Financial Ombudsman Service reports almost 6,000 ‘frivolous’ PPI claims in 2012/11

June 30, 2012 · Posted in Insurance · Comment 

Although the first mis-sold payment protection insurance (PPI) claim was made almost 20 years ago in 1992, this issue has increasingly got worse. In the year 2011-2012, the Financial Ombudsman Service (FOS) recorded an explosion of new PPI claims, with 157,716 out of the 264,375 new disputes that year relating to mis-sold PPI claims; 60 per cent of the FOS’s total complaints.

Parallel to this rise, however, was also an increase in bogus PPI claims. The FOS revealed that almost 6,000 of the claims made against mis-sold PPI were ‘frivolous and vexatious’ as no PPI was attached the product in question. In 2011-2012, these bogus PPI claims amounted to 2.5 per cent of the total PPI claims received by the FOS compared to 0.9 per cent the year before.

This rise in both genuine and bogus claims could be down to the number of new television adverts encouraging people to claim back mis-sold PPI premiums. The FOS reported that 69 per cent of all PPI claims received last year were made by such claims management agencies as seen on TV, a figure which although high, is actually lower than the 76 per cent the year before.

Millions of claims have been made by consumers who bought PPI, believing that they would benefit from the insurance should they fall ill, have an accident or lose their job and therefore be unable to make loan and credit card repayments. However, it has been revealed that many were mis-sold this insurance at they would not have been covered.

Although the banks have publicly admitted that they have mis-sold PPI to potentially millions of consumers and have thus put away millions of pounds to cover successful claims, they still plan on assessing each case to ensure no bogus claims fall through the net and therefore ‘get back’ PPI payments.

Contact MoneyBright PPI Claims to find out whether you can claim compensation for a mis-sold policy.

PPI Claims – Have you claimed your cash back?

December 20, 2011 · Posted in Finance · Comment 

PPI or Payment Protection Insurance has been under the consumer spotlight for the most part of 2011. Its awareness has been one of the key players in the financial industry of the 21st century and with 2011 coming to a close, it starts the section of the year where we begin to make goals and resolutions to motivate us for the New Year. What could give you a better start into the New Year than some extra cash courtesy of the bank?

Payment Protection Insurance has been generating windfall payments for millions in England and across the UK. This unexpected cash has been helping people to fulfil goals like, going on holiday and buying a new car all year and further improve their lifestyle with home improvements and other positives that the extra cash can provide. It is thought that around 20 million people were affected by the mis-selling of PPI in the UK and millions of people have already managed to claim theirs back. Nobody knows the overall average refund but the closest it can be calculated to is around 7000! People are using this extra cash to make the most of the financial crisis that hit us this year.

These refunds bring little happiness to some people when the whole mis-selling escapade has caused them to lose their lifestyles and even their houses. Many people we mis-sold this PPI and soon after realised they couldn’t afford the extra payment on top of the price their already paying. Others didn’t even know that the insurance was being added to their loan. Whilst many were sold a product that they couldn’t even use due to their self-employment or pre-existing health problems (two circumstances where you would really need PPI).

So for many people they are receiving their money back and this is a positive thing, they’ve received a refund on a useless product, plus they got all of the interest they’ve paid on top of the PPI and in some cases people are even getting an extra 8% statutory interest in way of compensation. It’s not been a positive experience for some people but hopefully the refund of their PPI should bring some self-satisfaction and peace.

2011 has been a promising year for many in terms of their finances and with many families enjoying their winnings; it’s been a positive one too. With the average time of 8-12 weeks to look into a loan or credit card for PPI, you don’t have a lot to lose. It’s wise to look into your finances sooner rather than later as this insurance can only be claimed back within 6 years of you taking out the loan/credit card. So get it claimed back!

If you haven’t managed to get your PPI Claims in yet. Make sure you find a reputable firm willing to do the work on a ‘no-win, no-fee’ basis and will only charge you upon completion of a successful claim!

How do you start a PPI claim?

December 1, 2011 · Posted in Finance · Comment 

If you are considering either purchasing or making a PPI claim, you need to be armed with as much information as you can. To aid you in making the correct decision, evaluate the key points before you commit to your decision and sign on the dotted line for either a policy or claims procedure.

One key point you should take into account is that you have possibly been mis-sold payment protection insurance on a previous loan. There are more than 20,000,000 PPI polices in the UK and many of those have been sold as an upgrade with a loan. Many consumer support groups are of the opinion that approximately 2,000,000 of these have been mis-sold since 2003 and you may just be one of them.

When you are signing on the dotted line for a loan, you will usually be offered a PPI. It can seem like the sensible thing to do as they are essentially there to cover you for any periods of time in which you may have difficulty making your monthly repayments, Such instances could include unemployment or ill health. The problem lies in the fact that this isn’t as clear as it sounds. Some have tried to claim with their policy but have run into exclusions which see their claim unsuccessful. There are many lenders which failed to tell PPI buyers about exclusions and the result of this is that there are potentially millions of policies which have been mis-sold.

There have been times when policies were automatically added on to the loan without the borrower even knowing about it. Further, sales reps have told customers that it was obligatory for them to buy PPI to take out the loan.

If you take out PPI, ensure that you are aware of such exclusions or you may be buying one that will be of no benefit to you. One common exclusion has been that they don’t cover anyone beyond the age of retirement.

How do you start to claim back PPI? Find out more online.