PPI: What are the issues with Payment Protection Insurance ?
Due to the competitiveness of the financial industry, lenders are having to reduce their lending rates to attract new and retain existing customers. This is causing a drop in revenue due to lenders having smaller margins on loans, credit cards and mortgages. PPI, although sold as a safeguard for borrowers, may just be seen as a way for lenders to increase their income from selling loans, credit cards and mortgages.
Some PPI policies offered by lenders may be unsuitable to borrowers in certain circumstances. Policies may not be suitable for the self-employed if they only cover redundancy. Some are so full of exceptions and exclusions that borrowers are often unable to make a claim if the worst does happen.
PPI policies sold by credit card companies, banks and lenders can be overly expensive and are sometimes forced upon the borrower as part of the approval process or hidden within the debt repayment schedule. Debts may be increased by up to a third when factoring in PPI payments.
PPI: What is Payment Protection Insurance mis-selling ?
How do I know if I have been mis-sold Payment Protection Insurance ?
The plain fact is that a number of PPI policies sold to protect borrowers from their debt in reality offer no protection at all and are simply a revenue stream for the lender. Borrowers may be unaware they are even taking out PPI as they go through the application process.
Lenders may offer low rates that are only commercially viable to them with the addition of a PPI policy and the may also mis-sell PPI policies with sweeping statements such as 'Will pay off your debt' or 'Will safeguard your family' when in fact the product they are selling may be completely inappropriate to the borrower and offer no such security.
PPI: Can I claim compensation for Payment Protection Insurance mis-selling ?
If you feel that, when you were sold your PPI policy, the salesperson failed to explain exactly what you were purchasing, or you were forced to take out the PPI policy by your lender, you may be able to claim compensation. Also, if you were sold an unsuitable policy while self-employed, unemployed or retired, you may have a case for mis-selling as your circumstances at the time of sale may mean that you cannot claim on the PPI policy in certain circumstances.
ENDOWMENTS: Who can claim compensation ?
If you currently have an endowment policy, or have had one in the past, you could be entitled to compensation. You could still claim even if you have surrendered or switched your policy or converted to a repayment mortgage in the past.
ENDOWMENTS: How do I know if I have a claim ?
The Financial Services Authority (FSA) has reported that millions of endowment policies were potentially mis-sold because of the lack of suitable advice given at the time. If you feel that you were not properly advised about your options or the risks involved in taking out an endowment policy, then you probably have a valid claim.
ENDOWMENTS: Why can't I claim compensation myself ?
The short answer is that you can. However, claiming can be time consuming and you will need the knowledge to tackle the provider yourself; to know what to do if your claim is refused; to know whether an offer of compensation is fair; to go through the appeals process if necessary or to know if your claim could be time barred.
ENDOWMENTS: Who pays me my compensation ?
The company that gave you the initial advice regarding your endowment is responsible for paying your compensation.
ENDOWMENTS: What is the average payout ?
The actual amount paid will depend on individual circumstances and can vary enormously from a few hundred pounds to several thousands of pounds.
ENDOWMENTS: If I have cashed in my endowment policy, can I still claim ?
Generally, the answer is yes, particularly if it was cashed in during the last three years.
BANK CHARGES: How can I have my bank charges refunded when those charges are published in the bank's terms and conditions ?
The charges are unenforceable and can be recovered because they are too high. Just because the banks say they were published and you have agreed to them does not mean they are fair! With our expertise in legal and financial services claims we will challenge the banks' charges on your behalf. We believe we can get your unfair penalty charges refunded.
BANK CHARGES: I have an account, which has been closed for some years now. Can the bank charges I paid still be reclaimed ?
Yes. We can usually reclaim unfair bank charges for up to six years back from when you claim on any account, whether it is open or closed.
BANK CHARGES: How do I know how much I have been overcharged ?
This is the total of the penalties your bank has charged you, less the real cost they incurred. In addition, where you have paid interest on those charges we may be able to recover that as well.
BANK CHARGES: I have already started to claim my charges back from my bank but I am worried that I might have to go to court and represent myself against my bank. Can you still help me now ?
Yes, in most cases as long as you have not served Court papers on your Bank.
BANK CHARGES: Will my bank close my account if I claim back these charges ?
Some banks have taken this stance. However, The Banking Code Standards Board has advised Banks "to ensure that they do not make a disproportionate response to customers claiming back these 'default' fees and treat the customers sympathetically and positively in accordance with the provisions of Banking Code section 14."
The Financial Ombudsman Service has also criticised at least one bank for this practice, but it is unclear whether the banks will comply with this.
As a precautionary measure, we recommend that all claimants open a new bank account that can be used in the event their bank decides to take this negative approach.
We take great effort to establish a professional relationship with all the banks we deal with. Our communication should not provide any cause for substantial break down in your relationship with your bank.
BANK CHARGES: Could I make a claim on my own ?
Yes. There are a number of self-help websites set up to help consumers. Typically, consumers under-calculate what is due to them, as they do not fully appreciate their full entitlements or don’t know how to calculate them.
By using experts, your claim is likely to be substantially higher.
Have you got the time to enter into protracted correspondence with lenders ?
Do you know your full rights ?
Do you know the obligations on the lender ?
If you are offered compensation, would you know whether it was the correct amount or considerably understated ?
STORE / CREDIT CARDS: I have a store card with these charges on. Can you reclaim them as well ?
Yes. We can reclaim wrongly applied charges on any store card or credit card account.
