Tag Archives: Ppi

Ombudsman Reveals Which Banks Attract Most Complaints

The financial ombudsman has revealed that it is the Bank of Scotland that is the subject of more complaints than any other bank. The first half of this year alone saw the ombudsman deal with over 20,000 complaints relating to the bank.

Barclays and Lloyds were also singled out as banks attracting a lot of complaints from consumers. Together with Bank of Scotland, they were named the three “most-complained about” of all financial firms in 2015 so far. Over the first six months of the year, this trio collectively gave rise to roughly 60,000 new cases for the financial ombudsman. 20,288 of these were in relation to the Bank of Scotland, followed by 20,021 complaints about Barclays and 19,818 surrounding Lloyds Bank.

NatWest attracted special mention for the rapid increase in the number of complaints it gave rise to. The initial six months of 2015 saw complaints relating to NatWest increase by more than half compared to the previous six month period. NatWest gave rise to 11,549 complaints in total in the initial six months of 2015 – a 51% increase on the 7,663 complaints in the latter half of 2014.

In total, the first half of the year saw 173,994 new cases taken on by the Financial Ombudsman Service. Compared to the second half of last year, this is an increase of 8%. Over half of these complaints related to mis-selling of payment protection insurance (PPI) as part of the ongoing multi-billion-pound scandal surrounding widespread use of questionable selling tactics by banks and other lenders. Chief ombudsman Caroline Wayman said: “Complaints about PPI continue to make up over half of our workload. And though the number of new PPI cases has reduced in the first half of this year, the decline has not been as steady or as marked as generally expected.”

However, complaints relating to other financial products are on the rise, jumping by 45% in the first half of this year thanks largely to an influx of new cases relating to packaged bank accounts. These are a kind of current account offered by some banks such as NatWest and Lloyds which offer the account holder a benefit package in exchange for a fee that is usually paid monthly. The kind of benefits on offer often include insurance products such as card protection, travel insurance, or gadget insurance. Concerns have been rising for a couple of years now about the misselling of these products, particularly the misselling of card insurance as a paid extra when the bank already offered card protection to the customer in question as standard, and now complaints about packaged accounts have reached 400 every week.

Lloyds Bank Cutting 9,000 Jobs as Branches Close

Lloyds Banking Group has now confirmed that the next three years will see them close 150 branches, and this will result in the loss of 9,000 jobs. This represents the loss of roughly 10% of the bank’s current workforce.

As well as those high street banks branded under the Lloyds name, the group also owns the Bank of Scotland and Halifax firms.

This is the latest in a series of job cuts made by the major banking group. Since 2008, 43,000 jobs have been cut by Lloyds. This figure excludes those losses that have just been announced, which will take place over the next three years as branches close.

The bank has also dropped its previous pledge to keep “the last branch in town” open. It will now proceed with branch closures without regard to this principle, and has said that it will concentrate on closing down urban branches first.

The group has suffered from a number of fines in recent years for various issues, mistakes and missteps. The PPI scandal, in particular, has hit the Lloyds Banking Group hard. When administration costs of £2.5 billion are included, the PPI scandal has cost the group £11.3 billion to date and a further £900 million has now been set aside to cover future payouts. Recent fines that do not relate to the scandal have totalled over £200 million – a significant figure even if it seems small next to the volume of PPI claims.

Despite these problems, chief executive Antonio Horta-Osorio insists that “the group is performing strongly.” Indeed, over the nine months leading up to 30th September this year, the group reported strong pre-tax profits of £1.61 billion. According to Horta-Osorio, “We have met or exceeded the strategic objectives set out in 2011 and are ready to move on to the next stage in our development.”

The 150 bank closures for the next three years are a net figure, with planned new branches subtracted from the total. The bank actually intends to close 200 of its current branches, but also to open 50 new ones in different locations. With 2,250 branches belonging to the group at present, the overall number of branches owned by the group will have shrunk by roughly 7% once the three-year process has been completed.

A call from the Unite union urges the bank to give a “no compulsory redundancy guarantee.” A spokesman for the union, Rob MacGregor, said “The wallets of top executives at Lloyds should not be getting fat by forcing low paid workers onto the dole.”

PPI claims ‘have yet to peak’

Over £13 billion has been paid out in compensation for mis-sold PPI since 2008. Despite this the Chief executive of the Financial Services Compensation Scheme, Mark Neale warns that these “[claims] will go on for a number of years”. The Financial Services Compensation Scheme often helps customers by getting back their money for them after businesses have become insolvent. Mark Neale has stated, “we will continue to see firms fail with PPI liabilities and it’s too early to say we’ve seen the peak”.

It is predicted that PPI claims will rise by 20% in 2014, which equates to higher than 16,000 claims. Mr Neale went on to say, “I can’t tell you for how long, nor can I tell you when the peak of claims will be, but typically, you have a fairly normal distribution curve over the years”.

PPI was originally provided to customers as a safety measure to help protect them, by covering their loan repayments if the customer became ill or became unemployed.  However, many complaints have arisen from customers who believe they have been mis-sold PPI. As a result, a large amount of money has been paid out to compensate these customers. £20 billion has been earmarked by the Big Four banks, in order to compensate their customers. In May 2001, it was estimated that an average of £735 million a month was being paid out.

Although there does seem to be a decline in new claims currently, there is still approximately £500 million being paid out each month.

The majority of customers claimed through the Financial Ombudsman. Mr Neale said, “the Ombudsman service has seen a fall in new claims it’s receiving. Sooner or later that will happen to us, but it’s too soon to say [exactly when] that’s going to be”.

According to the head of the UK’s financial compensation authority,  the financial sector in Britain will continue to see claims for PPI from customers who have been mis-sold to,  and it is clear that the situation has not peaked and that there are many more claims  to arrive and therefore more payouts to be made.

Finding the Right Solution for Effective PPI Claims

The whole payment protection insurance debacle created by Britain’s banks and lenders is an ongoing issue – namely because even though thousands of people are justifiably due compensation for their mis-sold PPI policy, many are struggling to receive the recompense they are due. Banks have been caught deliberately trying to delay claims, persuade customers they are not valid, and training staff to find ways of deterring and not compensating whenever possible.

Although many people are choosing to pursue their claim for PPI compensation on their own, it is for the above reason that many are turning to professional claims handers for help.

Why You should Get the Help of an Expert for PPI Claims?

When you look at the PPI scam, you will realize that the lending companies or the banks involved will not give out the money owed to you just like that. They will first contest your claim and most probably, you will have to go through legal proceedings before you get your PPI refund. And standing against a big financial company whether it is a bank or a money lending institution is an ill-advised move.

Finding an Expert

In the UK, there are many companies, like the PPI Claims Advice Line, which handle PPI complaints. You can browse online and find some of the best experts who can help you succeed. The problem with the PPI claim agencies is that the numerous numbers present make it difficult for you to choose the right one. There are many ways in which you can choose an appropriate agency.

  • You can shop around and look for the best possible service offered by the experts.
  • The review websites give an approximate idea about the services and their advantage from which you can make a choice.
  • There are many forums online that also deal with the claims. You can get objective as well as unfiltered information about the experts.

Make sure you research completely on the professional service you are going to approach for PPI help. Go for a company that is popular and well-known – they are more likely to be reputable and have more experience. Look into their track record and how many successful cases they have dealt with earlier. When you are satisfied with the results, you can approach the company for helping you with your PPI claim.

PPI Claiming: Reasons to Make a Claim

From January to June this year, the number of PPI claims have reached 2.2 million, and it now has 500,000 successful claims according to the Financial Ombudsman. The FOS also indicates that it is receiving at least 1,500 claims a day from customers and reputable claims management companies such as www.PPIClaimco.org. However, the banks are slowing down the process by continuously hassling and inconveniencing their customers with delaying tactics.

If you don’t think that you need to make a claim given that you have to face the hassle of slow service and 1,500 claims a day including yours, there are other reasons you should make a claim. It is important that you check the time you applied for your loan, mortgage or credit card. If you can recall that you were not employed during that time or you had a pre-existing medical condition, all your insurances are already invalid.

PPI can only provide for customers who have a good employment and health record and cannot provide for anybody who purchased the insurance being unemployed and having a medical condition. Also, those who were retired and purchased the insurance are automatically ineligible.

You actually get back £2750 on average for a mis sold PPI. As it is sold to almost any loan, mortgage or credit card through the mis selling methods of financial advisers, you might have one on each financing you have now. Possibly, you might also have purchased the insurance thinking it was a requirement or a way to boost your finances.

You’ve actually lost tens of thousands of pounds for mis sold PPI. It is important that you seek the help of claims management companies in ensuring that you make successful payment protection insurance claims as soon as possible.

 

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PPI Claim Back: What You Need To Know

This year is the biggest year for PPI claims given the big improvements that authorities made for the faster and easier processing of PPI claims. From January to June, 2.2 million claims have been properly filed by customers themselves, but still, banks continue to delay and confuse customers through their own tactics. The Financial Ombudsman reports that it is currently receiving at least 1,500 claims a day and they have reached their 500,00th successful claim.

Seeing all the numbers, it is indeed easy to file a PPI claim and get back your full repayments for one or two claims, but surely, you will need professional help when dealing with multiple financing.

Claims management companies were always the first to help customers, but banks have shot them down along with the Financial Services Authority for “clogging” the PPI claims process channels with bogus claims. Claims management companies allow customers to have a specialist work on their claim and do all the work for them while the FSA called on banks to invite customers to make a claim.

It is correct to say that CMCs never meant any harm and they provided their service under a no win no fee basis. This means that you don’t get to pay them if they don’t deliver their work. Most claimants paid their CMCs because they did a good job on the claim.

If you’re to make multiple claims, consider working with CMCs such as InterestRateSwapsClaim.co.uk regardless of what banks state about claims management companies. Natalie Ceeney, the chief ombudsman of the FOS, stated that it is not the fault of customers and CMCs, but mostly the fault of banks that the PPI crisis is facing difficulty today. CMCs are the representation of customers willing to make a claim for an insurance policy they can’t know if mis sold or not.

 

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The First Signs of PPI Mis Selling

While many have blamed banking incentive systems for the mis selling of PPI on almost every loan, mortgage and credit card in the UK, the main solution to the problem is if customers can become as vigilant as they are with their financial advisers. Customers need to watch out for “bonus chasers”, financial advisers who only merit customers with high rated products to increase their personal commission. Here are a few ways to know if you’re being ripped off and tips how to avoid it.

1. Your Actual Needs

If you’re getting financing, you know what you need it for and how much you need to spend. You depend on financial advisers to help you make your monthly repayments more flexible for your budget. However, if they’re telling you that you’ll need additional loans that are secured to lower your rates or an insurance policy to ensure that you have some time to financially recover as it is a high-risk and unsecured loan, assess the situation carefully first.

2. Your Financial Stature

Always make it a point to review your financial status before you purchase anything that your financial adviser recommends to you. If you find that you have a good and stable economic situation, then proceed to reviewing if you really need the insurance product. If not, carefully review and explain to your financial adviser your particular financial situation in depth. Many people making payment protection insurance claims today are victims of trusting their financial advisers and lacking knowledge about their own personal assets.

3. Know More About Your Financial Adviser

Not all financial advisers are trustworthy. It all depends on how they earn their money. Commission-based financial advisers are well-known “bonus chasers”, who would risk a fair deal with customers just to earn more from their commissions. A fixed-rate financial advisers would practice fair dealing with customers and pay more heed to smaller details. However, ensuring that the financial adviser is never commission based is top priority to know if you’re making a fair deal.

Martin Wheatley Calls for Extensive Reforms in Banking Incentives for PPI Claims

Martin Wheatley calls forward reforms and new banking incentives systems as they play a huge factor in the mis selling of payment protection insurance or PPI. Financial advisers, brokers and bank representatives have mis sold PPI on the context of earning more profit through the incentives system, which fueled the “greedy” attitude of professionals deviating from their true, professional advice.

Financial Services Authority Managing Director Wheatley claims that the incentives system is based on a profitable bonuses system, which enable financial advisers to earn larger cuts from more expensive products. The bonuses motivate many to disregard customer need and instead force them to purchase products that they don’t necessarily need or may over-fund the current situation. PPI is mostly included with these products.

PPI or payment protection insurance is designed to cover loan repayments when customers become sick or have an accident. Disabled to provide income, the PPI pays for the loan to ensure no outstanding debt exists for customers. But because of the exclusions in the policy unknown to most customers, the insurance policy became useless to many customers.

Customers actually paid thousands to tens of thousands of pounds for the insurance policy prescribed or concealed by the financial adviser as part of the financial package. This made the product one of the greatest financial scandals in the United Kingdom.

Banks such as Lloyds, Barclays and HSBC have provisioned a £9 million compensation package for the entire United Kingdom. To date, half the amount has been given back to customers.

Claims handling companies such as www.PPIClaimCo.org continue their efforts to help customers get back the money they deserve. Customers are advised to seek professional help from claims experts before filing their own claim to ensure their success.

PPI Claims: Evidences to Help Your Claim

A remaining 10.8 billion UK citizens are urged to file a claim for mis sold PPI. PPI or payment protection insurance is an effective insurance policy, but because of the unfair sales methods of bank representatives, insurance brokers and other commission-based financial advisers, PPI has become a big problem for the entire United Kingdom.

To make a PPI claim, you’ll need to consider the following details to ensure your success. First, you must know how you are mis sold PPI and how you are ineligible for the insurance policy. In this way, you can finally consult with legal experts and know your consumer rights, which can help make your claim successful.

PPI requires that customers are initially employed, within the claiming age and have an excellent health condition. If not, they are not eligible for the insurance policy. If you posses medical and employment records along with your birth certificate, using copies of these to prove that before the date of purchase you were unemployed or self employed, not within the claiming age and had a pre-existing medical condition will be effective for your claims.

Proving that you are mis sold PPI will need you to assess how your bank representative, insurance broker or any financial adviser sold you the insurance policy. You’ll need to assess the details they explained to you. If you claim that you’ve trusted the judgment of your financial adviser, you are mis sold PPI. Try to find out if your insurance broker or financial adviser worked on a commission-basis; to earn commission, they have the priority to sell you the highest-priced insurance product they have, and proving they work on commission can increase the likelihood of proving this point.

To avoid any legalities that might lead to counter-claims against you, be sure to consult with a claims expert such as http://www.ppiclaimsco.org. Most claims handling companies offer a free consultation with their claims experts. It is advised that you work with them to ensure the success of your PPI claim