What To Expect In The Next Two Years Before The PPI Claims Deadline is reached?

Posted: 6th September 2017 & filed under PPI

After years of constant complaints, claims and compensations, the Financial Conduct Authority (FCA) started backing calls by the commercial banks to introduce a two year long cut-off for making PPI claims. After a lot of discussions and debates, FCA announced a final deadline for making claims related to mis-sold PPI, which is 29th August 2019.

According to Andrew Bailey, the Chief Executive of FCA, having a deadline will wake people up from the sluggish approach towards their claims. Without a deadline in place, the buyers tend to get casual and avoid approaching the institutions quickly. This deadline would prompt people to take action and check if they have any mis-sold PPI that they are not aware about. However, it is important to know that the deadline will not be applicable to everyone. Following are the areas where it will not be applied:

  • If the buyer has purchased the policy after 29th August 2017
  • Buyers who are holders of a 'live' PPI policy and they have been rejected from making a claim because of selling of the policy – such as the policy exclusions.

Also, the deadline applies to the Financial Ombudsman Services (FOS) and not the Court proceedings. Thus, the lenders and the offending financial institutions like banks and credit card companies will experience a hard time over the next two years. It is projected that the deadline along with the new Plevin guidelines will make people more active. Those who haven't checked for the policy would start checking if they have been mis-sold, and the ones who are already mis-sold the policy would start making claims immediately. Also, the lenders will be required to look for the possible victims and inform them about the chances of having a mis-sold PPI policy. They are also required to get back to the claimants who were previously rejected to make sure there is no error or further room for doubt. This would make sure that almost everyone having a PPI policy is able to make claims and get the compensation they rightly deserve.

Hence, in the next two years before we reach the deadline for making PPI claims, all the authorities will make sure that  ignorant PPI policyholders will check their policies and the affected take quick actions to get their claims. This may solve a decade long issue and struggle of claiming PPI refund and would clear the matter from all records – be it the offender or the offended.

How Will The Financial Guidance And Claims Bill Affect PPI Claim Companies?

Posted: 5th September 2017 & filed under PPI

There have been several cases of mis-sold PPI since the PPI scam unfolded. The number of claims has been increasing so rapidly that the banks and financial institutions are not able to function smoothly. This has resulted in the process getting much slower and more complicated. Hence, more and more people have been taking help of claim companies which help them to get claims faster. This reduces the burden off the affected buyers as all the work is done by the claim companies.

However, not all the companies are efficient and ethical enough to work. While there are certain companies which are fully dedicated and helpful to the buyers, there are also certain companies which are fraudsters themselves. This is why a step was taken by the Government to pass a bill making regulations to the way these companies function. This is the Financial Guidance and Claims Bill, which would look into the matters of claims handling and make sure that the mis-sold customers are treated in a fair and just manner. The bill is currently in the House of Lords at the Committee stage. One of the major aims of this bill is to transfer the responsibility of making regulations from the claim companies to the Financial Conduct Authority (FCA).

Following are the relevant clauses of the bill:

  • Making appropriate amendments to the Financial Services and Market Act 2000 in order to let the FCA have the powers to regulate the claim companies.
  • Giving powers to the FCA to impose a cap on the amount charged as a fee by claim companies for their services.
  • Including a power for the Ministry of Justice to put a transfer scheme in place for the assets/liabilities of the Claims Management Regulation Unit and the staff
  • Shifting the power of handling consumer complaints against the claim companies from the Ombudsman to the FCA

Though the bill is expected to improve the condition of the customers, it is likely to take sufficient time before it is finally implemented. The authorities are not looking to rush into these matters and want to take slow steps in making new regulations. Until that time, the claim management companies will continue to function as they already are. However, this is not good news for people who were mis-sold PPI, as the deadline for PPI claims has been recently fixed to 29th August 2019. This would make the consumers experience more approaches from the claim companies about possible historic policies and claims. This is because the claim companies will have to rush in order to take care of all the claims before the deadline approaches.

Effect Of Delayed PPI Claims Deadline On Banks

Posted: 4th September 2017 & filed under PPI

The complaints for claiming PPI refund have been pouring in for years now. It all started when people started realising that they have either purchased PPI without them being told about it (along with their loan/credit) or they have not been told certain clauses which are important for them to know. This unfolded into one of the greatest and the most expensive scams this country has ever seen. More and more people started to check their documents to see if they have been mis-sold the policy.

As the days passed, the number of claims started increasing. New claims started coming up every single day, that too in thousands! It soon started gaining momentum, which made the media cover it extensively. This further spread awareness and the number of claims increased even more. The number of claims and the amount to be compensated started increasing exponentially in the coming years. This put a lot of pressure on the financial institutions as it is very difficult for them to take care of thousands of pounds on a daily basis. Also, there were many people who were passive about making claims. They kept procrastinating and didn't really do anything about their claims. All these issues gave rise to a lot of opinions. There were several suggestions put forward to the Financial Conduct Authority (FCA) to have a deadline for making PPI claims. Having a deadline would encourage people to file their claims as soon as possible. It would also make people look for any mis-sold policies with them. Thus, the FCA has finally decided to keep August 2019 as the deadline for making PPI claims. Earlier, the deadline was set a year earlier, but this decision faced a lot of flak and from the media and consumer groups. There were still a lot of high-voltage claims coming up every day and people thought that it would be too soon to end the claims. This had a lot of implications on the commercial banks as they will have to face the maximum inconvenience as the deadline is extended. There are already several complaints going to the banks every single day. Further, the deadline has made people more aware about their policies, which in turn increases the claims manifold. Thus, the banks will have to work much harder and pay out much more money to the affected customers. This would add to the already billions that the banks are setting aside only for the purpose of settling PPI claims.

CT Capital Fined £2.6 millions For Mishandling of PPI

Posted: 1st September 2017 & filed under PPI

CT Capital is considered among the most effective financial committees. It has been known for dealing with the cases regarding mis-sold PPI. It took several cases of the victims regarding the issue of mis-sold PPI and promised to solve them with ease. These are the claims handling companies which are a little more sophisticated and official as compared to others. There was a case was where the company was fined more than £2,360,900 by the regulator in matters relating to mis-sold PPI.

The firm was fined in the period ranging between May 2011 and November 2013. Apparently, these matters led to the customers to missing out on the redressal of around £5,959. The Financial Conduct Authority (FCA) had a lot to say about the convicted firm. Some of the statements are as follows:

  • CT Capital claimed that the complaints made during the telesales of the policy through calls are not eligible as a cause for a complaint being upheld in case the subsequent documentation of sales clearly outlined the matters.
  • The firm failed to explain to the customers the crucial fact that lenders are responsible of providing guidance regarding whether the policy is suitable to the customers or not. They have hidden the fact that the customers can approach the lenders for not informing them the fact that the policy is suitable for them.
  • The firm disregarded the complaints that were six years old, whereas buyers were eligible to make claims for mis-sold PPI even if they were over six years old.
  • The firm failed to implement appropriate systems in order to assess the PPI complaint handling procedures and to monitor the degree up to which the customers are treated fairly. Particularly, it didn’t succeed in analysing the decisions of the Financial Ombudsman Services (FOS). The firm was also accused of not conveying the information from the FOS to the customers on due time. The firm is required to share all the information to their clients and discuss all the procedures. Here, CT capital did nothing.

Hence, the firm was dealing with the mis-sold PPI of their customers in an unethical and inappropriate way. This made the authorities alert to them, which led to a severe being handed out for the offences carried out. Hence, always check the firm you're approaching thoroughly before asking them to solve your problems relating to mis-sold PPI.

Is Your PPI Claims Company Giving Your Details To Scammers?

Posted: 31st August 2017 & filed under PPI

A claims company is an important tool to enhance your chances of getting back the PPI refund amount owed to you. It relieves you of all the hassles and ensures that you don’t have to take any burden of undergoing the complicated procedure. However, you should always be careful about the information you share with them.

If you approach a claims company, then they will ask for specific information to take your claim forward such as your residential address, all the contact details and also the information about banks who possibly mis-sold you the PPI. But some claim companies pass along this sensitive information to various scammers. These scammers then use your details to rob you off your money. This has become a very common practice after the infamous PPI mis-selling scandal got heat in the media. Thus, you should make proper checks before you choose your claims company. If you find out that the company is divulging your information to the scammers, don’t panic. Firstly, check if the company is genuine and is functioning as an official organisation. There are many such fraudsters who may cheat you claiming to be a claims firm. Look up the company online. If there is a genuine office address and correct contact details, you can ensure that the firm is authentic.

Once you find out that your firm is giving your details to scammers, you should immediately terminate your contract with it. Generally, the firm will charge a small fee if your claiming procedure has started and you decide to quit. However, if it has been less than fourteen days since the first time you approached the firm, you can end the contract for free. It is always good to terminate the deal before it starts taking a toll on your finances.

Thus, always be careful before giving your personal information to any company. Make sure of their identity and know the purpose for which the information is needed. Also, if possible, have an agreement where it is specified that the firm can’t divulge your personal information to any third party. This would not only make you secure, but would also give you an idea about the nature of your claims firms. If the firm is reputed and disciplined, you can expect your claim to be passed soon and get your compensation quickly. Hence, never blindly trust any claims company for your complaints. Prevention is indeed better than cure.

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