41,874 Complaints To Lloyds About Insurance In Just 6 Months
Lloyds Banking Group have admitted they received 41,874 complaints about their insurance products in the first six months of the year. The majority of the complaints were about mis-sold Payment Protection Insurance (PPI).
36,121 of the complaints about insurance to the Lloyds group, related to insurance products sold by the HBOS division. 68 per cent of the complaints to the HBOS division, which includes the Halifax, Bank of Scotland and Intelligent Finance brands, were upheld, suggesting a significant problem with its insurance products.
In the figures released yesterday, Lloyds revealed it had received 288,717 overall complaints in the first half of the year, equivalent to a shocking 1,850 each working day.
The number of complaints received relate to all of the brands in the Lloyds Banking Group, which include the aforementioned HBOS division brands as well as Lloyds TSB and Cheltenham and Gloucester.
Lloyds TSB received the highest number of complaints for any of the brands in the group, with 103,686 complaints made about the bank’s services across the six months.
The number of complaints made to the Lloyds Group were described by consumer group, Which? as ‘disappointing’.
A Lloyds Banking Group spokeswoman said: “Our relationship with our customers is at the heart of our business and we take all feedback very seriously.
Like every organisation we know there are areas where we can improve and we’re working with our customers to do just that.”
The spokeswoman added that the number of complaints should be seen in context, as the group has more than 30 million customers.
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PPI Complaints Set To Increase In 2010/11
PPI complaints look set to rise in 2010/11.
The Financial Ombudsman Service anticipates complaints about Payment Protection Insurance (PPI) will continue to rise for the period 2010/11, after there were 13,520 new complaints in the first quarter alone.
These figures were published today in Ombudsman News.
For the period 2009/10, the Financial Ombudsman Service received a total of 49,196 complaints about PPI. If PPI complaints continue at a steady pace, then total complaints will reach 54,080 for the period 2010/2011.
According to the figures published in Ombudsman News, 34 per cent of all complaints received by the Financial Ombudsman Service in April, May and June, were about PPI.
The Financial Ombudsman Service has said it will be using Ombudsman News to publish snapshots of its workload on a quarterly basis.
A statement released by the Service said “This should make it easier for everyone to see the numbers and trends as they emerge throughout the year rather than only seeing the figures annually, after the financial year has ended.”
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Competition Commission Discuss Changes To PPI
Competition Commission makes provisional decision on retail PPI remedies.
The independent public body, the Competition Commission has today (29/07/10) released a report consulting on changes to the way retail Payment Protection Insurance (PPI) is sold.
Retail PPI is one specific product in the overall PPI market. Retail PPI relates to protection policies taken out on repayments for goods bought from home catalogues.
The Competition Commission is looking to clamp down on the way retail PPI is sold. The document published today puts forward a number of proposals for retail PPI that aim to provide clearer information to customers on the cost of retail PPI cover and the rights they have.
Proposals for retail PPI published in the report include:
- an obligation to offer PPI separately from merchandise cover if both are offered as a bundled product
- an obligation to provide information about the cost of PPI and ‘key messages’ in marketing materials
- an obligation to remind all active customers of their cancellation rights and of key messages on an annual basis
- a prohibition on the sale of single-premium PPI policies and on charges which have a similar economic effect
- an obligation to provide customers who have spent more than £50 on retail PPI premiums in the preceding 12 months with a written annual review of PPI costs
The Competition Commission is now inviting comments on its proposals for retail PPI before publishing the final verdict for the entire PPI market in September.
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PPI No Longer To Be Sold By Lloyds
Lloyds ends sale of PPI.
The Lloyds Banking Group has announced it will no longer sell Payment Protection Insurance (PPI) on all of its loans, credit cards and mortgage deals.
A spokeswoman for Lloyds said ending the sale of PPI is due to increased regulation on this type of insurance.
PPI has been the subject of long running criticism due to the way it has been sold. The sale of PPI policies are now being restricted by the Financial Services Authority (FSA) and the Competition Commission.
Lloyds is the first bank in the UK to make the decision to stop selling PPI policies. The Lloyds group has said this decision will extend to all of its brands including Halifax, Bank of Scotland and Cheltenham & Gloucester.
Instead of selling PPI cover, if customers are interested in taking out an insurance policy, Lloyds will offer them a British Bankers Association (BBA) advisory leaflet.
Martin Lewis from consumer website moneysavingexpert.com was among those happy about the decision, he had to say:
“This insurance, which has been scandalously mis-sold for years leaving many consumers in misery, is estimated to be worth up to £5bn a year for the industry
It can provide useful protection to people if they are sick or lose their jobs as it covers their repayments, but people should go to competitive standalone insurers rather than banks.
That’s because they sell it at four or five times over the odds, often without checking suitability, meaning many have been duped into paying a hidden £1,000 extra on policies that are worthless for them.”
Which? chief executive, Peter Vicary-Smith echoed his views. “Lloyds decision to stop selling PPI is a huge victory for consumers. Hopefully other banks will follow suit and we’ll finally see the back of this poor protection product” he said.
Experts predict Lloyds decision to stop selling PPI will cause many more High Street banks to follow suit.
Lloyds has said existing customers who have taken out policies or those in the process of doing so, will not be affected.
Have you been mis-sold PPI? We can think smarter and claim back your mis-sold PPI payments. Apply online to find out more, you could be owed thousands of pounds.
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FSA Fines PPI Broker
Payment Protection Insurance broker fined by FSA.
The Financial Services Authority (FSA) has today (09/07/10) fined David Head, director of Essex based mortgage and insurance broker network, FT Compliance Services Limited for Payment Protection Insurance (PPI) failings.
The FSA fined David Head, £10,500 for failing to properly supervise insurance brokers who had close links with a firm previously disciplined by the FSA the mis-sale of PPI.
David Head was responsible for insuring FT Compliance Services and its appointed representatives complied with FSA regulation. Head however failed to put in place systems and controls to ensure the appointed representatives made suitable recommendations, exposing customers to the risk of purchasing unsuitable PPI.
Investigation by the FSA found that in cases where single premium PPI was sold:
- Appointed representatives were not properly considering customers eligibility for PPI before making a recommendation
- Customers were not asked about medical conditions or any existing insurance cover that could make PPI unsuitable for them
- Customers weren’t being told they could buy PPI from other providers which would be more suitable for their needs
Margaret Cole, the FSA’s director of enforcement and financial crime said: “As a director of a network, Head was personally responsible for ensuring that the appointed representatives were properly supervised and he failed to do so. His failure is particularly disappointing given that he was on notice that two of the appointed representatives had links with a person previously disciplined by the FSA for PPI failings. There is a serious responsibility attached to being an FSA approved person and Head’s fine demonstrates that we will not tolerate failure to deliver on that responsibility.”
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UK Based Call Centre, Human Voices, No Bugbears
“Bank customers hung up about foreign call centres” reported an article in the Daily Express last week (Thursday July 1st 2010).
The Daily Express article reports on a poll conducted by consumer analysts, Mintel. Overseas call centres, automated switchboards and not being able to speak to the same member of staff twice, Mintel found were customers biggest bugbears when dealing with financial institutions.
At iSmart we are different; we have a dedicated team of telephone support staff dealing with mis-sold Payment Protection Insurance (PPI). Our telephone support network is based at our headquarters in Wellingborough, in the UK, not outsourced to a foreign country.
According to the article in the Daily Express, customers are not just frustrated with foreign call centres because of the language problems they may encounter but because staff based overseas don’t have a good enough grasp of the financial system in the UK and often struggle with unconventional requests.
Call iSmart and you won’t be expected to converse with an automated voice or have to press numerous buttons before you hear a human voice, you will find yourself talking to a trained specialist as soon as the telephone is answered. As well as being UK based, our telephone advisors are constantly receiving up-to-date training, have an excellent knowledge of the UK financial system and PPI.
According to Mintel, 29% of people are infuriated by staff trying to sell additional products during a call; this is something we can promise our staff will never do. Our staff are dedicated to reclaiming your mis-sold PPI payments.
Have you been mis-sold Payment Protection Insurance? If yes, iSmart is a financial institution with a difference, we can think smarter and offer you the best possible solution.
Find out more here or talk to one of our dedicated specialist telephone advisors on 0800 0433 025
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Repay Your Mortgage With PPI
Saving Money While Repaying your Mortgage
The Mortgage finance market (with all financial products and issues like PPI, PPI Claims and Missold PPI) in the USA is apparently on a very critical stage. The effect of this is even affecting worldwide economies. However, there are effective means by which outgoing money can be saved. One of which is mortgage refinancing by another lender at a much inferior interest rate or an extended term.
Refinancing means taking advantage of a current mortgage deal whose interest rate has declined. If the interest rate has dropped, so will be the amount which you need to pay every month. But, this lucrative solution involves several documentations as well as fees for re-mortgaging a loan, so this is not advisable to be done whenever there is loan rates decline.
Similar to purchasing a PPI with pros (PPI secures your financial state) and cons (unfortunate occurrences of missold PPI) then petitioning for PPI Claims, same goes true in refinancing a mortgage . First, to identify how much a mortgage refinancing is, set this cost against your intended stay in a property and the amount you’ll be able to save for that duration. If this seems complex, look for online resources with mortgage refinance calculators where all you need to do is input all required data (current mortgage interest rate, new mortgage interest rate and term length) then you will instantly be given the amount of possible savings you’ll obtain by changing to the new rate.
PPI Options?
Another possible solution is by extending the loan term, a loan to be paid over a longer period of time will obviously only require lower monthly payments but may also mean a greater amount of total interest. But for those in deep struggle to meet their monthly dues inclusive of bills and PPI payments, this seems viable.
On the whole, the best idea to be able to save money while repaying a mortgage (for loans and PPI) is a substantial drop in the ensuing interest and loan term. Regular overpayments will also reduce your total interest amount to be paid and lessen the time you need to repay the loan.
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What is Payment Protection Insurance (PPI)?
PPI
Payment protection insurance (PPI) is a form of insurance which is used to cover payments towards a loan that a borrower becomes unable to pay back due to either ill-health or unemployment. Payment protection insurance (PPI) can cover most kinds of borrowing and for nearly any amounts which may be needed to be paid back of course this may depend on the type of loan that you have. For example, in the case of a credit card the insurance may only cover the interest or minimum payment due on the card.
For most types of loans and credit, it is highly unlikely that payment protection insurance (PPI) is compulsory, or even advisable despite what an enthusiastic salesperson may imply.
Most PPI Claims companys who provide loans – including home mortgages, hire purchase agreements and credit cards – usally also provide payment protection insurance (PPI). The lender will ask the borrower if they would like any insurance when they take out a loan.
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