26/02/2010 by Bradders.

In the latest set of figures released by the Financial Ombudsman a similar pattern is starting to emerge. Like the serial criminals it’s the same old faces turning up for the ID parades year after year. And just like the judges sermon at the end of each case when he says ‘I’m sure I will be seeing a lot more of you in the future’. Like the well worn policeman and the cynical old judge the FOS must now be wondering what steps they need to take to bring these culprits into line    

Once again it’s our friends at the banks that continue to generate a high number of ppi complaints. In the six-month period from July to December 2009, 9,952 new complaints were received against Lloyds TSB, 9,836 against Barclays and 7,349 against Bank of Scotland. The very same sort of numbers were reported by FOS for the first half of the year so nothing changes Breaking down new complaints against the banks by category, FOS revealed that a high percentage related to general insurance.

This includes payment protection insurance (PPI). For Black Horse, a subsidiary of Lloyds, 82% of new complaints fell into this category, for Royal Bank of Scotland (RBS) it was 66% and for Lloyds TSB 49%. The proportion of insurance complaints was 26% for Barclays.   Reporting the number of consumer complaints it upheld in the last six months of 2009, FOS revealed some astonishingly high figures for insurance claims against banks.

For National Westminster the rate was 77%, HSBC and RBS 79%, Lloyds TSB 89%, Northern Rock 92%, Black Horse 94%, Barclays and The Co-operative Bank 96%. For MBNA it was an unbelievable 99%.Commenting on the new figures, David Thomas, interim chief ombudsman, said: ‘The data we have released today clearly shows that some businesses still need to do more to ensure that they deal with their customers’ complaints effectively and fairly – so that consumers do not then need to escalate their dissatisfaction to the ombudsman.Brad Martin of Claimline UK says ‘Yet again the major banks are treating the FOS as a complaints department. Far be it for me to tell the Ombudsman what to do but I still think a £1000 fine should be attached to every case that has been cynically refuted. I believe the banks would then start looking at the ppi complaints a little more positively and save everyone time and trouble www.claimlneuk.co.uk   

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21/02/2010 by Bradders.

At the moment there are literally hundreds of thousands of borrowers who are waking up to the fact that they have a missold ppi policy. They probably remember taking out the policy at the time of the loan and may even remember that at the time they didn’t really want it. They now want to know what they need to do to make a claim against the seller and get their hard earned cash back. 

The first consideration that needs to be made is if they are going to attempt to claim themselves or go to a claims management company. If they decide to use a CMC they could do a lot worse than using Claimline UK a firm that specialises in PPI claims against the major banks through to small double glazing companies. They are registered by the ministry of justice and do not charge any upfront fees. Their success fees are one of the most competitive in the market at 20% and they will reduce this even further for claims of £7,500+.  

For a successful claim the more information that you provide the better. Making a formal ppi complaint has a lot to do with the way the case is presented. Up until recently several of the major banks rejected virtually every case that was put in front of them. Recently this has started to change as many believe the FSA has had a quiet word with them due to the Ombudsman service creaking under the deluge of ppi complaints.

It’s in the complainant’s interest to get the complaint sorted by the firm rather than being referred to the FOS as it can take many, many months to get the case resolved. Clamline
UK will present the case in the most professional manner and tailor each case individually as no two cases are the same. In this way the seller of the policy will have to make a considered judgement based on all the facts and there is more chance of a positive outcome if the case is presented in a way that makes it a valid claim. A lot of claims have been presented in a spurious to such an extent that the MOJ gave a rap on the knuckles to many claims management companies. The Financial Ombudsman has the right to refuse to even look at these cases which means the real loser is the claimant!  

To present the claim n the best lght, Claimline UK recommends the following: 

Produce all the documents provided at the time of the sale. Loan agreement, Key facts information, policy documents. 

Make sure you complete the statement of events form with as much information as possible. What the salesperson said, your employment situation at the time of the sale. Were you being treated for any medical conditions and if so did you explain this at the time?  

Don’t assume that because you have ppi you were automatically missold. State why  you believe you were missold and make sure this also goes on the statement of events. If you felt pressured at the time explain in what context. If you were self employed did you tell the adviser at the time and explain that you required clarification that you were covered. 

Check the policy date and make sure it falls within the last six years. If that time is fast approaching make sure you don’t delay in presenting your ppi complaint 

www.claimlineuk.co.uk

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20/02/2010 by Bradders.

If you, like millions of others have found yourself a victim of ppi msselling hopefully you will have done something about it and made a ppi complaint. Unfortunately in the vast majority of cases the seller will refute your claim and refer you to the Financial Ombudsman Service.However, they will normally only have done this after giving you a 101 reasons why you do not have a valid claim. 

 The main reason for dong this s to demoralise you into believing that you may not have a valid claim and make you question it. In the majority of instances it has the desired effect and a lot of people throw all the paperwork into the back of a drawer and decide to have another look at it some time in the near future. What then happens is days turn into weeks and weeks into months and the paperwork remains in the drawer. The fortunate ones may see an ad for a claims management company that specialises in missold ppi and retrieve the paperwork for the firm to get a ppi refund. The unfortunate ones will either never bother again or notice upon retrieving the paperwork that they are outside of the FOS deadline. In this instance all is not lost as a solicitor can still take up the case although in the majority of instances it will have to be worth their time in both the amount of the claim and the chance of success. 

The worse scenario is if the agreement was taken out over six years ago and the claimant does not have all their agreement documentation. The seller does not have to keep the paperwork over this period so the chance of you getting this is almost nil. When one considers these claims could amount to thousands of pounds in premiums it does not make sense to leave that claim unfinished. If you have neither the time or inclination or perhaps both, a claims company could be the solution. 

Brad Martin of Clamline UK says “A lot of consumer champions suggest the public make the claim themselves rather than use a CMC. In some instances this may be the case but not everyone is prepared to follow it through and there are thousands of people every month missing these deadlines for no other reason than presenting their case. A good CMC will do all this on a no win no fee and in our instance only charge a 20% fee at the end of it. I know I‘d rather 80% of the compensation rather than leaving it sitting in the back of the drawer until the claim is worthless”   

So remember if you have made a ppi complaint and you received a final response letter from the seller you have up to 6 months to complain to the Financial Ombudsman. Unless you can prove exceptional circumstances the Ombudsman will not look at your case. There is also time restrictions of six years after your agreement finished so make sure you also check these dates and act accordingly.  

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18/02/2010 by Bradders.

Anyone who has a ppi policy attached to a credit agreement and feels they may have been missold ppi should check the policy date. There are certain time lines laid down by the Financial Ombudsman Service when it comes to ppi claims. The FOS has concluded that six years is a sufficient time period to make a complaint against a missold ppi policy. Therefore anyone who has been sold a policy several years ago would be advised to check their paperwork and get their claim actioned otherwise they will miss out once the deadlines passed. 

Another consideration is if someone has made a ppi complaint against a policy seller but the complaint was turned down and a final response was issued. The complainant has up top six months from the date of the letter to take the claim to the financial ombudsman. Failure to do so will mean that the FOS will not look at the case unless there is mitigating circumstances i.e. a serious illness where the complainant has been hospitalised. 

If any of the above relates to you then you should seriously think about moving your claim forward sooner rather than later. Many claims are worth thousands of pounds so setting aside an hour or so is well worth the time. If you find that you do not have the time or inclination then using a claims management company s probably the best answer. You need to find a firm that works on a no win, no fee basis and does not charge any up front fees. They should also be regulated by the Ministry of Justice and have a CRM number. 

Brad Martin of claims management company Claimlne UK said” We are now getting a number of cases that are falling outside of the timelines. Obviously if there are mitigating circumstances we are able to push these cases forward but without this our only alternative is to use our legal representatives.Unfortunately, if the claim is low value then this often precludes this avenue. I cannot stress how important it is to adhere to the timeframes to avoid any unnecessary complications”.       

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16/02/2010 by Bradders.

There have been many articles written on payment protection insurance and the self employed but many people out there do not know if it affects them. In the vast majority of instances anyone who is self employed and has this insurance can make a ppi complaint for a claim. 

A lot of policies simply do not cover you if you are self-employed. While some PPI policies do offer cover, one thing you need to bear in mind is that you will not be eligible to claim simply because there is less work around and you are struggling financially.

You really need to check thoroughly with your chosen ppi provider for any exclusions and the type of cover offered for the self-employed. Normally, for a claim to be valid, you will need to show you that because you could not find enough work, you have involuntarily ceased trading. You will also need to show that you have advised the Inland Revenue that you have ceased trading.

You will not be covered for voluntary insolvency.

You should also be aware that should you still have any sort of income coming in, the chances are you will not be eligible to claim.

If you are a contract worker there are a few plans that will offer cover, however, you would be wise to check what the terms and conditions are.

Brad Martin from claims management company Clamline UKsaid: “For anyone who is self employed or a contract worker this type of insurance is not right. I would advise anyone in this situation who has been sold payment protection insurance to make a ppi complaint to get their premiums refunded”.      

Clamline
UK work on a no win no fee basis with a flat 20% success fee.

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16/02/2010 by Bradders.

The Financial Services Compensation Scheme has forecasted an increase in compensation ppi claims for the rest of the financial year and into 2010/11 - which could increase the levies on insurance firms. The prediction comes as part of the FSCS plan and budget, which provides early assumptions about claims and funding needs for the next financial year.Overall, the FSCS expects the volume of claims it receives in traditional areas of its business, such as mortgage endowment and pensions review claims, to decrease.

But the FSCS expects PPI complaints to increase significantly for the rest of 2009/10 and into 2010/11. This means the FSCS will issue even more decisions next year as it completes claims arriving towards the end of this financial year.Loretta Minghella, FSCS Chief Executive, , said: “The FSCS will continue playing a valuable role in promoting consumer confidence in 2010/11 by paying compensation when firms fail.

In the light of recent investment firm failures, we are expecting the costs of investment compensation to rise significantly over the coming months.”In addition, PPI claims will be an important driver of our business next year and will contribute to significant costs estimated at £50.5m in the general insurance intermediation sub-class.”Although the situation is fluid, our current assumption is that around 8,000 PPI claims will come in during the next year. That’s almost double the number we expect this year.In such tough economic times, we recognise that the interim and annual levies will be unwelcome news for firms. We take great care in determining our indicative levies though our primary obligation is to deliver compensation to those entitled to our protection.

Doing so helps to promote consumer confidence, which also benefits the industry.”The FSCS will review its claims and funding assumptions, and then announce interim levies and the initial 2010/11 levy in March.

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15/02/2010 by Bradders.

It would appear that just as people are getting used to the PPI complaints procedure the whole process looks set to take another twist. The number of complaints that the Financial Ombudsman Service s receiving is still heading northwards and we will soon be approaching the 1000 a week mark. As I’ve always maintained they are dong a sterling job but they have been pushed to the limits with the amount of cases that they are currently dealing with. However, there could be a little respite for the FOS but it will hardly do the poor complainant any favours. 

There seems to be a growing pattern amongst the mortgage and loan brokers that seemed to be everywhere at the start of the last decade to close shop. Obviously the lack of money to lend has not helped nor has the inclination not to borrow have done their profit margins much good. Added to this is the growing trend of the consumer to demand monies back from missold ppi or payment protection insurance. 

For years these brokers along with the major financial institutions have been raking in billons of pounds of profit from this expensive and in many instances inadequate insurance. Unfortunately just as the general public can see a way of getting their hard earned cash back the brokers are pulling the plug and saying goodnight
Vienna. If you did use a broker now is a good time to check if the firm that you used is still alive and kicking. You can check this on the FSA website or just contact the company by phone or letter. This is important because if you do have a ppi complaint the claim has to be made against the seller (broker) not the bank (lender). 

In the event of the broker gong into administration you will need to contact the Financial Services Compensation Scheme who will now be the ones who will process your claim. Before any of this can take place you will need to fill out their internal application form to see if you have a case. At the same time they will need to do an audit of the brokerage to see if they are in default i.e are there any funds left in the business  

Unfortunately, this is just adding more complications and stress to the individual who wants to claim back their missold ppi Brad Martin of Claimline UK said ‘What should basically take a little effort and common sense is now turning into a major task for the individual. In cases where this occurs a claims management company can do all the leg work and take the stress off the complainants shoulders. There are some CMC’s who will charge an upfront fee for this but at the moment we are happy to continue working on a no win no fee basis. Even though there is extra work involved we have also decided to maintain the same 20% fee and not increase it as some other companies have decided to do.

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10/02/2010 by Bradders.

Firstly, you must have some form of credit agreement whether this is a loan, mortgage, HP agreement, credit card or store card. If you have any of these there is a fair chance that you may have payment protection insurance attached. This is the overpriced and in many instances useless insurance that the financial institutions have been pushing for many years to boost their already bulging coffers. 

The second step is establishing that you have a policy. In many instances the borrower does not even know they have it especially where credit cards are concerned. People who have had cards for nearly 20 years discover that they have been paying ppi premiums that amount to many thousands of pounds when all the little instalments are added together. 

The third stage is establishing if you were missold ppi in the first place. Not knowing that you have it on your agreement is misselling in itself but there are other reasons that constitute misselling. For example if you have a pre-existing medical condition this would rule you out of being able to claim on the policy. If you were unemployed, self employed or of retirement age is another reason. In general if you were sold a policy with an up front premium this is generally frowned upon as you are in effect taking another loan out and paying interest on this to cover the premiums. In many instances the policy only lasts for the first five years of the loan but you could well be paying interest over the duration of the loan. 

Once the above has been established you now need to decide if you want to make a ppi complaint yourself or take it to a claims management company. There are many claims firms to choose but you should steer clear of any that are not authorised by the Ministry of Justice or ones that try and charge an up front fee. You should only use a firm that works on a no win no fee basis and be mindful that some companies charge fees of up to 30%. As a rule of thumb you should not be paying more than 20% for the services of a reputable CMC 

Finally once you have decided on the claims company that you will use relax in the knowledge that all the slog and effort will be handled on your behalf and all you need to worry about is how you’re going to spend the ppi refund

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09/02/2010 by Bradders.

Payment protection insurance is now becoming a byword for being ripped off. With the amount of media coverage it has been receiving in the financial pages of the national press and coverage on the consumer programmes one would assume that everyone knows about it. Well, if that is the case then one would also assume that everyone with a policy would be beating a path to the banks doors with a ppi complaint. In truth this is not the case and it’s quite bewildering considering the current state of the economy and the very people who took out credit must also be the ones in most need of it. 

If one was to go on a holiday and it was not as it seemed in the travel agency people would be demanding a refund. Likewise if you were sold expensive seats to an event but were not given access to those seats again there would be a cry of foul play. However in many instances that is exactly what we are dealing with when it comes to missold ppi but people do not treat it in the same light. Even more surprising when we are potentially talking about thousands of pounds at stake   

Getting a ppi refund is not as difficult as most people probably imagine but perhaps a little more time consuming. This is where a decent claims management company can lend their skill in assessing on a case by case basis. There should be no upfront fees to pay and a success fee should never be more than 20% if the compensation is awarded. Anyone who has taken any form of credit over the last six years should check their policy documents as it has been known for some finance companies to add t on without the borrower’s knowledge. The credit card companies are also renowned for including this and its a fact that whenever your balance goes up so does the ppi payments! 

Now is the time to check those documents and find out how to claim ppi sooner rather than later 

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09/02/2010 by Bradders.

It’s now probably more unlikely for someone not to have heard about ppi miselling but people still seem to be reticent about making a ppi complaint. Over the years literally millions of policies have been attached to credit agreements and a vast majority were not in the consumer’s best interest. 

Up until quite recently credit was available easily and the majority of people were not always aware of the add ons that the institutions were encouraging their sales staff to sell. Payment protection insurance was one such product that enabled the credit companies to put billions of pounds of profit on to their bottom line. This gravy train came to a juddering halt when the FSA and Competitions Commission deemed the institutions of crossing the line and bordering on fast practice. 

Since this has come to the attention of the media there has been some real horror stories of the extent of this bad practice. There was a case of a 73 year old woman who borrowed money to loan her son and was sold £2.5k worth of ppi.Then there was the couple in late middle age who was granted a £100k with a further £25k loan to purchase their payment protection insurance. Another example was a contract worker from overseas who wasn’t even a
UK resident but was still deemed appropriate by the bank to take out payment protection. 

Now it’s becoming common knowledge that anyone who has a credit agreement in place should check through their paperwork to see if they have this overpriced and in many instances useless insurance. Some people may well discover they have it without realising it as did the self employed carpenter who had paid out over £8k on a credit card for something that never covered him for the obvious reason, redundancy. 

So if you have this insurance and feel you should never have been sold it now’s the time to get a ppi refund.

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