I would like to applaud the Telegraph this morning for sifting through, what I like to call “Bank sponsored news”. Of late, we have seen a whole raft of articles slamming PPI Claims and PPI Claims companies or CMC’s.
The simple truth is, PPI was mis sold to consumers, consumers were ripped off, defrauded out of money and have the legitimate right to re claim their hard earned money.
The Telegraphs Article.
Truth is, claim handlers get results
By Paul Farrow, Personal Finance Editor
Many claims management companies are simply trying to cash in. It’s amazing how they can become experts on a subject as soon as they smell a mis-selling scandal. Some openly admit they are trying to make a quick buck.
A few years ago a boss of one such company, which was handling endowment complaints, boasted to me that his business would make him “a very wealthy man”. After all, they were taking a 25pc slice of any compensation they secured for a customer. “We work seven days a week, but we will argue on behalf of a client until we are blue in the face,” he told me.
Claims management companies are easy targets that get it in the neck for exploiting consumers. It wasn’t so long ago that Lloyds TSB was accusing claims management companies of fraud.
Which?, the consumer champion, wants the Government to step in and regulate the whole ruddy lot of them. Yet I’m not convinced they should be berated to such an extent. I’ve received random texts from companies telling me to get in touch to claim my PPI compensation. I’ve even had the odd call. Slightly annoying I’ll admit, but I hardly feel as though I am being exploited.
There is an argument that claims management companies do have a positive role to play. They certainly did during the endowment mis-selling scandal around a decade ago, when many home owners received compensation after their own efforts to get a payout were blackballed by lenders. Hard-nosed tactics by claims handlers certainly got up the backs of lenders whose complaint procedures were found to be wanting – and many home owners soon got their just reward.
And history is repeating itself with PPI (payment protection insurance) policies, which were designed to cover loan and credit card repayments in the event of illness or redundancy.
Only a couple of weeks ago I was talking to a cab driver who had just come back from a fortnight in the Caribbean – even though trade had been dire thanks to the recession – and all because he received PPI compensation that he had no idea that he was entitled to. “I got this call from one of those claims companies and I thought what the hell,” he said. “Sure, they took their fee, but I didn’t even know I was entitled to any compensation so it was like getting free money.”
This makes you wonder about the real reason why banks are miffed with complaint handlers, whose complaints account for almost 70pc of those investigated by the Financial Ombudsman Service (FOS). Without them they would be paying out far less. The banks, the biggest of which have now put a total of £8.8bn aside to cover PPI compensation, are irate that some complaints filed by handlers are bogus, but these are tiny in comparison with those that are bona fide and warrant compensation.
Indeed, the FOS is still taking on 1,500 new complaints about PPI every day, despite assurances from banks that they would ensure those who were mis-sold the insurance would receive compensation promptly. In total the ombudsman said it had now received more than 400,000 complaints about PPI and was ruling in the customer’s favour in seven out of 10 cases.
A spokesman said the FOS was “disappointed” that the banks weren’t doing more to resolve these cases themselves, particularly given the high uphold rate. He makes a good point.
PPI Claims News
PPI Claims : FOS deals with 149% increase in PPI Complaints
The Financial Ombudsman Service has revealed that PPI Claims (payment protection insurance) increased dramatically over the past 6 months to September.
PPI Complaints to Cost the Banks an extra £400m in fees to FOS
Banks in the UK are set to be charges an extra £400m in fees by the Financial Ombudsman service (FOS) for dealing with PPI complaints. The FOS charges a standard fee of £550,00 per complaint regardless of whether the complaint is upheld against the financial insitution or not.
Claiming PPI in IVA, Getting the Facts Right
Whether you have completed your IVA or you are still in your IVA, making a mis-sold PPI claim is still possible. However, there are differences between the two situations. In one situation, you will be able to keep the compensation you receive from a successful claim. In the other situation, this simply is not possible.
Understanding Credit Card PPI
• What Is PPI? PPI stands for Payment Protection Insurance. It is an insurance policy on your credit cards that will make payments for you in the event of unemployment, sickness or injury. These insurance policies have been widely mis-sold, and you may be entitled to a refund.
• What Does Mis-Sold Mean? Mis-sold is interpreted as being sold a policy from the credit issuing company under the guidelines that you to have the insurance to obtain credit, or you were not told that you could obtain this coverage elsewhere for a betterneeded price.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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