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Don’t Fall For The PPI Scam!

May 1st, 2010

Banks brought out Payment Protection Insurance to cover a consumer’s repayments in the event they lost the ability. However recently, it has been publicised that banks and lenders are exploiting the product through questionable loopholes. It has been sold to people who are uninformed, have not been quoted the cost or want it but don’t know they are ineligible. Most banks cunningly tag on PPI to any loan or credit and bank are pressured with bonus incentives to sell as much as possible.

Theoretically, PPI is a great item for consumers, particularly in view of the rising rate of unemployment in the UK where people are being made redundant regularly. Ideally, a short spell of unemployment shouldn’t hamper your ability to repay a mortgage, but the reality is quite the opposite; lenders will avoid paying out at all costs, often claiming that an individual is not able to take advantage of the system based on some technicality.

The worst of the con is that you will most likely not be able to ever use the insurance in the event of an emergency, for example; if you are over 65, employed or otherwise, you could not claim PPI because you are over the age of retirement. If you have a previously documented medical condition, no matter how small, you would not be eligible for the insurance as you will be considered a high risk customer and as you are more likely take leave on medical grounds. If you are self employed, you are considered a high risk customer, so you will not be entitled to PPI. But in any of these circumstances, banks will have no problem adding it on to a service with no intention of paying if required.

The PPI can take up a significant portion of your repayments, to put it in perspective, if your PPI was 30% of your monthly repayments and for 10 years you had been paying a 250,000/25 year mortgage, with interest this could add up to over 3000 to which you are entitled to reclaim.

There are countless cases of lenders mis-selling PPI just like this and if you are one of them, you are legally entitled to a full refund. Since a bank will most likely dismiss your claim no matter how many times you enquire, it may be easier to enlist a legal professional to do it for you. Doing this can save you all the legwork and give your claim much more authority, most agencies work on a no-win-no-fee basis so you will not be out of pocket. After a watchdog ruling in 2009 lenders are now obliged to correctly sell PPI to customers on the premises that they are not overpriced, customers can chose to opt out at any time and they are fully covered.

There are many loan protection reclaim experts out there to help you claim back your PPI, contact Donns LLP for the best advice


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Will A Business Loan Affect My Personal Credit Rating?

April 26th, 2010

When looking to build a business, a large majority of entrepreneurs will need a business loan, and these are a great way to get your business idea off the ground if you don’t have a lump sum sitting around.

There are a few different types of business loan, such as term loans, short term loans and equipment financing, and the type you go for depends on factors such as the amount you need to borrow, when you think you’ll be able to pay it back and what you actually need the money for.

A particular concern that many small business entrepreneurs raise, other than whether they will actually be approved for the loan, is whether applying for a business loan will impact on their own or their partner or spouses personal credit rating. It’s understandable as even though we expect our businesses to do well, there are factors beyond our control and so it is sensible to look after our private affairs well.

One recommended way to ensure your business credit is viewed separately from your personal credit is to make sure your business is registered completely separately. If you make sure your business is registered for its own Tax ID with the IRS, has a separate bank account and is registered at an address other than your home address, it is viewed separately and can begin to build its own credit rating.

For a brand new business the bank or other lender will often take your personal credit into account, as they have no business credit score to use, and so in this case a business loan may affect your personal credit score and can lower it slightly.

In cases of an existing business it is more likely that you will be qualified for a loan by the lender on the basis of the business’ credit rating.

With business loans there is no definitive answer as a range of factors relating to individual cases varies from case to case, but as a guide loans for a new business will usually affect your personal rating, whereas for existing business this is less likely.

If you are looking for the best business debt help then visit The Business Debt Advisor for useful advice forbusinesses in debt.


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Was My PPI Ever Going To Pay Out?

April 19th, 2010

If, in the last decade you have bought a personal loan, credit or any other form of financial product it is almost certain that, unless you confirmed otherwise, you were sold some form of payment protection insurance from your lender. The idea of PPI is to act as a back up if you lose your ability to repay your debt by finding yourself in difficult circumstances such as injured or unemployed. But lenders have found a series of loopholes and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold.

Many people are, by default, ineligible for PPI but have still been paying for it, if you are over 65, you are not able to make use of PPI because you would be above the age of retirement, even if still employed. Anyone who has paid for PPI over this age is legally entitled to a full refund.

You will be considered a high risk individual if you have a historical medical condition and the chances are you would not be offered the insurance as you are more likely to take time off work on medical grounds. As you can guess, the banks will be more than happy to sell PPI to you even with a medical record in their hand and you have no chance of using the cover.

If you are self employed, regardless of your income, you are technically considered a higher financial risk customer someone employed full time, so you will not be entitled to PPI. However, Banks have no problem adding it on to a service with no intention of paying out if it is needed.

Thousands of people in the UK have been miss-sold PPI just like this and if you are one of them, you are legally entitled to a full refund as the government has cracked down on this activity. You may have to chase the banks for this and it is sometimes easier to enlist a legal professional to do it for you. Most consumers who have needed to claim their PPI have reportedly had to wait months before your paperwork is even looked at and in most circumstances lenders will put of payments where possible.

There are many solicitors that can handle your PPI claims as due to government legislation it is easier than ever to claim back the money you paid for loan protection.


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Am I Able To Claim My PPI Payments Back?

April 18th, 2010

If you have taken out a mortgage, loan or credit, it is likely that your lender sold you payment protection insurance. PPI is designed to help customers repay debt should they find themselves in difficult circumstances such as becoming unemployed or getting injured, however, the lenders found a loophole and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold. If you have paid for PPI, whether you tried to use it or not, you may be entitled to claim this money back. What you may not be aware of is why you could be eligible to claim and why the banks could face a huge wave of payouts

The common misconception is that everyone is eligible for PPI but this is not the case. If you are older than 65, the age of retirement, you would never be entitled to claim PPI as you are likely not in full time employment. If you are self employed you are technically considered a financial risk and no PPI policy would offer to cover you ability to make repayments. If you have a historical medical condition you will be unlikely to be able to get PPI cover as you are more likely to be forced off work. Despite this, banks are more than happy to sell PPI to everyone knowing full well it will never cover them if needed.

Banks and lenders have offered products with full knowledge of the situation, something which financial watchdogs have frowned upon very much. Many of the UKs high street lenders have been forced to offer refunds to their customers but many have adopted a ‘don’t ask – don’t get’ policy that means the consumer has to go on the hunt for their money either alone or with legal assistance.

The first step to claim back your PPI is to send your bank a letter requesting a full refund. The bank will reply with a long winded ‘no’ to which you will need to duplicate your first letter and in addition declare your intent to pursue legal action and support from the financial ombudsman. They will most likely respond with a variety of answers ultimately dismissing your claim, albeit wrongfully, due to your lack of authority. The key is persistence and it will significantly help your chances if you do get the ombudsman involved. Ultimately if all else fails, enlist professional help.

It is often hassle free to use a legal agency to help you claim back your PPI as they are experienced and will do all of the legwork for you. This will be much more effective than pursuing the matter yourself and will most likely end in success. Many solicitors are no win no fee so you won’t lose out by claiming with them and it’s the best way of hitting back at the evil banking giants!

There are many companies that offer or specialise in PPI claims and they are fully capable of taking control of everything you need for your PPI claim

categories: loan,PPI,insurance,bank,mortgage,payment protection insurance,lawyers,soliciters,claims,refund,repayment,lawsuit,sue,finance


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Brown Will Force Expense Scandal MPs To Pay Back Legal Aid

April 17th, 2010

Three MPs who refused to pay back their false claims are at the heart of the expenses scandal, now facing court; they plan to defend themselves using legal aid at the taxpayer’s expense after their initial appeal for parliamentary immunity was refused. This move was condemned by Prime Minister Gordon Brown who declared they will have to pay back the costs.

Political commentators have noted it as a move by Brown to be seen to have a firm stance against expenses fraud in the lead up to the general election, but some legal experts have noted that there may be issues as it is a legal right to aid when defending oneself in court.

60,000 was reportedly stolen by the MPs through false mortgage applications, rent claims and service invoices. But the cost of the prosecution will far exceed that figure, at the expense of the taxpayer the price of preparing their defence is likely to run into six figures even without the cost of the prosecution. There is further risk of the MPs having the case thrown out the Supreme Court which could send the cost even higher.

Justice secretary Jack Straw said that the government was in the process of enabling legal aid to be means-tested although they would not be able to implement them soon enough for the case of the MPs. Brown argued that the law has changed and although these changes will not take affect until June, it is just cause for the MPs to pay back the money.

Analysts have estimated the cost of the case to be in the region of 3million and the investigation has so far cost Scotland Yard over 500,000. Trials will begin at Southwark Crown Court in London on May 27th. A spokesman for the court has confirmed that the MPs were granted an application for legal aid with which they hired high priced lawyers that cost hundreds of pounds an hour. If found guilty, the MPs could face up to seven years in prison for stealing taxpayers money.

If you are looking to claim back PPI you could be eligible for a large sum, most people don’t realise they are eligible for a loan protection claim


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Does Liquidation Spell The End For My Business

March 22nd, 2010

If a company is finding it difficult to cope under the weight of outstanding debts or have taken a hit from the economic recession the director/directors may conclude that the best course of action is to close the business. Referred to as a Creditor’s Voluntary Liquidation, it essentially involves the creditors agreeing to liquidate the assets of the business and take a share to reduce their losses.

An insolvency practitioner will be appointed to facilitate the liquidation and make sure the assets of the company are valued at the best price and then sold to the highest bidder. At this point there is nothing to stop a director of the original business starting up a new business and bidding for some or all of the existing assets. Essentially this allows all the directors of the business to found a new company and continue trading without the old company’s debt.

This is an option that can work quite well for some businesses but before considering this option, the directors of a company must be certain that they will avoid allegations of wrongful trading by the liquidator of the original business. If the practices of the directors are called into question they may face legal action and could acquire some of the old company’s debts.

There is no guarantee that when attempting to purchase the assets of a liquidated company that the liquidator won’t sell them to an alternate bidder. In order to avoid this scenario it is possible to agree a ‘pre pack liquidation’ process, also known as ‘Pheonixing’. This involves a predetermined deal with the liquidator before the liquidation process.

This method of liquidation is often considered a quick-fix solution to evade debt it will not be considered by insolvency practitioners unless the business is guaranteed to fail. If a company does fail, the creditors will lose out anyway and the majority of businesses will try and avoid further loss of jobs and trading. This is an ideal solution to a business that is stable but has fallen on hard times due to circumstances outside its control.

If you are looking for the best business liquidation advice then visit The-Business-Debt-Advisor for useful business debt help.


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The PPI Con

March 18th, 2010

Consumers should feel secure that their Payment Protection Insurance will cover their debt repayments if something unexpected happens they are covered for, but more and more people are feeling like it is one big con. It has been sold to people who are uninformed borrowers who can’t afford it and even people who want it but don’t know they are ineligible.

Most banks cunningly tag on PPI to any loan or credit and bank employees are often forced to sell useless policies in order to keep their jobs. The theory of PPI is great for borrowers, particularly in the recent economic hard times, where people are losing their jobs left right and centre, it should mean that 3 months unemployed doesn’t mean going hungry because of mortgage repayments. But the reality is quite the opposite; there have been almost no cases where PPI has actually helped someone struggling to make repayments.

Luckily, lenders who have illegally sold PPI can be held accountable by the general consumer. There are thousands of lawyers who focus on financial law and some even specify in PPI reclaiming.

Most consumers have no idea of the conditions in which the sale of PPI can be considered illegal, if you were unemployed, self-employed or simply over 65, your PPI payments were void and you can reclaim all the money. If the terms of payment, interest and cancellation were not explained to you and if you were told you had to buy PPI from your lender, ask for it back!

Although claiming back your PPI is your own responsibility, the Financial Services Authority and the Competition Commission have taken a stance against the dodgy tactics of the industry. They are even slapping fines on any organisation deemed to have broken laws with PPI selling.

After a watchdog ruling in 2009 companies are now required to correctly sell PPI to customers ensuring they are not overpriced, customers can chose to opt out at any time and they are fully covered.

If you know you have been miss sold PPI, then see why Dons LLP can help you with your PPI claim.

categories: Banks,PPI,payment protection insurance,claim,claims,scam,reclaim,lawyers,mortgage,loan,repayment,bank,credit


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PPI Victims To Be Refunded Over 4bn

March 17th, 2010

It is estimated that over 4bn to customers who were fooled into paying for Payment Protection Insurance on a loan, mortgage or credit could be paid by banks and insurance companies. Experts previously estimated that customer who attempted to reclaim the payments could cost banks up to 1.2bn only but this new number includes the additional amount of customers who the banks will be forced to give refunds to.

A huge number of overpriced policies were sold to customers who had no hope of claiming if they needed to. Policies were sold to pensioners, the self-employed and those with long term medical conditions who, by definition, were ineligible for cover.

An estimate by the Financial Service Authority shows insurance brokers may have to pay up to 450m and the rest being paid by a range of PPI providers such as banks. The typical amount refundable to people who purchased individual policies is 2000 which has caused many consumers to enquire.

The FSA has already begun to make examples of leading high street banks by fining them as well as forcing them to offer refunds to all of the eligible customers. Leading insurance broker ‘The Swinton Group’ were fined 770,000 for serious failings and agreed to offer a full refund to over 350,000 customers while Alliance & Leicester were fined 7m.

The future sale of policies will be regulated and controlled in a move which is strongly opposed by finance giants. The FSA intends to put a stop to companies pressuring customers into buying useless policies. Adam Phillips, Chairman for the Financial Services Consumer Panel, says “for too long banks have regarded PPI as an easy product to sell and make money without considering whether it is really right for the customer

If you think you are entitled to a PPI claim, then visit Dons LLP for the best PPI claims lawyers.


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Am I Eligible For An IVA?

March 3rd, 2010

For people looking to steer clear of bankruptcy, an Individual Voluntary Arrangement (IVA) is a substitute; it is an agreement with the creditors of an individual looking to maintain paying their debts but, due to a change in their financial situation, can no longer make the initially agreed repayments.

The individual’s circumstances are taken into account to make the agreement flexible and are based on a mixture of capital, income and other payments. When proposed, creditors will make a decision via a vote which must see over 75% agreement for an IVA to go ahead.

Although not mutually exclusive, an IVA can be used as an alternative to bankruptcy. An individual can apply for an IVA which would require approval of a proposed IVA and a Court annulment of the bankruptcy order if they have filed for and been made bankrupt.

The advantages and disadvantages of an IVA are dependant on the circumstances of the individual debtor, professional advice is usually sought to decide upon the best option. An IVA will not automatically restrict the debtor from obtaining credit but a proposal usually will.

Unlike with bankruptcy, an individual will not have to reveal anything about an IVA, but some lenders may ask. An IVA will not be viewed in the same light as bankruptcy by creditors as it shows a dedication to repayment, however the existence of an IVA in the first place generally suggests poor credit on behalf of the debtor and both will stay on the individual’s credit file for 6 years.

Once a creditor has agreed on an IVA proposal they are bound by the decision and cannot take any enforcement action to recover the debt. Unlike bankruptcy, an IVA proposal will often exclude the property of a debtor or in some cases propose a re-mortgage or off some income based contributions in light of the debtor’s equitable interest in the property.

Are you struggling to afford you debt repayments, then visit The Debt Advisor to see if you could qualify for anIndividual Voluntary Agreement.


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Banks Make A Killing On Hidden PPI Sales Each Year

February 25th, 2010

When credit consumers take out a new financial service such as credit, a loan or new mortgage they are also offered Payment Protection Insurance which protects them if they experience difficulties in paying for the loan by means of unemployment, injury etc.

Some consumers choose to purchase this product and Banks don’t have to offer PPI and they can allow a customer to select it without advising them on whether that particular product is appropriate for them, like a lifejacket that won’t keep you afloat if the ship sinks.

Banks can exploit PPI in a few ways and the most common is simply allowing the customer to select PPI, simply by ticking a box and this releases the bank from the responsibility to correctly sell a customer the right product. If that customer happens to be unlucky enough to need the PPI, the chances are they will not be eligible for the product they have paid for.

The cover they buy could insure them for the wrong value of their financial service and in most instances if the unforeseen does happen, they are not eligible for the insurance. This has left thousands of customers in financial ruin when not being able to pay back a loan after an accident or cover their mortgage when they have been made redundant.

A second method is much worse, by means of signing a contract a customer can be unknowingly accepting to pay for PPI when buying a financial service; this is likely to be complexly written into the small print thus avoiding any legal indiscretion.

This kind of scamming has accounted for almost 1bn profit for the UK banks in the last year and with the number of unemployed remaining high this figure is likely to increase. It has reportedly affected over 8000 families in the UK in 2009. Many families are seeking compensation to claim back their PPI payments.

Want to find out more about PPI Claims, then visit Dons LLP site on how to choose the best Mis Sold Payment Protection Insurance for your needs.


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