Barclays- The Global Reach of UK Mis-sold PPI

Posted: 21st June 2017 & filed under PPI

Barclays- The Global Reach of UK Mis-sold PPI

It’s recently been reported that Barclays is facing a court case in excess of £1bn for the mis-selling of PPI (Payment Protection Insurance) policies. The alleged claim has been made by a British subsidiary of a US company, which had acquired the business from Barclays 10 years ago.

The law suit has seen PPI’s global reach, with PPI mis-selling makings it’s way to the US.

The alleged lawsuit adds to the anguish of bank provisioning. Nevertheless, those who have been following PPI developments will already be aware that PPI - even on standard superficial analysis - has cost UK banks dearly.

For starters, the recent Financial Conduct Authority data, taken at the end of February 2017, shows that £26.7bn of redress has been paid to the victims from some of the major banks in the UK.

Though it’s been showed that around half of the figure relates to repaid interest, it means that an approximate of £13bn PPI premium has been refunded. But, research also shows that the financial regulator is completely clueless of how much PPI was exactly sold.

However, some analysts believe that the rough figure is £60bn, which suggests that less than a quarter of individuals who may have been mis-sold PPI have bothered to consider whether they have it or not. Worryingly, 75% of people who haven’t yet considered their position could perhaps lose out on the refund if the FCA time proposal continues without any “checks and balances”.

Clearly, different banks have different PPI inheritance issues as proved by the loss provisions assigned by several banks over the past few years. But, as per the FCA complaint data, Barclays has around 160,650 open complaints related to PPI. Putting this into context, Barclays PPI complaints represent 140 complaints in every 1,000 live products.

The Financial Ombudsman Service data shows that they have received around 7,044 complaints in regards to Barclays PPI from 1st July 2016 to 31st December 2016, and in the last 6 months they’ve upheld approximately 61% of Barclays PPI complaints in favor of the complaining customers.

There are individuals who had hoped that we were nearing the end of PPI headlines, such as the proposed PPI deadline- this would shut out lawful claims and cause customers a loss if not claimed. However, such headlines show that it’ll only be an unsuitable guillotine that would close the issue-whether it’s fair to customers or not.

Final Rules and Guidance for PPI complaints

Posted: 17th June 2017 & filed under PPI

The mis-selling of Payment Protection Insurance (PPI) has been the biggest issue of concern for majority the financial firms in the UK. It has caused a huge drain on resources with firms handling over 18 million PPI complaints and paying out over £25 billion in redress since 2011. 

It has even damaged public trust and confidence in some these banks and financial firms. So it was a relief when the Financial Conduct Authority (FCA) published final rules and guidance on the future conduct of such claims. Mainly, it was important to bring this issue to an orderly conclusion by imposing a two year deadline on consumers within which they should make a claim or they would lose on PPI compensation money owed to them.

Why do you think these new rules and guidance are needed?

The Rules and Guidance on handling the PPI complaints were enforced since December 2010. Consumers have been seeking influence from the FCA asking them for more guidance that might help the consumers understand the potential issue. The firms themselves have expressed hesitation with suspicious practices of some Claim Management Companies (CMCs) in pursuing PPI claims. This has resulted in wastage of valuable resources and time on dealing with poorly evidenced and speculative claims.

In 2014, the Supreme Court handed out a noteworthy judgment in Plevin v Paragon Personal Finance Ltd. The judgment stated that even though there are no requirements for the firms to disclose the commission paid to the lender/intermediary, there could be a tipping point where the commissions paid become so large that the non-disclosure would render the lender’s relationship with the consumer unfair under section 140A of Consumer Credit Act 1974. In Mrs. Plevin’s case, the non-disclosure of commission, which was equated, was found to be beyond the tipping point. Her case was forwarded to the Country Court, which would decide what relief (if any) should be granted. This kind of decision led to fears of inconsistency and uncertainty on how the non-disclosure of commission will be handled by the Country’s Courts.

What do the Final Rules and Guidance tell us?

The Final Rule and Guidance provide us with:

  • A new rule that needs consumers to make PPI complaints within two years deadline or they will lose out on their PPI compensation pay out. This rule will come into picture from August 29, 2017 with a deadline of August 29, 2019.
  • FCA will lead a communication campaign to let the people know about the deadline starting from August 29, 2017. The estimated cost of this communication campaign is £42 million, which the FCA will recover by a fee levied on the 18 firms who have been found responsible for most of the PPI complaints. The first half of the fee will be collected by April 30, 2017.
  • These new rules and guidance on handling the PPI complaints will come into force on August 29, 2017.

How do these Final Rules and Guidance differ from previous proposals?

There are four major points to consider:

  • Originally, FCA looked at the non-disclosure issue solely as a non-disclosure of commission. The final round of consultation concluded that “profit share” agreements should be taken into consideration. Also, the non-disclosure of any profit share sums must be taken into account as well as the non-disclosure of commission, both to identify whether any unfair relationship exists.
  • The FCA knows that there are consumers who previously made PPI complaints, which were rejected by the financial lender but they may now be eligible to make further complaints. An estimate of 1.2 million customers fall into this category. This requires the firm to now identify such customers and write to them explaining the final rules and guidance.
  • The originals rules and guidance of handling the PPI complaints was supposed to come into force from March, 2017. This was postponed to August 29, 2017 in the final rules and guidance, giving the firms some extra time to prepare themselves.

 These final rules and guidance will not be applicable to future PPI complaints once the deadline date is exceeded.

Can your bank ask you to return your PPI compensation?

Posted: 16th June 2017 & filed under PPI

Can your bank ask you to return your PPI compensation?

After the mammoth PPI mis-selling scandal amounted to £25 billion in compensation payouts for mis-sold PPI polcies, the customers slowly started realising that they had been wrongly sold the policy. People who were self employed or came into the category of PPI exclusions, completely lost their money. This led to the affected buyers making claims for a refund of their money from banks and other financial institutions. The banks got an overload of tasks dealing with the mis-sold PPI customers and returning their claims after making proper calculations.

However, due to the huge number of people who were supposed to be dealt with, the banks often paid more money to the customers than their actual compensation amount. On realising, they asked the customers to return the extra amount back to the banks. This has shocked the customers as banks have asked for up to £15,000 of money back, that too in some instances after four good years of paying their compensation.

Honest mistake or a New Bank tactic?

However, it is also a matter of suspicion, as this might be a trick by the banks to claw back some of the money they have paid out to the customers as PPI compensation. As the PPI policy was sold in a secretive and scandalous way, it is difficult to ascertain the exact amount of compensation that the mis-sold buyer is supposed to receive. Hence, there may be a possibility that the banks have been taking advantage of this confusion and asking the money back claiming it to be a calculation error.

Till now, almost 12 million mis-sold buyers have been reported of claiming compensation for mis-sold PPI. The banks, however, often cause delays in payments. They give various reasons (or rather excuses) – be it an overload of claims, lack of workforce, time required for double checking the payments and policies or simply technical errors.

How Such Mistakes Can Affect The Customers Even More

Christine and Christopher Smith, a couple from County Durham, faced a huge issue regarding banks claiming back their compensation. They were mis-sold PPI, whose compensation was received in the year 2012, amounting to £14,739. After four years, their bank sent them a letter saying that they were not entitled to this sum of money, and asked them to return it to the bank. Sadly, they had already invested this sum in their business over the course of four years. This shows how people get affected by this act of banks clawing back the compensation. There has also been a case where a man was asked to repay £3,634 out of the £5,704 worth of compensation received.

It is strange how banks can get accurate in their calculations after years of paying compensation to the buyers, but not at the time when they were repaid their claims. They may also face a number of issues while dealing with millions of claims that the PPI buyers make. They also have a big responsibility of making the appropriate calculations of the amount of compensation a buyer is supposed to get after claiming mis-sold PPI. However, there has always been a debate on whether this practice is genuine or a trick. If it is a genuine issue, we should give a benefit of doubt to the banks and appreciate the commendable efforts they make. Nevertheless, if the banks are trying to trick us by clawing back the refund, they are only adding to the manipulative PPI scandal that engulfed a lot of victims.


‘Can I Claim PPI from the 1980’s?’

Posted: 3rd May 2017 & filed under PPI

At our expertise and experience means that we are able to help our customers claim back payments from mis-sold PPI from up to 30-years ago.

Claiming PPI going as far back as the 1980’s is not impossible and it’s not as hard as it might seem. We specialise in aging and difficult PPI claims and we don’t need any original paperwork to begin the claims process, this is because of our standing and experience in the industry.

If, like so many others, you were mis-sold a PPI policy during the ‘80s, then don’t give up – getting what is rightfully owed to you is more than possible. We don’t need any original finance agreements or stacks of paper work to begin a claim.

Banks and finance intuitions had free reign for decades and were making massive profits from the mis-selling of PPI policies. PPI was distributed to people to make sure that they were able to meet their repayments on financial products if they were to ever lose their employment or fall ill. The extent of mis-selling only became public knowledge during the 1990’s and it found that employees at financial institutions were incentivised to push policies onto customers with no regard for whether the customer needed them or not; meaning a good deal of the policies sold were completely useless.

If you believe you were mis-sold PPI in the last 30-years we are able to assist you in claiming what is rightfully owed to you. No documents or even original agreements will be required for us to make a claim, we won’t even need the original policy number.

Contact us today to begin your claim before it’s too late.

Banks are eagerly awaiting the PPI deadline

Posted: 21st February 2017 & filed under PPI

The PPI scandal has been a topic of controversy for the past few years, with many people affected by the massive scandal. It is still consistently the most complained about financial product by far.

However, only 25% of people who are owed a refund for mis-sold PPI are thought to have actually claimed and received their rightfully owed money.  Proposing a deadline would therefore seem to be somewhat premature. However, the prospect of a deadline being put in place is obviously very appealing to banks, who will potentially be saving a large amount of money as they will not have to repay the masses of customers who are owed PPI refunds.

In fact, it has been suggested by the campaign group Payback Time that banks are expecting to save as much as £23 billion in unpaid PPI refunds. This very substantial figure not only explains why banks have been so eager for the deadline to be enforced, but also highlights just how much money is still owed to unsuspecting clients.

Financial experts have also suggested that banks are in a reasonably desperate situation regarding their capital, and the PPI deadline will give them an opportunity to rebuild their assets at an earlier convenience.

With the banking industry having reason to be eager for the deadline to be enforced, as well as the economy to consider, it has been discussed that the deadline will be confirmed this year, and will be enforced in June 2019. To make sure that as many people as possible receive the compensation they deserve before the deadline, an advertising campaign worth £42 million has been organised to be launched for the 2 years preceding the deadline.

If you have reason to believe that you are one of the many people still owed a refund for PPI, it is highly advisable that you should act quickly, given that banks and the financial industry are gearing up for the deadline being confirmed.

It is now more important than ever to check if you are owed a large sum of money. Many people have been refunded thousands of pounds after having paid unknowingly for PPI policies which were not beneficial to them, you could be one of the victims.

All you have to do to get the process started is complete a free check, for which you will only have to provide your name, current address, date of birth and select the relevant lenders that you have previously borrowed from in the form of a loan, credit card or mortgage. Following this, we will be able to send you the pre-filled forms for you to simply add your signature. Don’t worry, we do not need any account numbers. 

With the deadline in sight, don’t delay starting the process, check today to see if you could receive a large PPI refund.

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