Posted: 10th August 2017
& filed under PPI
Out of all the banks and card companies that were held liable for the PPI mis-selling scandal, Lloyds has proved to be the most notorious. It has robbed its customers off billions of pounds and is still not fully guilty for the mishap. This is why Lloyds is constantly in the news years even years after the scam was initially uncovered.
An undercover sting operation conducted by The Times further laid bare the involvement of lloyds in the PPI mis-selling saga. During the investigation, it was ascertained that there were many suspicious activities and operations that were being carried out in the centre tasked with handling complaints. According to the investigation reports, all the employees working for the claims and complaints department were asked to act ignorant when it came to PPI complaints. They were asked to behave as if they had not sold any policy in an unethical manner to the customers. What is worse is the ideology behind this action. It was discovered that the management at Lloyds believed that if a customer is rejected once, they will give up trying to make the claim again.
According to Lloyds, a customer would not make more attempts if their claims are rejected in the first go. This is why the employees were also trained to be so confident and cold that the customers believe the fact that they have not been wrongly sold any policy. This would ultimately save them a huge amount of money.
After the investigation, the bank was contacted by the authorities, and were asked to give their clarification. In their defence, Lloyds claimed that the centre which is operated by an accountancy firm named Deloitte, was checked and visited much before the undercover reporter was there at the bank. It was also disclosed that the bank terminated all the relations with Deloitte, as it ran similar suspicious activities for Barclays, another big offender in the PPI scandal. Hence, Lloyds claimed that the investigated operations are independent, and they do not reflect the practices at other centres of the bank.
However, the investigation still suggests that the bank had been trying to avoid paying the compensation amount. Being the bank with the maximum number of complaints, it already has a load of claims to take care of. Thus, it has been finding ways to spend less and save more, which is either way an unethical practice for the bank.
Posted: 9th August 2017
& filed under PPI
Whenever the complaints regarding PPI claims are not taken care of by the lenders or the concerned financial organisation, the mis-sold buyers approach an independent body that we all know as the Financial Ombudsman Services (FOS). It is the ultimate problem-solver between the lender and the buyer of PPI policy. In the past few years, as the number of PPI complaints have increased exponentially, the number of complaints coming to the Ombudsman has also increased to a great extent.
FOS has always denoted most of its time just in solving cases relating to mis-sold PPI, and this year seems to be no different. According to reports, the Ombudsman has declared to solve around 360,000 PPI cases in the current year. This is more than double the number of cases that were solved in the previous year. Further, there are new PPI complaints getting registered every single day. it is estimated that there are going to be a quarter million new cases regarding PPI that would be referred to the Ombudsman.
Since a long time, there is a lingering uncertainty about the PPI deadline which is being discussed by the Financial Conduct Authority (FCA). This, along with the intriguing Plevin v/s Paragon Personal Finance case can be the major reasons why these estimates might become inflated. Caroline Wayman, the Chief Ombudsman has declared that along with the current operations, they are also trying to plan for the next financial year as the problems regarding PPI (which is the most significant issue dealt by the Ombudsman) can be uncertain and erratic. It was also claimed that they will try and give quick answers to the customers’ problems and help them solve their problems as soon as possible.
There might be times when FOS is not absolutely approachable due to the overload of cases. In response to this, they have clarified saying that they have been trying to work harder and finishing tasks before time so that they can be more approachable in the future. The Ombudsman has also said that their current manpower is not sufficient to solve all the PPI cases on time. Since April 2007, FOS has received more than 1.6 million complaints regarding PPI. The plethora of cases reached its peak in 2012, when there were more than 12,000 complaints registered every week! Hence, they are planning to increase their workforce to quicken the problem-solving.
Thus, the Ombudsman has estimated to solve much more PPI cases this year than they ever have. They have been constantly working to achieve the seemingly impossible target and doing all they can to make sure that the mis-sold customers receive what is rightfully theirs.
Posted: 8th August 2017
& filed under PPI
Making PPI claims can be a very tedious and complex task, as there is a lot of money involved. You also have to make complex arguments with the lenders or financial institutions, which is not an easy process. You may not be able to do all this by yourself. Hence, there are professional claims companies that help you to settle your claims with the lenders regarding the PPI policy wrongly sold to you. If you go through a claims company, your work is bound to get done faster and much more effectively that it would if you do it by yourself.
Following are some of the benefits of settling PPI claims through a claim company:
- Specialisation – Claim management companies are composed of employees who are professional and very well trained in handling the claims and doing the best they can to help you get your compensation. The agencies are specialised in various sectors, such as personal injury claims, PPI claims and many more. Every department and section has an exclusive professional assigned to take care of the client. Hence, if you go through these experts, you can relax and hand over the responsibility to them.
- Knowledge About The System- When it comes to making PPI claims, the process and the system is really complicated. You need to repeatedly address your lenders and prove that you were mis-sold the policy. If you do not have efficient details, it gets all the more difficult to put your case forward. You may be rejected several times before you finally approach the higher authorities. Hence, it is very beneficial to take the help of a claims company as the employees are well-versed with the system and the complex procedure that needs to be followed.
- Experience – When you are mis-sold a policy, you have little knowledge about the procedure to be followed and the effective steps to be taken in order to claim the compensation. However, the claims companies have personnel that has been working on handling claims for years at a stretch. They know the ins and outs of everything related to making the claims and making sure that you receive them. They would never work on a trial and error method and would never take a chance when it comes to your money. They know exactly what steps to take and what procedures to follow to make sure that your work is done as fast as possible.
Hence, though the claims companies charge a certain commission for getting your work done, you can be assured that your work will be done and that you will get the money back in the form of a long-awaited compensation.
Posted: 7th August 2017
& filed under PPI
Payment Protection Insurance (PPI) was used to take advantage of innocent and ignorant buyers for a very long time. The infamous PPI mis-selling scandal resulted in millions being lost by customers who had no knowledge about where their money was going. Majority of the cases involved PPI policy being sold to them without them being aware about it. The customers were sold the policy along with the loans or credit borrowed from the financial institutions. These are the most common cases of PPI being mis-sold and the victims can immediately claim compensation.
However, there was also a bunch of people that were aware about the policy being sold to them. They made a conscious decision of purchasing the policy. Are these people mis-sold as well? Can they claim compensation from the lenders in the same way as people who are unaware of the purchase? The answer is yes. People who conscious bought the policy can also claim for compensation from the concerned financial institutions, provided the lender hid certain clauses from the buyer while making the purchase.
If the lender does not reveal complete details about the policy being sold to the buyer, it is still considered a financial mis-selling. Thus, if you are self-employed and the lender did not mention the fact that PPI does not cover the buyers who are self-employed unless they are bankrupt, you are still mis-sold the policy and are eligible for the claim. There are also cases of the financial institutions purposefully not revealing various aspects of the policy. Usually, they play around with the exclusions. There have also been several cases of people with an existing sickness being sold PPI. They were never told that PPI would not cover any illness that exists at the time of buying the policy. It only covers the illness arising after the purchase. If you have any existing sickness, your office will definitely have a lot of provisions for you. In spite of knowing this, the lender may not offer you a cheaper and more beneficial policy to you. They will still sell you PPI with you still under the belief that the policy will cover you during the emergency arising out of your existing sickness. This is done for the purpose of earning more commission from the policy buyers.
Hence, people who were unaware about PPI being sold to them are not the only ones who are entitles to claims. If you are aware about the policy being sold, but are not informed about the policy in detail, you are very much eligible for you claims, and on realisation you should make them immediately.
Posted: 6th August 2017
& filed under PPI
There has been a huge media uproar regarding the PPI mis-selling scandal, where millions of buyers were financially robbed off billions from their pockets. If you go back and think about the time it all started, it has been a long time since the affected buyers have been making claims for their compensation. The media coverage has increased in the past couple of years. The claims were being made much before that as well. Keeping all this in mind, it is safe to assume that majority of the affected buyers have received their claims. Nevertheless, is that true?
No, it’s not. According to various reports, it is reported that the PPI scandal is far from getting finished and there are still plenty of claims which have been unresolved. The Financial Ombudsman Service recently declared that it received more than two million new enquiries for making PPI claims during the last year! They also deduced that there was a rise of a whopping 92% in the number of claims as compared to the previous year. They also revealed that settling PPI claims has constituted more than three-quarters of their workload over the last 12 months. This further confirms that the scandal is still far from over.
However, the scary part is that as the banks have been having a hard time dealing with a plethora of claims, they have started resorting to mismanagement. The number of delays in clearing the claims have increased over the course of time. There are a lot of confusions regarding the amount to be transferred and the account where the funds are to be deposited. Lately, the banks are also claiming back the amount transferred to you as the compensation in case a greater amount than the actual compensation amount was paid back. This is turning out to be a common practice by the banks in order to avoid a shortage of money. The buyers are told that a higher amount was transferred into their account by mistake, and that they are required to give the extra money back to the banks. As the buyers are usually not well versed with the final amount received by them as compensation, there nothing much they can do about it.
Hence, it is very clear that these couple of years were not enough for the banks and other financial institutions to pay back all the claims that arose out of the mis-selling of PPI. There are also many people who are still not aware of the fact that they were mis-sold the policy, which is causing an increase in the volume of complaints every year. Hence, if you have opted for a loan or credit from your bank, check your documents and papers carefully to see if you have been mis-sold PPI along with it. Also, if you have already been sold PPI, check all the clauses in detail and see if you were explained each of it properly by the lender while selling the policy to you.