It seems all we hear about lately is the PPI scandal, everywhere we look and everywhere we go we have PPI thrust into our faces and companies calling us to make a claim for it but having said that PPI has helped to repay a lot of people who may have been miss sold it in the first place so all in all its been very beneficial for most.
However for those who still remain a little confused by it all, (because let’s face it the PPI scandal can be quite complex!) here is the PPI Scandal explained to help those who are unsure of how it begun and who it may have effected! Ultimately it’s then down to you to decide whether or not you feel it has affected you personally and whether or not you think it’s worth making a claim to receive it back!
What is PPI?
Firstly PPI is payment protection which may have been sold to customers after taking out a loans, mortgages or credit cards. It began back in the 1990’s and its sole purpose was to ensure that the buyers could make repayments to their borrowings if they were to become ill or lose their jobs during the repayment process!
How did this become a scandal?
Critics say that the banks and lenders suddenly began to take advantage of these sales purely based on the fact that profits margins were very beneficial. Although it may seem a wise thing to do its been revealed lately that it’s been significantly unnecessary due to the fact that only around 15% of the income gained form PPI was ever returned to the lenders, In other words the banks have been the big winners here, whilst the lenders have no doubt lost out considerably!
How does it affect me?
If you have taken out a loan, mortgage, or credit card in the last 10 years, chances are you may have been miss-sold PPI. Successful claimants fall into some of the following categories;
- You may have been out of work at the time of purchase
- The bank may not have disclosed it to you or provided you with the relevant paperwork
- You were never asked about your employment status at all
- you may never have needed the PPI at all because had no intention of making a claim or part claim
If you fall into any of the above you could receive a claim for PPI although it’s still worth asking if you don’t because people have been successful on many other grounds too!
How to get the compensation back?
The compensation is an ongoing battle at the moment, you can either approach the bank directly or try going through a broker. Brokers may help you to get more of what is owed to you back however they do come at a price.
Is it worth it?
Of course! Many people have received thousands back whereas others only a few hundred, no matter what you get it’s your money and you should at least try and attempt to get it refunded, whether you are successful or not!
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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