Posts Tagged ‘PPI’

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Mis-Sold PPI Claims Dissected

May 23rd, 2010

It has been widespread in the news in recent years regarding the PPI Scandal. PPI (Payment Protection Insurance) has been highlighted due to its mis-use by a number of high-profile financial institutions and they have received heavy fines because of it.

It has been mis-sold in the form of loans and mortgages, both secured and unsecured, hire purchase, car finance and credit cards among others.

Since 2003, it is believed that seven million people have been mis-sold PPI. It in no way should be assumed that all seven million were low or middle income earners trying to make for a more secure future. These are actually the people who have been affected the most.

A part of what makes PPI mis-selling illegal is companies, of which there were many, applying pressure and unreasonable selling tactics which resulted in the Citizens Advice Bureau being involved. The top twelve companies who offered PPI were also found to be engaged in monopolistic practice with very little competition available for the individual to evaluate.

There is now an opportunity for victims of this practice to take the matter to the courts to claim the money that need not have been spent in the first place. There have been tens of thousands of successful cases which have seen these people have their PPI payments returned to them. The average person has seen their bank balance increase by thousands of pounds as a result. It is a straightforward procedure in place to make such a claim and it also sees all of the money go to the claimant with the opposition being responsible for all legal costs. It is a no-win-no-fee case which also plays into the hands of the claimant.

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What Went Wrong With PPI

May 20th, 2010

PPI Loan Protection is a form of Payment Protection Insurance and goes under other names such as Insurance and Payment Care. Essentially, what it does is provide protection to the borrower against any unexpected change in circumstance which has rendered the borrower unable to make payments on their loan.

There has been a huge problem with PPI loan Protection, however. There have been literally millions of people whom have been sold policies that they shouldn’t have. Many did not the typical profile of someone who should have been sold such a policy. Including those unemployed, with a history of poor health, past the age of being eligible to qualify or just those whom were completely oblivious that they were agreeing to such a policy.

Some have ended up with more than one policy. Someone applies for a personal loan and somehow end up with PPI, they get a mortgage and again receive PPI and then take out some home improvement such as double glazing and once again are lumbered with PPI. All of a sudden, they are paying out thousands in Personal protection which you didn’t need or want.

You could have been subject to thousands of pounds of payments towards PPI. If you feel that you have been mis-sold, you are entitled to have this money returned to you .Banks, credit card companies and finance and insurance companies have been under the spotlight and consequently, in serous trouble, for failing to exercise adequate sales controls.

If you feel that you have been subjected to this poor practice, you have six years from the commencement of the loan to act like many others who have made PPI claims. If that period had passed, then unfortunately the law is against you and you no longer have a right to make a claim. And that could cost you thousands of pounds of payments that were rightfully yours to begin with.

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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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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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Identifying Mis Sold Payment Protection Insurance

March 31st, 2010

Mis-sold PPI has been the centre of a lot of negative media coverage over recent years. The widespread mis-selling of the payment protection insurance policies has led thousands of people to reclaim PPI. But with all the confusion surrounding the policies, how do you even know if yours was mis-sold?

Well, there are three main categories of mis-selling, but these are by no means exhaustive. Perhaps the simplest one to interpret is that of whether you were sold the product without knowing it. Believe it or not, this has happened! Because PPI is sold alongside loans and mortgages (as well as other hire purchase agreements and credit cards) the figures can be confusing when you’re applying. For example, you might have been quoted a monthly repayment cost for a “fully protected loan,” which incorporates a monthly PPI cost. However, if the lender did not make clear that this was an additional payment at the time of the application and as such, you were not aware that you even had the policy then your PPI was mis-sold.

Sometimes it looks as though PPI is a mandatory part of a credit agreement, and the person selling the policy doesn’t say differently. This is mis selling by misleading. There are also times where it is made out that taking out PPI will make you more likely to get a positive decision on your credit, which is of course not true.

There are some people who are not eligible to claim on a PPI policy yet are still sold them anyway.. Such people include the unemployed, self employed or those with a medical condition and this essentially means people have taken out a policy they will never be able to claim on, wasting money.

These examples are far from exhaustive and if in any doubt at all as to whether or not your PPI policy may have been mis-sold, seek professional advice.

Read more about mis sold payment protection insurance


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How Can I Reclaim My PPI?

March 28th, 2010

If you know what PPI is you will probably be one of the hundreds of thousands of people considering claiming it back and wondering if you are entitled to. You, like many others, may not know if you are eligible to claim and this is why the banks could face a huge wave of payouts.

Over the last few years, commission hungry banking salesmen have forced a PPI onto every customer taking out a loan, mortgage or any other financial product. In almost all circumstances the PPI was not suitable for the customer it was being sold to meaning if they were put in a position in which they could not make repayments, the insurance would not cover them. Banks were also secretly adding PPI to many contracts and by agreeing to terms and conditions, customers did not realise that the small print implied they would be paying for this.

All along, the lenders knew full well that the products they were selling were entirely inappropriate for the customers, something which financial watchdogs have frowned upon very much. Now many of the large lenders are being forced to pay back the money to customers but they are still adopting a ‘don’t ask – don’t get’ policy meaning the customer has to chase them for their money, often alone but more successfully with the help of legal experts.

The first thing you need to do to try and claim back your PPI is to write a letter to your bank/lender asking for a full refund. This will be answered with a polite variation of ‘jog on!’ which will require you to be more aggressive, threaten legal action and declare your intent to involve the financial ombudsman. Your claims will most likely continue to be met with dismissal at which point you may as well get the financial ombudsman involved but the key to success is to be persistent and by all means get the financial ombudsman involved but if all else fails, seek professional help.

Using a solicitor to claim back your PPI is hassle free as they are experienced and do all the running around for you. Their success will most likely be swift and stand a better chance than acting on your own behalf. If you shop around you will probably be able to find a no-win-no-fee solicitor which means you can get back all of the money you are owed.

If you are looking for the best PPI claims lawyers then why not speak to Donns LLP, the best lawyers for dealing with your PPI claim.


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Can I Reclaim My PPI?

March 25th, 2010

Millions of UK consumers have purchased financial products in the last ten years and almost of them will have been sold Payment Protection Insurance as an add-on. PPI is designed to cover your ability to repay your debt should you find yourself in unfortunate circumstances such as injured or unemployed, however, the lenders have been using a loophole to sell PPI to customers who were not qualified for the cover or who did not fit the requirements of the PPI they were sold.

Over the last decade, lenders have generated estimated revenues of 3bn by being able to avoid making payouts when necessary. Despite acting on a vague technicality they have been deemed to be in breach of financial practice and have faced investigation from the authorities. Many high street lenders have been slapped with fines of up to 7m and stand to lose much more from refunds.

The scale of this rip-off was fuelled by commission hungry salesmen who would often stipulate if you did not take out the PPI, you could not have the loan, which is wholly untrue. Some lenders only mentioned the purchase of PPI in the small print and by signing the contract you implicitly agree to pay for it, despite not being included in your original quote.

Some people are ineligible for PPI by their very definition and have still been paying for it, for example if you are over the age of 65 you will not be able to utilise PPI as you are above the age of retirement. Anyone who has paid for PPI over this age is legally entitled to a full refund.

Self employed consumers are considered to be in a less stable financial position than someone in full time employment so you will not qualify for payment protection insurance, however, your lenders will be more than happy to offer it to you with no intent to pay it back to you.

Most lenders will require a copy of your medical records as insurance is usually based on the likely hood of you falling ill or getting injured, if you have a history of illness or any other medical ailments you will not qualify for PPI. As you can imagine, the lender will be very keen on ensuring you take out PPI even with your medical record in their hand and you will have no chance of being covered.

If you have been mis-sold PPI like this or in any other fashion you are probably entitled to a refund, although you will have to chase the banks for this and it is often easier to het the help of a legal professional.

If you are looking for good PPI claim then talk to Donns LLP who can guarantee to help you PPI claims

categories: Banks,law,solicitors,PPI,payment protection insurance,claim,reclaim,claims,reclaim


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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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