The Financial Conduct Authority (FCA) released its latest totals on monthly PPI Claim Payouts. July 2013 totals for PPI repayments was £528 million which brings the total of PPI Claims repayments made sine January 2011 to £11.5 billion.
The figures are collected from 26 firms and financial institutions that made up for 96% of all the Payment Protection Insurance complaints from last year.
Monthly PPI Payouts for 2013
Source: 2011 data from 16 rms which collectively had a 92% share of PPI complaints in the rst half of 2011. 2012 data from 24 rms which collectively had a 96% share of all PPI complaints in 2011.
The data reported to the FCA by rms includes ex-gratia payments made to complainants and cases settled at the Financial Ombudsman Service.
The graphs show a signicant increase in redress paid by the rms following the High Court judgment, in April 2011, in favour of the FCA PPI measures.
Since the judgment, all rms should have been dealing with complaint backlogs built up during the legal proceedings, and new complaints received since the ruling
How to claim for Mis-Sold PPI
Step 1: See if you have a policy
Check the paperwork for your loan as the cost of PPI may be included on your statements.
If it is not listed as ‘payment protection insurance’ it may be called loan protection, credit insurance, loan repayment insurance, ASU (accident, sickness and unemployment) insurance, account cover or payment cover.
If you are still not sure whether you have PPI ask the firm or bank that sold you a loan, mortgage, credit card or other similar product.
Step 2: Check if PPI was mis-sold
Some reasons why you may have been mis-sold PPI include:
- you were pressured into taking out PPI;
- it was not made clear that PPI was optional;
- you were advised to take out PPI but it was not suitable for you;
- you thought buying PPI was a condition, or would increase your chances, of obtaining a loan or other type of credit;
- any significant exclusions were not explained, such as being self-employed or pre-existing medical conditions;
- the policy was added to your loan without your knowledge;
- it was not made clear that you would pay interest on the cost of PPI if it was added to the loan; and
- it was not made clear that the PPI cover would end before the loan or credit was repaid.
Note: There are other reasons why PPI may have been mis-sold. If you are not sure whether your policy was mis-sold you should contact the Financial Ombudsman Service.
Step 3: Make the claim yourself
There are many companies that offer to submit claims for mis-sold PPI, usually known as claim handlers, claims firms or claims management companies (CMCs).
But making a claim for mis-sold PPI is a free, straightforward process that you can do yourself.
If you do decide to use a claim handler you should carefully consider whether to pay an upfront fee before your complaint is submitted, as there is no guarantee it will be successful and you could be left out of pocket.
While the ‘no win, no fee’ approach often advertised might be more appealing than paying money up front, it can mean paying a significant portion of your refund to a claim handler.
PPI claim handlers often keep as much as 30% of a refund, so if you receive a £5,000 refund you would have to pay £1,500 of it to a claim handler.
The Financial Ombudsman Service (FOS) has a free PPI claim form (doc) that you can use instead. If you make a claim yourself, you will receive all of any refund you are entitled to. Call the FOS on 0800 023 4567 if you need help filling it in.
Step 4: Complain to your lender
If you think your PPI was mis-sold or is not suitable to your circumstances you should first complain to the firm or bank that sold you the policy.
It is best to write to them providing as much information as you can about the policy you are complaining about and be clear about why you think the policy was mis-sold.
You can use one of the many free template letters that are available, or the FOS’s free PPI claim form (doc), to ensure you provide the information the firm or bank that sold you PPI need to assess your claim.
The firm or bank has eight weeks to respond, telling you whether your complaint has been successful or why it needs more time to look into it. Some firms will respond just to let you know they have received your complaint, so be sure you have a final response or it has been eight weeks since you complained before you contact the FOS, as in Step 5.
Step 5: Contact the Financial Ombudsman Service
If you do not get a final response from the firm or bank within eight weeks of your complaint, or you are not happy with their decision, the Financial Ombudsman Service (FOS) may be able to help.
You can send the FOS’s free PPI claim form (doc) to them even if you already used it to complain to the firm or bank that sold you PPI. Call the FOS on 0800 023 4567 if you need help filling it in.
It is important that you contact the FOS within six months of receiving a final response from the firm, or the FOS may not be able to deal with your complaint.
The FOS will ask the firm or bank to explain what they think happened and then decide whether to uphold your complaint.
Payment Protection Insurance (PPI) News
Bankers should be charged, says 68% of Midlands residents
A recent survey of East Midlands residents revealed that 7 out of 10 ( 68% ) believe that Bankers should face criminal charges over fraudulenty selling Payment Protection Insurance or PPI.
The survey also goes on to say that 60% of Midlands residents would like to see the Government actually track down people who were mis-sold PPI and start the compensation prceedure before a personal complaint has to be made. 51% also suggested that living relatives of deceased victims of PPI mis-sellling should recieve the money made by the Banks and 25% agreed that in cases where releatives cannot be determined, the compensation should be given to charity.
Consultation over changes to retail PPI selling
Financial services companies are preparing to roll out a replacement for the now discredited payment protection insurance which it is claimed will provide similar benefits to PPI, but will not cost the borrower a penny.
The new product is designed to cover loan repayments if a borrower is unable to work because of an accident, sickness or unemployment.
A credit union for airline employees is the first UK financial services company to offer the product, known as a “payment waiver”, with five more unnamed firms – two mortgage lenders and three personal loan companies – due to launch it in the next few months.
FCA investigates Two Banks for mis handling PPI Claims
The FCA has confirmed that they are investigating two Banks for mis-handling PPI Claims. This comes after a report last week that the Financial Ombudsman (FOS) has seen an increase of PPI complaints being filed with them.
PPI complaints that are rejected by Banks are typically sent to the FOS for review. Our review of this last week pointed out that the FOS found that 8 out of 10 PPI complaints were upheld by the FOS. This has lead to the FCA stepping in to investigate the two main Banks that are rejecting valid PPI claims from customers.
PPI Claims – Leicester, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks in Leicester. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
We will work with you to ensure that you get the correct PPI settlement or refund and any and all fair compensation that may be due to you as a result of PPI mis-selling. We will deal directly with your PPI provider, be it a bank or insurance company and neither we nor our specialist claims team will be fobbed off by them at any stage. If their offer is too low or derogatory and they won’t take us seriously we will challenge them on your behalf.
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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