PPI in 2017
*In this blog I’ll overview 2 key areas in which the banks are still failing consumers.
1) Underpayment of successful claims, and wrongly rejected claims.
2) Claims for Deceased people.
1) Underpaid Successful Claims
Check your successful claim!
First of all, though – get your new claim processed in the first place!
That’s right, if you haven’t done this yet, please prioritise it!
There are a couple of upsides here to doing a new claim now, in 2017.
The obvious one.
If you haven’t yet taken the time to claim in the first place, any potential refund will almost certainly have increased in value (due to the time having passed since claims first started to be made, years ago).
The surprising one.
But also, the actual calculations that many banks used have been alleged to have been inadequate, wrong, dodgy.
Yes, you read that correctly.
But I’ll repeat it, because it’s worthwhile repeating.
It’s been reported consistently that the banks often did not use the correct calculations!
So get your new claim done – now – as it’s a great time to claim.
OK, so what’s this about underpaid claims?
Yep, it’s reported consistently – claims have been underpaid on a massive scale.
After all the banks’ rhetoric across the last 10 years or so of the PPI scandal, it’s out there.
Google it and check for yourself.
It’s rife. Why take my word for it?
OK, I checked – so what could this mean for me?
It means that your PPI claims which have been successful in the past may have been significantly underpaid.
Meaning – you didn’t get your own money back.
Let’s look at some of the findings.
- BBC, ‘You & Yours’ radio programme – underpayment of refunds.
BBC researchers (BBC radio, ‘You & Yours) found (2016) that the incorrect calculation of PPI compensation is a common practice among banks and credit providers.The researchers alleged that it was deliberate and is saving banks millions of pounds at customer ́s expense.This was supported with evidence of miscalculated PPI refunds paid to customers of Lloyds, Barclays, MBNA and Capital One.
All four investigated were guilty of the incorrect calculation of PPI compensation.
- The MBNA example – less than half.
The radio program also included an example of a miscalculation in which an MBNA customer had received a PPI refund of £5,800, but when his charges and compound interest were also included, should have received a refund in excess of £13,000.
- And here’s what The Ombudsman said about underpayments.
Caroline Wayman – the Principle Financial Services Ombudsman – also commented on the findings of the BBC ́s researchers.She said that, under the rules for calculating PPI compensation, “If a fee is the result of the mis-sold PPI, it should be given back, and if it’s not included in the amount [of the compensation], that would be a mistake.”She added “Any widespread failure to carry out proper calculations would most definitely be disappointing”.
- Record fines for Clydesdale Bank and Yorkshire Bank, ‘handling errors’.
The Financial Conduct Authority (FCA) slapped both Clydesdale Bank and its sister bank Yorkshire Bank, with a combined £20.6 million fine, after the firm was found guilty of a number of “serious” failings.It was the largest fine of its kind to that date, for PPI complaints handling errors made in a period lasting more than 2 years.
- Lloyds, and the ‘legal loophole’ reports on BBC Radio 4.
Lloyds alone is reported to be providing almost £10bn for refunds.But in a Radio 4 programme – and in other reports – around March 2014, the bank was accused of cutting payments by tens of millions of pounds in mis-sold PPI using an obscure loophole that is allowed by the financial regulator.It was alleged that customers who had bought single-premium PPI policies – where the entire cost of the insurance was charged upfront and added to the loan – were not getting all of their money back.
Instead, it said, the bank was deducting the cost of a cheaper, regular premium policy from the refund, on the basis that the customer would have bought one of them instead.
This is allowed under “alternative redress” rules outlined by the FCA, as long as the client would have been able to make a claim.
- Lloyds, again – fined for ‘massive delays’.
In February 2013 Lloyds Banking Group was fined £4.3 million for massive delays in paying back mis-sold PPI.
- Co-op – ‘unfairly putting complaints on hold’.
In January 2013 The Co-op was fined by the regulator for unfairly putting complaints on hold.
- FCA – 2.5million complaints unfairly rejected or underpaid.
And In August 2014, the FCA revealed that bank and credit card providers would reopen two and a half million old PPI complaints after unfairly rejecting or underpaying victims.So there you go then – it’s now 2017 and the banks have still been failing their victims.There are many, many more reports covering many, many more banks and financial institutions.
As we move through 2017 what are the chances of new reports, new evidence, of failings in the way banks supposedly ‘refund’ YOUR money?
One last thing – how much is YOUR time worth?
Just like Columbo used to say, “One last thing”.
But humour me for a moment.
Let’s take a random theoretical refund of £3000. Or £6000. Or £9000. Or £12’000.
Divide the hourly rate at which you are currently paid (I’ll use £10 per hour as an example).
Look at that figure.
For my example, on £3000, it equates around 2 MONTHS of working pay based on a 37.5hr week.
Of your money.
On the £12’000 figure, the same hourly rate equates to around 8 MONTHS of pay!
So tell me again that you’re not motivated to get YOUR money back….
2) Claiming for Deceased family members and loved ones.
This is an area, somewhat understandably, that is often overlooked. But claiming for mis-sold PPI (and Investments) after a loved one has passed away is possible.
First of all, though, let’s pause and be human about this subject.
We know dealing with the estate of a deceased relative is upsetting, stressful, life-altering.
A PPI claim will not even be 20 th on anybody’s list at this time.
However…at some point it’s a great idea to give attention to this.
Why would any of us allow the bank to keep a loved one’s money? And I daresay, the wishes of most of those who leave us would be in line with that thinking.
They’d almost certainly rather their family or close ones have it – definitely not a bank!
At www.maplefinancial.co.uk we will be there to help you throughout the process. It’s an area in which we are experienced. We can provide you with the support and knowledge to help.
What happens in these cases?
- In most cases, a claim will become part of the estate for the deceased and distributed in line with any other assets.
- To proceed, you will need to have a copy of the deceased person’s will, their death certificate and the Grant of Probate if one has been issued.
- We don’t need any paperwork from their loans or credit cards but an account number is helpful.
- There is no cost to you for us to check if PPI was added. The only time you will be charged is when you receive a successful PPI refund.
- Don’t worry if you can’t find any paperwork that shows PPI as we can check this for you.
If the deceased had a loan, credit card or mortgage in the last 15 years you should be checking whether they had PPI on it.
From our experience, many people are shocked to find out they had PPI when they didn’t think so.
Remember, one way it was mis-sold was it was added even though it was made clear that it wasn’t wanted…
Deceased claims process
The claims process is so simple.
- All you need to do is provide us with some information.
- We complete a claim pack for you.
- You simply read and return that claim pack in our pre-paid envelope.
- Our experienced claims handlers will process your claim, keeping you informed along the way.
And that’s that. You shouldn’t need to do anything else.