28/06/2010 by Bradders.

With the amount of ppi claims the policy sellers have been handling over the last few years one would think the processes could only get better and quicker. Unfortunately, like most thing in life it doesn’t always go to plan or turn out like you would expect. Mis sold ppi is indeed one of those areas where the whole procedure seems to be like walking through treacle. Obviously, where money is concerned no-one likes having to hand it over but in some instances extreme measures are being put in place. These measures in my opinion are a cynical ploy to slow down the whole process with the intent of encouraging a claimant to give up the claim up as a bad job. 

Whilst this may be expected from some of the smaller brokers, or perhaps car dealerships and double glazing companies it’s amazing how many of the big lenders are adopting this stance. The Financial Ombudsman Service is an independent adjudicator that looks after the public’s interests when it comes to mis sold ppi policies but it cannot get involved in the intricacies of the banks complaint handling. To this end the banks are left alone to lead the complainants a merry dance on the complaints procedure. Although the process may look clumsy to the uninitiated on closer inspection it’s a very well thought out sophisticated system of being ‘helpfully unhelpful’. 

These sophisticated systems are being developed on a regular basis and first started out as not replying to correspondence. Considering the banks have up to 8 weeks to resolve this complaint several weeks may pass without receiving an acknowledgment. When an enquiry about this is made the banks state they never received a complaint to acknowledge in the first place. This happened four times with one particular high street bank. It was only after informing them that the fourth complaint pack had been sent by registered post and we had a signature that they acknowledged its existence. This approach although effective was about as subtle as a house brick on the back of the head. New methods had to be implemented and the huge corporations have a steady supply of staff to concoct these measures. So one of the next methods was to acknowledge the mis sold ppi complaint but not give a name as the reference for the complaint. They also did not give the reference that was on the complaint letter but only put their own reference which was meaningless without the former. Then to make the task a little harder they only give the name of the department and not a name of a staff member.  

Then some banks hit on the idea of not giving any phone number on the correspondence, again making the process a lot more drawn out. Other banks gave 0845 numbers which transferred to an Indian call centre where staff with heavy accents inform you that they can only deal with the account holder not a third party. With other banks they decided on the ‘all our lines are busy’ voice message with the end result of the phone never being answered even after 30 minutes of holding. 

Another favourite ruse is with the letter of authority. The refusal to accept this can take many forms but a few examples are as follows.  

The never received it is very popular but can realistically only be used a number of times. A more popular excuse is the ‘it has to be an original’ for us to accept it. Sometimes this is used in conjunction with the never received it as the original gets lost and the copy of the original that you retained is not acceptable as it’s a ‘copy’. Due to the popularity of this with some banks it’s always advisable to get as many ‘original’ letters of authority as is physically possible. 

With some banks this led to the flat denial route of ‘we don’t deal with 3^rd parties’ even with an LOA. This is frowned upon by the FOS and is very rarely used these days. The ‘internal’ questionnaire is one that is being adopted by a number of banks currently which basically asks for the same information that they have already been supplied. With a lot of clients loathe to fill in yet more paperwork this can seriously slow down a lot of claims. Even when this is completed they sometimes also challenge the signature and ask for it to be authenticated. Again adding many extra weeks to the complaint as the Omdudsman likes to see the banks given a fair crack at the complaint 

So the war of attrition goes on and a mountain of paperwork builds up and a lot of mis sold ppi policies never get paid out

Posted in PPI | 1 Comment »

26/06/2010 by Bradders.

A lot of people question if they have been mis sold ppi but the only people who truly know are the staff at the Financial Ombudsman Service who judge on the banks sales processes. However I have drawn up a brief guide that should at least point you in the right direction but should not be treated as a statement of absolute fact. 

If you were suffering from a medical condition at the time of the sale and it was more than probable that you would need to make a claim regarding this, then missold ppi. 

If you were retired, self employed a student or working less than 16 hours a week, again mis sold ppi 

You were employed on a contractual basis or self employed, yes, missold ppi 

You had a discussion with the sales person about payment protection insurance but the terms and conditions were never discussed, missold ppi  

You asked for a loan or mortgage but were pressured into taking this insurance, again, mis sold ppi. 

You discover by chance that you have this insurance but were not told at the time of the sale, missold ppi. 

If you have an inkling for any reason that you may have been missold a ppi policy the best advice is to check it out, you never know. 

Posted in PPI | 1 Comment »

26/06/2010 by Bradders.

Over a few drinks the other night, as a change from the highs and low’s of the World Cup, a colleague and I got chatting about the ppi market. A number of things were discussed such as how big the actual market was in terms of people who were mis sold ppi. There are  countless estimates but no-one actually knows the exact figure. We then discussed what the average claim was in terms of the value of the policy and it’s generally accepted that the figure is around £2,000.This means there are a lot of policies that are less than this but there are also a substantial amount of claims that are a lot more.  

We then decided to compare notes on our own personal knowledge of the claims that we have dealt with. My colleague went first and said he had dealt with several claims above £10,000 and the highest to date was just under £15,500.This was a successful claim and the recipient was eternally grateful as it helped him overcome a difficult financial period in his life.

I knew immediately what the biggest claim I had ever dealt with was. It was attached to a £100k loan and the ppi attached to this was £25,000.When one considers that this insurance only lasts for 5 years that’s a massive £5000 a year just for the insurance and with interest considerably more! Somewhat taken aback my colleague asked if it was a successful claim. I had to say yes and no, due to the fact that the Omdudsman had ruled in favour but the company decided to call it a day and go into administration. The case is ongoing and is with the FSCS so there will be one very happy client when the mess is sorted out. 

So, what is the biggest mis sold ppi policy ever? I suppose like the size of the ppi market no one truly knows for sure. I have heard of a case that was around £35,000 and another that was £50,000 although I think the latter could have been exaggerated. However if anyone has been missold this insurance whether it was £1,000 or £50,000 they should do their utmost to claim this back

Posted in PPI | 1 Comment »

21/06/2010 by Bradders.

The savour of many a person taking out finance and then finding themselves in the unfortunate position of being unable to repay their financial obligations. Payment protection insurance isn’t a bad thing. In fact, its very good, sold in the right way to the right people. Payment Protection Insurance (PPI) is commonly sold alongside financial products such as mortgages, loans, cards and store finance. It is meant to give the purchaser peace of mind should they lose their job or suffer from ill health and not be able to meet their repayments to the company lending them the money. A great idea? Of course, but here’s the catch. Payment Protection Insurance is classified as a big risk. It can add up to 40% to the cost of your original finance, and also earns the seller big commissions, and I mean big !

So like everything in life that is good, it is also open to abuse. Therefore, it is no surprise to hear that in the last 5 years The Financial Ombudsman Service has been swamped with people who have been mis sold ppi. For many consumers it was a case of being told they had to have PPI in order to get the finance they needed. The sales person “prayed” on them. For others it was a case of being pressured into taking out PPI with a store card or when buying furniture.  When times are good and finance is freely available even for those with bad credit the temptation for financial sales staff to offer such products must have been too good to be true.Now times are tougher and people are scrutinising their accounts, it has become apparent that many people have been mis sold ppi for many reasons.

Not only those listed above but also some have been sold PPI who have had pre-existing medical conditions that the PPI policy would not even cover. Even if they made a claim the insurance company would turn it down.If you have a finance agreement of any kind that was taken out  in the last 6 years it is worth checking the payment statements, you may not even know you have PPI running alongside your normal monthly repayments. If you have and you think you have been mis sold ppi you should take immediate action.You now have the choice to approach the lender directly or use a claims management company. The choice is yours. Going it alone is free but remember the banks and lenders employ teams of highly paid legal staff whose job it is to deflect and ultimately reject your claim. PPI cases can be very complex and you need to have the time and knowledge to fight them. Alternatively, you can use a claims management company who has the legal backing to fight the policy seller for you. They may take a percentage of the payout in commission but this will be well worth it and better than nothing. 

It is estimated that the average payout for mis sold ppi is over £2000. This is your money and something you never expected to see. Even if you pay a claims management company their fee you will still get a lot of money back. Some claims management companies charge up to 35% commission on successful claims and others want upfront fees before they even consider your claim.

If you think you have been mis sold ppi choose a company that only works on a no win no fee basis and charges a lower rate. Do some research on the internet and make sure you get a reputable company who will treat you fairly and not rip you off.Remember PPI can be a good thing but you need to balance this with your situation and needs. The salesperson should have taken this into consideration at the time they sold you the PPI policy. You should have been explained the policy terms and conditions and exclusions. If you feel you have been mis sold PPI then take action today.Do not leave your commission in the hands of the financial salesmen. You do have tthe recourse to claim your money back if you take a little amount of time to make a claim and fill in the necessary forms. It doesn’t take long to get back £2000 of your hard earned cash.

Posted in PPI | No Comments »

21/06/2010 by Bradders.

The misselling of payment protection insurance has rumbled on for several years. However, I’m still amazed that with the amount of press reports and media coverage that I have seen more people are not aware of this rip off insurance. I was speaking to a friend the other day and he was able to shed a little light on this for me. He said the reason that I was surprised that more people had not heard about missold ppi was the fact that I was involved in the industry.

He said technology was a prime example of this with something like the mobile phone. When you see someone who is struggling to use a ‘simple’ application like a text one forgets how frustrating it was when you used a mobile phone for the first time. As time progressed the use of a mobile became easier and you could not understand how you managed without one before. 

When you put this into context its hard to believe that someone who is now aware that they have been missold ppi are not putting forward a claim to get their money back This got me thinking about a related area where people would be incensed if they thought they were being ripped off and would definitely complain big time. Let’s think about this, payment protection insurance was sold alongside a loan even when people did not want it, could not use it or didn’t even know they had it. So to draw comparisons I thought I would come up with examples and consider if people would complain. 

One of the striking things about ppi is the fact that the cover lasts for five years even if your loan lasts 10, 15 or even 25 years. So would you complain if you booked a two week holiday was told you had to take travel insurance that costs around 20% of the value of the holiday but it only covers you for the first three days? What about if the insurance will not cover you for sunburn if you have ever been treated for sunburn in the past? How would you feel when you discovered many years later that the holiday you booked could have been a lot cheaper except for the fact that you had been sold expensive travel insurance that you didn’t even know you had. Perhaps you would also be upset if you discovered when making a claim that you and your wife were covered but the kids weren’t as they were too young to insure. Or how about when you tried to claim it was only the bags that were in your personal possession that were covered and not the suitcases that were loaded on to the plane or left in the hotel room. 

If anyone was to hear of constraints like this there would be a queue a mile long around the travel agents so it’s still surprising to me why more people are not complaining about missold ppi. 

Posted in Uncategorized | No Comments »

06/06/2010 by Bradders.

For the past two years PPI complaints have been steadily increasing in the
UK as thousands of people discover they have been conned into additional payments with unwanted payment protection insurance tacked onto their loans without their full understanding or in many instances knowledge.Payment protection insurance is placed on a loan, mortgage, store card or credit card by the seller as a means to protect the borrower against default on the finance agreement.

This is protection if there is a change in the borrowers circumstances like the loss of a job, an accident or long term illness.However, some loan companies realised how easy it was for them to add PPI to a debtors account without receiving their permission and thousands of borrowers are discovering that they have unwittingly purchased a PPI policy. A high percentage of credit card companies took this tack and its only now that the British public are waking up to this fact..Now missold ppi is attracting huge media attention consumers are now realising after looking at their statements that they are paying for payment protection insurance, but did not ask for it. These people have a case for a ppi complaint and should be entitled to receive a full refund of the moneys paid. In most instances a six year time limit applies from the time the agreement is signed but with credit cards being ongoing you can go back much further with a claim.

There are a number of reasons for a missale and one or more may apply to you. If the borrower was under the age of 18 or over the age of 65; if their current work status, at the time of the loan and payment protection insurance policy addition was in question such as knowing they were about to be fired or if they were a temporary or seasonal worker, or if their work was under 16 hours a week. Other conditions that could be considered for a case against wrongful doing on the part of the PPI policy people would be the health of the consumer like a pre-existing condition.

Yet the most frequently noted reason for a consumer receiving PPI insurance on a loan or credit is because they were either told they could not obtain the loan without the PPI or that they were never told that PPI was attached to the agreement.Many people are reluctant to make a ppi claim because they fear this may affect their credit scores. The good news is there is absolutely nothing to fear regarding this and they will get back all the premiums they have paid with associated and in some cases statutory interest .

Posted in PPI | 1 Comment »

03/06/2010 by Bradders.

Consumers who were mis-sold ppi now have longer to complain to the Financial Ombudsman Service if their bank refuses to refund their money.

Up until this month, a complainant who had unsuccessfully complained to the policy seller had up to six months from the final response letter to take their case to the Financial Ombudsman Service. However, the Financial Services Authority (FSA) has announced a temporary extension.Consumers who received ‘final response letters’ from providers rejecting their PPI complaints between 28 November 2009 and 28 April 2010 will have an extra five months to take their cases to the Financial Ombudsman Service.

 The extension is set to end on 27 October 2010.The FSA says the temporary rule change has been introduced to ensure that consumers who have recently complained about PPI don’t run out of time while trying to achieve a resolution.The regulator is currently working to find a long-term solution to the problems in the PPI market, and make sure consumers are treated consistently and fairly when purchasing, or complaining about, payment protection insurance.PPI is a form of insurance that is designed to protect repayments on credit cards, loans and mortgages in the event a borrower loses their job or is unable to work. However, it has attracted massive criticism from consumer groups and the media. It is very expensive for what it is and in many instances deemed to be useless depending on the borrower’s circumstances. It has also been a huge cash cow for many of the leading banks and Barclays have been particularly vociferous in defending its meritsVera Cottrell of consumer champion Which said: ‘Of the two million people we reckon have been missold PPI, only a minority ever complain.

It’s outrageous that so many consumers are still waiting for fair redress, and we hope that this decision encourages more of them to persist. Our advice to people is: don’t let  the banks fob you off”

Posted in Uncategorized | No Comments »