PPI claims deadline, they may also use unscrupulous methods to strip once again off a few amounts from your recompense. They can do this easier without legal probes from the Financial Conduct Authority and the Financial Ombudsman trailing their every move.

Lloyds Profits From Lower PPI Refund Allocations

February 23, 2017
by admin in PPI News

Lloyds Banking Group has the largest mis-sold PPI allocation equivalent to £16 billion out of the £40bn estimated total PPI recompense package for the country. Per quarter, the taxpayer-backed banking giant had allocated more than £1 to £2bn. Its full year results for 2016 signify that it had repaid lower amounts for PPI garnering a profit increase of 158% due to lower allocations for mis-sold PPI.

Lloyds shares increased to 69.2p with a 3.7% jump an hour after the opening of the markets. However, Lloyds is still tarnished after having committed breaches over PPI rules — specifically a gaffe in handing overcharged and wrongly-assessed annual statements to more than 200 PPI customers who had repaid the amounts.

Lloyds reported a total income of £17.5 billion. A reduction of 3% in its operating costs had helped boost its profits — which the bank attributes to the £1.6 billion investment it made to “simplify the business.” According to Lloyds Chief Executive Antonio Horta-Osorio, the “simplification and the transformation” of Lloyds’ business is done; the bank will now focus on “delivering the best customer experience” through development of the bank’s financial technology advancements.

Horta-Osorio stressed that the bank is now focused on a “simple, low-risk business model” which he considers to be “the right one.”

After The PPI Claims Deadline You Can Still Claim PPI In Three Ways

February 17, 2017
by admin in PPI News

Mis-sold PPI is refundable still after the PPI claims deadline — but the banks and authorities will not recognise the support of claims management companies. CMCs — which have business relationships with banks to ease the management of mis-sold payment protection insurance policies — will find themselves out of business after the deadline. But for consumers, three ways to claim refunds still exist.

The Financial Ombudsman Service is dedicated to resolving all types of issues consumers might have with their bank. The PPI claims deadline can pass but the FOS is still required to defend consumers and align product parameters to consumer protection laws — which means the FOS would still decide on any payment protection insurance claim.

The Financial Conduct Authority made clear the PPI claims deadline only pertains to banks and not insurance companies themselves. Most banks work with third party insurers — which would honour PPI inquiries from a consumer’s legal representative. If the product is truly mis-sold, the insurance company is required to refund it by law.

By law, consumers are and will still be on the right side of protective law. To go beyond it would mean the law is bent or even broken deliberately. A bank complaint left unresolved by the bank could mean a grievance, which would mean the legal courts proceeding with the consumer’s action.

Scottish PPI Claimants Makes PPI Claim Twice Due To Unfair Initial Compensation

February 14, 2017
by admin in PPI News

According to a claims management firm in Scotland, they have secured second payouts for Scottish consumers who were initially given unfair refund and compensation for their payment protection insurance claims. New legal loopholes — according to Scotland Herald — are “delivering unexpected first or second batches of compensation.”

 

Legal loopholes such as having compensation for an early lender shutdown on their claims have helped borrowers reclaim more than their refunds as PPI compensation values increase. Also, the Plevin ruling may also apply its landmark decision applied for all consumers mis-sold PPI. Susan Plevin’s case could mean financial advisers and insurance agents who profited more than 50% from the actual PPI price sold could have their PPI refunded on grounds the sale is invalid.

UK’s mis-sold PPI scandal has earned more than £40bn in total profits lost by banks with half of the amount repaid to consumers. The new legal loopholes may also increase banks’ administrative costs as consumers may seek the opportunity either to refund their insurance policies despite legitimate selling or claim an unfair initial compensation amount from their banks.

The new Scottish rule could help consumers who were turned down initially to reclaim their true compensation amount. In addition, banks who do not disclose their commission would need to refund the PPI repayments.

Everyone With PPI Can Now Claim Refunds Because Of Plevin

February 10, 2017
by admin in PPI News

Money Saving Expert founder Martin Lewis shares that UK’s biggest financial scandal is not exclusive for those mis-sold the insurance policy. Mr Lewis said the groundbreaking implications of Susan Plevin’s case involving high commission consumers owning PPI could use to reclaim their monthly payments.

The Susan Plevin case against Paragon Personal Finance had the UK Supreme Court rule in her favour. The Court ordered Paragon refund her for her invalid payment protection insurance due to “substantial commission” received by Plevin’s financial adviser. Mr Lewis said the amount for “substantial commission” is likely more than 50% of the financial adviser’s commission from the insurance product.

If the landmark case indicates the amount to be as high, PPI owners who were not mis-sold the insurance policy could make a PPI claim. However, the caveat still stands whether these claimants could receive their 10% PPI compensation — a matter that the City watchdog and the banking industry must clarify before applying the Plevin argument.

The UK Supreme Court, the Financial Conduct Authority and the banking industry must ensure the application of the Plevin argument before the end of 2017 to allow consumers to make a claim immediately before the appointed June 2019 deadline. So far, the payment protection insurance mis-seling scandal had earned more than £40bn in the last seven years.