February 11th, 2013
Britain industry heavyweight Barclays last week pledged £600 million to the continually increasing PPI compensation package. Experts estimate the package to be at £13 billion in total with Lloyds, HSBC, RBS, Barclays and other banks who mis sold PPI contributing to the compensation package early this year.
Barclays provisioned the additional amount because it was slowly running out of compensation for successful claimants and is contending with its million-pound fine imposed by the US and UK regulators concerning the Libor scandal. Currently, Barclays has contributed more than £3 billion for compensating customers mis sold PPI.
Lloyds is currently the biggest contributor to the compensation package with £5.3 billion followed by Barclays. RBS currently has £2.3 billion and HSBC has contributed £1.3 billion for mis sold PPI.
Experts and financial analysts foresee that the compensation package can rise up to £25 billion this year making it the most expensive financial scandal in the United Kingdom. The British Banking Association proposed a deadline to the Financial Services Authority, which the latter refused to consider with great concern over consumer rights.
The banking industry made PPI a central tenet of profit generation during the UK “insurance boom”, where experts estimate that 3.2 million customers were mis sold at least one or two payment protection insurance claims.
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Tags: barclays, mis sold PPI, news, payment protection insurance, ppi, PPI claims | No Comments
January 22nd, 2013
Experts see that payment protection insurance is the biggest financial scandal the United Kingdom has faced since the pensions scandal but all UK citizens have the right to file a PPI claim to claim their repayments. However, claimants need to be extra careful when processing their PPI claims ; most PPI claims are rejected by banks even if they are valid and if the Financial Ombudsman can’t help you, you are wasting precious time. Here are the common mistakes that most claimants make with their claims.
1. Not Everyone Has a Problem With It
Some customers want to make a claim for their payment protection insurance policy not knowing if they are or are not eligible for the insurance at all. In all cases, virtually everyone in the UK with a loan, mortgage or credit card were mis sold PPI, but there is a slim chance that you are eligible for the insurance. It is advised that you look through the terms and conditions of the contract and if it applies to you.
2. Filing In the Wrong Channels
Some people file their PPI claims directly to the Financial Ombudsman, which is a proper channel, however, experts advise that claimants claim directly from the bank first. It would be faster if the bank actually verifies the claim’s validity and details first before filing with the Financial Ombudsman. Even if banks reject even valid claims and 7 out of 10 claims coming in the FOS are valid, it would be best to alert them that you’ve made your claim and were rejected even if it was valid.
3. Missing Some Requirements
A PPI claims form is an important part of your claim and this should be the first thing that you fulfil before making a claim. Banks can easily reject a simple letter of claiming complete with evidences, but an FOS claims form with a serial number banks cannot easily ignore. If you pass your PPI claim form to the banks first before the FOS, you have a great chance of success.
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Tags: claim, Finance, insurance, ppi claim, PPI claims, ppi compensation claim | No Comments
October 15th, 2012
Financial problems aren’t new to any country, business and individual but they come and go. The United Kingdom, the home of the banking industries worldwide, are now having problems of their own with regards to financial practices. Decades-old financial systems are now showing signs of breakdown and incurring consumer wrath. Here are a few of the UK’s biggest financial problems to date.
1. The PPI Problem
If you’re from the UK and you don’t know about PPI reclaim, then better click that link provided. PPI has become notorious throughout the United Kingdom because of the manner it was mis sold by financial advisers, who were chasing after huge bonuses in selling the insurances. After the High Court of the country decided in favor of customers for repaying all the customers who can’t make a claim for the insurance, the numbers from 2011 surged 150% to 2.2 million in six months in 2012. The UK Consumer Group Which? CEO Peter Vicary-Smith was astounded, stating that it is “the biggest financialscandal in the United Kingdom”.
2. Libor Rates
Libor, or the London InterBank Offered Rate, has become controversial this year as it was found that some high street banks, such as Barclays and RBS, have been found to rig the rates for their trader’s personal purposes. Libor is actually the guideline of every bank in the world as it determines the amount of money banks can borrow from each other. The exchange rate’s market amounts to trillions of pounds, which makes it quite one of the most expensive financial scandals to date.
3. 2007-2009 Depression
The United Kingdom itself fell from its economic pedestal and was slumped during 2007 and 2009. Taxpayer money bailed out many of the high street banks of the United Kingdom. The Financial Services Authority of the United Kingdom stated that it “reacted as it should”, but wasn’t able to perform pre-crisis management properly. The money involved were millions of pounds. Makes you think how did the UK manage to still host the Olympics and the Paralympics this year.
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July 23rd, 2012
Consumer group Which? recently announced their success in having banks and PPI providers allow customers to reclaim PPI repayments directly from the bank’s or provider’s establishments through a correspondence letter. Efforts to simplify the PPI claims process is further accelerated by the Financial Services Authority (FSA) calling on all banks to contact customers potentially mis sold PPI as there are 10.8 million UK citizens who have not yet made their claims.
Customers initially purchased PPI as per the advice of their financial advisers. Commission-based financial advisers, such as insurance brokers, bank representatives and the like, usually mislead customers to purchase more insurances they don’t actually need. In the case of PPI, customers were ineligible for the insurance’s requirements. PPI requires customers to be healthy and employed upon purchase and for a set period of time before they can receive their benefits.
The simplified PPI claims process was not as simple as it was in the previous years. PPI claims were instantly rejected by banks. The complaints from customers urged the FSA to establish new claims guidelines to help customers. Banks legally challenged the guidelines in 2010, which they conceded in 2011 as court favor was won by the FSA. The new claism guidelines, added with the success of Which? in their efforts to make a new simplified claiming process, ensures that all UK citizens will earn their rightful compensation.
Nowadays, it might be easier to make a claim, but experts warn that banks might take advantage of the situation. Banks might not consider all legal details of the claim and might only provide a lump-sum repayment for customers. It is highly advised that customers visit www.ppiclaimsco.org.uk to help them make a better claim that will guarantee they will receive all the repayments they deserve.
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Tags: claim back PPI, Finance, mis sold PPI, PPI claims, ppi reclaim, PPI refunds, reclaiming PPI | No Comments