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Archived PPI Claims News

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PPI News Snippets

AN INSIGHT INTO THE MEDIA'S VIEW ON THE PPI SCANDAL

Falling rate of PPI complaints indicates scandal is tailing off

25th September 2013. It's good news for banks and the Financial Conduct Authority (FCA) as figures reveal the PPI scandal seems to be nearing its peak and on the verge of a downward trend. While the number of PPI complaints to the FCA rose in the second half of 2012 compared with the first half, the climb was only marginal. Some 2,170,537 PPI complaints were received in the second half of 2012, up from 2,060,297 in the first six months of the year. Banks are beginning to breathe sighs of relief as the slight increase suggests that the end may be in sight for the enduring PPI scandal. The PPI compensation bill that banks are having to foot has almost halved since its May 2012 peak of £730.5 million, having remained around the £400 million mark since December 2012.

The number of complaints unrelated to PPI also underwent a drop, standing at 1.25 million in the second half of the year. This is not only lower than the previous six months but is also lower than at any time since 2006, indicating that financial institutions are making a genuine effort to clean up their act in the wake of various scandals. This is a weight off the FCA's shoulders as it has increasingly been able to make its way through a backlog of complaints. Complaint handling within the UK financial services regulator also improved: some 88.4% of cases are closed within eight weeks, up from 86% in the first half of 2012 and 64.1% in the final half of 2012. Source

Barclays trials improvements in customer service to "clean up sins of the past"

24th September 2013. Barclays has played a major role in the various banking scandals that have plagued Britain in the past few years, but it seems the institution is starting to clean up its act as it pushes ahead with new commitments to improve customer service. After receiving some 250,000 responses to its 'Your Bank' initiative launched earlier this month asking customers how they could improve, Barclays is in the process of reviewing its overdraft fees. Speaking to The Daily Telegraph, Barclays' retail and business banking chief executive, Ashok Vaswani, said the bank has been trialling a text alert service which warns customers when they are on the brink of dipping into the red. Customers with multiple accounts may be able to offset money in one against an overdraft in another to dodge charges in another initiative being considered by Barclays.

The text alert service has already cost the bank £1.5mn in lost fees. Mr Vaswani, who started working at the bank in 2010, said: "I'm going through the business with a fine toothcomb. We want to de-risk the business and clean up any sins of the past. "We really, really have to put customers at the centre of everything we do." Britain's five big banks are striving to rebuild consumer trust following a number of banking crises including the credit crunch, the fixing of Libor and the ongoing PPI scandal. Banks are still being flooded by thousands of PPI complaints and the £18bn bill continues to rise at a remarkable rate. Source 1, Source 2

Former director of CBI will chair new body to 'restore trust in the banking system'

23rd September 2013. The former director-general of the Confederation of British Industry (CBI) has been named as the chair of a new body designed to monitor the standards of the UK banking industry. Sir Richard Lambert, who headed up the CBI from 2006 to 2011, was announced as chair in a joint statement by chiefs at the big five banks on Friday (20 September) - RBS, HSBC, Barclays, Lloyds and Standard Chartered. The new standards body will be set up in a bid to put a stop to unethical practices in the wake of various financial scandals, including the fixing of Libor and the ongoing problems with payment protection insurance (PPI).

John Cridland, current CBI director-general, said: "Restoring trust in our banking system is absolutely fundamental to the future of the UK economy and I can think of few people better qualified to do this than Richard." He added: "His breadth of experience and fearless independence are exactly the attributes needed to address the cultural and professional challenges which parts of the banking sector face." The Parliamentary Commission on Banking Standards first advised the creation of the body in a June report, where the possibility of a radical shake-up in the banking industry was the main concern. At the time, the chair of the Commission, Andrew Tyrie MP, said that the "health and reputation of the banking industry itself is at stake" and called for reckless banking practices to become a criminal offence. Source

Major role played in PPI scandal drags Barclays down to lowest rated UK bank

18th September 2013. Britain's banks and other financial institutions may be trying to leave the various scandals that have dominated recent headlines firmly behind them, but it seems their customers aren't so willing to forget. Using research from the Ethical Consumer website, campaign group Move Your Money scored 70 institutions, with Barclays dragging its heels in last position.

The bank scored just four out of 100 points in an assessment that tested honesty, ethics and customer service. A spokesman for Barclays said the bank was "disappointed" by the ranking. He commented: "We work hard to put our customers at the heart of everything we do and have taken active steps to ensure this happens." However, Laura Willoughby, head of Move Your Money, argued that Barclays achieved its very low score due to high volumes of customer complaints, its involvement in Libor fixing and the role it played in the payment protection insurance (PPI) scandal, which is expected to be the biggest consumer financial scandal in history.

She said: "Banks want you to think they have changed. Our scorecard shows that many have not." The institutions were scored on five criteria including customer service, honesty, culture, ethics and impact on the economy. While Lloyds, RBS and HSBC all scored higher than Barclays, all four were awarded a 'red' rating from Move your Money and current account customers have since been urged to switch to other banks and building societies. Source

Banks wrongly receive the blame for PPI complaint mis-handling, says BBA spokesman

17th September 2013. Following the launch of an investigation into the way banks deal with PPI complaints, a spokesman for the British Bankers' Association has argued that it is claims management companies who are to blame for the hold up. After figures surfaced revealing that 86% of PPI complaints taken to the Financial Ombudsman Service (FOS) after being rejected by Lloyds were upheld, the Financial Conduct Authority (FCA) announced that two financial institutions had been referred to enforcement. However, a BBA spokesman argued that banks were "continuing to improve their systems" and that the complaints process is being hindered by a handful of claims management companies (CMCs).

He said: "All banks have hired more staff to deal with the large numbers of complaints on this issue, but unfortunately the actions of some unscrupulous CMCs who refer huge numbers of complaints to the ombudsman, whether there are grounds to or not, mean that the system is being clogged up and that people with genuine complaints don't always get the service they deserve." However, chief ombudsman Natalie Ceeney has commented in the past that customers are turning to CMCs because banks are taking too long to respond to complaints. She has also pointed the finger at banks for shifting valid complaints across to the FOS and delaying the compensation process by a matter of months. Source

"We will take more enforcement action": FCA's warning to banks over PPI complaint mishandling

16th September 2013. Following the news that as many as 86% of payment protection insurance complaints shifted from banks to the Ombudsman have been upheld, the Financial Conduct Authority (FCA) is taking strong action to crack down on unscrupulous financial institutions.

The FCA recently announced that two more financial institutions have been referred to enforcement over their approach to PPI complaints and stated that the ensuing recommendations will be published in the second quarter of next year. The organisation claimed complaint handling at a number of major banks and building societies "isn't working" after figures surfaced which revealed that 86% of complaints rejected by Lloyds Banking Group were upheld by the Financial Ombudsman Service (FOS). Commenting on the launch of the thematic review, chief executive of the FCA, Martin Wheatley, said: "We have got two large investigations underway and we have completed two where we have levied quite strong fines.

"We have been working very hard to look at bank complaints handling. We have taken enforcement action, and we will take more enforcement action and continue to pressure how banks handle complaints through our ongoing supervision and thematic work." The Co-operative Bank was fined £113,000 back in January after failing to treat customers fairly over PPI compensation and Lloyds Banking Group was fined £4.3 million the following month after being accused of delaying PPI compensation payouts. Banking consultant Mehrdad Yousefi said: "Banks' complaints handling has worsened thanks to the rise in PPI claims, the lack of banking competition, insufficient customer service resources, and a lack of trust in banks generally, which in turn triggers more complaints." Source

FCA to investigate two banks over "outrageous" volumes of PPI claims rejections

11th September 2013. The Financial Ombudsman Service (FOS) has published some shocking figures in the past few months showing that they are upholding as many as 80% of PPI claims originally rejected by banks - and now the Financial Conduct Authority (FCA) has stepped up by confirming a series of investigations into the matter. Payment protection insurance (PPI) is a type of insurance that was sold alongside credit cards and loans by banks and financial institutions. However, many customers were ripped off in the sense that they would have been unable to claim on it or did not actually need the cover in the first place.

Chief executive of the FCA, Martin Wheatley, said that two "large" investigations are currently underway, but refused to name the banks in question. He said that the number of legitimate PPI cases rejected by banks was "absolutely not acceptable" and told a committee of MPs that the FCA will "take more enforcement actions" against complaint mis-handling.

The Financial Ombudsman, which deals with complaints that have been turned down by banks, has found in favour of the customer in more than eight in ten complaints made against certain institutions, highlighting that banks are routinely shifting legitimate cases across to the FOS. Mr Wheatley described the figures as "outrageous". He added that the mis-handling of complaints at Lloyds, which were exposed by an undercover reporter for The Times back in June, had "not gone unnoticed". Source

PPI drives growth in UK jobs market

10th September 2013. The widespread payment protection insurance (PPI) scandal has helped to secure the most positive outlook for employment in the UK for six years. Around 20,000 jobs have already been created by the big banks to deal with customer PPI claims and thousands more by the hundreds of claims management firms (CMCs) that have sprung up in the wake of the scandal. This is according to recruitment firm Manpower, which believes that banks will need to recruit a great deal more staff to manage the vast volumes of PPI claims that continue to flood in. This dramatic rise in jobs has fuelled positive growth in the UK labour market, with 16% of finance and business employers alone planning to recruit staff.

Overall, 6% of employers expect to create jobs in the next three months, compared with 5% in the previous survey. By the end of 2013, the outlook for employment in Great Britain stands to be the best for six years. In his keynote speech on the economy yesterday (September 9), Chancellor George Osborne said that the economy is "turning a corner".

He said that since the end of the recession, the UK has grown by 4.3%, highlighting that this is more than the eurozone. "At the same time the labour market has performed much better than expected," he continued. "Employment has grown extremely strongly - more so than even the most optimistic forecasts, with over 1.3 million net new jobs created in the last three years. "Indeed, employment is now above its pre-recession peak in the UK." Source 1, Source 2, Source 3

TSB launches as "completely clean bank" untainted by PPI mis-selling scandal

9th September 2013. TSB has erased all links with Lloyds Banking Group as it launched as a "completely clean" standalone bank. TSB disappeared 18 years ago when it merged with Lloyds, but is now set to become the UK's eighth biggest high street bank after shaking off the troubled bank and re-launching as a standalone institution. Lloyds chief executive Antonio Horta-Osorio highlighted that TSB was not tarred with the same brush as the other high street banks, which have been rocked by considerable turbulence threatening the financial sector in the past few years.

He described it as a "completely clean bank" and indeed, TSB is not weighed down with claims concerning the payment protection insurance (PPI) mis-selling scandal like Lloyds, which played a major role in what has been called the biggest consumer finance scandal in history.

TSB is also not associated with complex interest rate swap products and is free of the toxic assets which came from Lloyds' acquisition of HBOS at the peak of the economic crisis, resulting in the 39% state-owned bank being bailed out by the taxpayer. Erasing all links with Lloyds completely, the black horse emblem has been replaced with a new TSB logo featuring white lettering across blue circles. Mr Horta-Osorio added that TSB will be a "real challenger on the high street".

TSB will have offices in Birmingham, Gloucester, Edinburgh, London and Bristol and call centres in Swansea, Sunderland, Edinburgh and Gloucester, collectively staffed by 8,000 people. Source

FCA confirms investigation into PPI complaint handling

4th September 2013. With figures published earlier this week revealing that the Ombudsman found in favour of 90% of customers bringing rejected PPI complaints against Lloyds Banking Group, the Financial Conduct Authority (FCA) has announced it will conduct a review into complaint handling. Hundreds of thousands of customers have been left with no other option than to take their PPI claim to the financial ombudsman after banks rejected complaints or severely delayed compensation. In a speech to the Building Societies Association, director of the FCA's mortgage and consumer lending subdivision, Linda Woodall, said: "The amount of complaints that go to the ombudsman suggests that something isn't working in the way in which firms manage and investigate customers' complaints." As many as nine out of 10 PPI complaints against Lloyds - and its various forms including Halifax and Bank of Scotland - were upheld, compared with nine out of 10 complaints concerning Nationwide Building Society which were found against the customer. In theory however, both Lloyds and Nationwide should be working to identical guidance from the FCA about how to handle PPI complaints. Both financial institutions also have the same regulatory duty to treat customers fairly. This suggests that some banks are using the ombudsman as a convenient place to 'dump' the thousands of complaints that are still flooding in from victims of the mis-selling scandal. There have also been some suggestions that banks believe people will drop their claim if it is rejected the first time round. Ms Woodall said the review will "identify why complaint handling is not working well for some consumers and address poor practice". She added: "We are hopeful that this will lead to a reduction in the number of customers requiring the services of the Ombudsman." Source 1, Source 2, Source 3

PPI complaints to ombudsman soar as banks continue to deny or delay payment

3rd September 2013. Claims from the banking industry that the volume of PPI compensation claims is starting to slow down have been challenged as new figures show that a whopping 86% of all new complaints made to the financial ombudsman in the first six months of the year were about the mis-sold insurance. A total of 266,228 complaints were made in the first half of this year, marking a 26% rise in the number of PPI complaints to the ombudsman in the previous six months. The ombudsman, which has accused some financial institutions of taking too much time to resolve PPI claims, is often left to deal with cases if banks do not reach an agreement with the customer.

Chief ombudsman Natalie Ceeney said: "Disappointingly we are still seeing cases where businesses are not following our long-standing approach to PPI, resulting in long waits and unnecessary delays for consumers." Some banks and building societies have been dealing with complaints more justly than others, with the ombudsman finding in favour of just 7% of Nationwide customers while upholding a staggering 90% of complaints declined by Lloyds TSB. Lloyds Banking Group's customer service director, Martin Dodd, said: "The group continues to proactively manage the issue of PPI complaints in order that customers can receive redress if they have been mis-sold. "This is an ongoing process and we will continue to review all claims in an in-depth manner that produces fair outcomes for customers." Source

40% of PPI cold calls interrupt meetings, presentations and family meals

2nd September 2013. Phone calls, texts and automated messages concerning payment protection insurance (PPI) are disrupting work and family life according to a recent survey. According to the Citizens Advice Bureau, just over a quarter of people (27%) received their latest PPI call while sitting down for a meal with the family and 14% received a call at work, some in the midst of meetings and presentations. Around 30 million people have been disturbed by a small number of PPI claims firms which seek to drum up business through unwanted contact with potential customers. Over 90% of the 5,682 people surveyed were contacted by a telephone call, 40% received automated messages to landlines and 35% got a text to their mobiles.

Overall, two thirds of British adults have received messages regarding PPI and 98% of these did not give their consent to be contacted. Citizens Advice chief executive Gillian Guy called for a ban on cold calls from financial services firms. "Nuisance calls aren't just irritating, they're often a sign that the service on offer isn't very good or is actually a scam," she said. Source 1, Source 2

Mis-sold credit card protection debacle dubbed the new PPI scandal

28th August 2013. Thirteen banks have set aside £1.3 billion worth of compensation to redress the seven million people affected by a fresh mis-selling scandal involving credit card protection. A report in The Guardian revealed that Britain's high street banks are currently caught up in yet another mis-selling scandal as they try to rebuild their reputation and restore consumer faith following a raft of mis-sold PPI policies. A total of 13 banks and building societies, including Barclays, Royal Bank of Scotland and HSBC, are set to pay out the sum to seven million customers who purchased credit card and identity theft protection policies from card insurance specialist CPP. Around 4.4 million policies designed to 'protect' against credit card fraud and identity theft were taken out and 19 million renewed between 2005 and 2011. However, card issuers already provide this protection for free, which explains why only 0.5% of people with policies from CPP have made a claim.

Average payouts are expected to stand at £185 per person. This week CPP will be writing directly to customers it believes might be entitled to a claim, and with the high volume of policies bought in the six year period racking up a gross profit of £354 million, there will be a hefty bill to foot. News of the credit card protection scandal thwarts recent efforts to restore faith in the UK's high street banks, which has included hiring new staff to implement the clean-up in the broken banking culture. Source 1, Source 2, Source 3

The 'new PPI' - how did the credit card protection scandal come about?

28th August 2013. Faith in British banks is at an all-time low, and with the rigging of Libor and the rampant mis-selling of PPI policies, it is not difficult to understand why. Banks are keen to give the impression they are doing what they can to fix this broken banking culture, but their efforts are being thwarted by a series of incidents. For example, an undercover investigation at Lloyds found major problems in its PPI complaint handling procedure and the Ombudsman is still finding in favour of customers who have had claims rejected by banks. And now news of a credit card fraud and identity theft protection scam has surfaced, with the media flagging it as the new PPI.

Thirteen financial institutions, including state-owned Royal Bank of Scotland, have earmarked £1.3bn to compensate seven million customers who took out the product from CPP Group, a York-based life assistance company. Instead of getting through to their bank when trying to activate bank cards, customers came into contact with a sales person at CPP, who tried to sell one of two products under investigation. The first insured customers for up to £100,000 in the event their cards were stolen and cost £30, despite the fact banks already covered them for free. The second was an identity theft product costing £90.

Between January 2005 and March 2011, £354mn gross profit was generated after 4.4 million policies were sold. Around 18.7 policies were also renewed, raking in £656mn and further ramping up the compensation bill. According to the Financial Conduct Authority (FCA), customer compensation could average around £300. While this isn't on the same scale as the PPI scandal, the idea behind it is fundamentally the same and could prove a hindrance in the race to recoup customer trust. Source 1, Source 2, Source 3

Banking industry "unlikely ever to be the same again"

21st August 2013. Barclays struggles to shake tarnished reputation as it still receives 1,500 PPI complaints every day After Barclays bank ramped up its provisions for payment protection insurance (PPI) compensation payouts last month, the bank hoped this would bring the mis-selling scandal to a close.

However, hopes have been dashed as figures reveal that Barclays is still receiving in excess of 1,500 complaints every single day about the mis-sold insurance. In the first half of this year alone the bank received 285,000 complaints regarding "general insurance and pure protection" with most of these concerning PPI.

While this represented a 1% decrease compared to the second half of 2012, the figure is still an incredible 287% higher than it was two years ago. Barclays set aside a further £1.35bn for its PPI compensation pot last month in the hope that this would draw a line under the saga, but the freshly uncovered figures suggest it is struggling to shake its reputation as the UK's most complained about bank. A Barclays statement said: "Barclays has not sold PPI for several years, therefore complaints about PPI reflect mistakes made some time ago, rather than a reflection of current performance." However, the number of PPI complaints the bank has upheld has increased from 65% in the final half of 2012 to 68% in the first six months of this year.

The Financial Ombudsman Service (FOS), which has been snowed under with cases, found in favour of three-quarters of Barclays customers who were originally turned away by the bank and forced to take their complaint to the Ombudsman.Source 1, Source 2

Banking industry "unlikely ever to be the same again"

20th August 2013. The reputation of UK banks has suffered a blow in the past few years, with customer confidence still at an all-time low after the likes of the payment protection insurance (PPI) scandal and the rigging of Libor. With problems rife in the industry, banks have had to face up to their mistakes and implement a few changes to improve the banking culture and restore customer faith. The industry has undergone such a drastic transformation that KPMG has said in a new report that bank business models are "unlikely ever to be the same again".

One of the big changes is a shift in leadership. Between 2006 and 2012, more than 75% of non-executive directors and 72% of executive management have been replaced at the five major UK banks (Barclays, Lloyds Banking Group, HSBC, RBS and Standard Chartered). Mid-July brought the news that the acting director of retail at the Financial Conduct Authority (FCA) will step up to the role of global head of compliance for wealth and investment management at Barclays in October. Since Christina Sinclair played a major role in securing redress for consumers affected by the PPI mis-selling scandal, the bank hopes that she will help the clean-up at Barclays.

Banks have also been forced to set aside billions of pounds to compensate those who were mis-sold PPI in the past. But while the total bill stands at over £10bn, the KPMG report shows that all five major UK banks recorded a profit in the first six months of the year for the first time since 2010. Source 1, Source 2

PPI compensation driving economic growth as payouts encourage consumer spending

19th August 2013. Economists have long surmised that the enormous volume of payment protection insurance (PPI) payouts has been driving the rise in household spending, but this theory has not been validated until now. The Office for National Statistics (ONS) confirmed last week that the £10 billion of PPI compensation claim payouts have encouraged spending, particularly on big ticket items, stimulating economic growth. Economists had presumed that PPI compensation payouts would add around 1% to annual disposable incomes, giving consumers more confidence and helping the economic recovery.

Simon Ward, chief economist at Henderson, said: "It has been a constant supporting factor for consumers for 18 months or so." In an economic review into household spending on cars in July, the ONS said: "A more recent influence on purchases of cars may be the compensation payouts to consumers made as a result of payment protection insurance mis-selling, amounting to a cumulative total of just over £10bn since the start of 2011.

"The relatively large size of these payments offers households the potential to make large purchases, such as new cars, which they might otherwise have deferred. The timing of payments corresponds quite closely with the renewed pick-up in car purchases that began in 2011." While the PPI payouts have undoubtedly played a role in improving household finances, they do little to explain the recent rise in consumer spending that has been driving growth. The scandal has had a wider impact on the economy, with thousands of people employed by banks and the Financial Ombudsman Service (FOS) to handle the claims and administer payments. Source

PPI supplementary fees rescue FOS from case fees shortfall

14th August 2013. The income generated from the new supplementary case fee for payment protection insurance related complaints that companies transfer to the Financial Ombudsman Service (FOS) has more than made up for the £17mn shortfall in case fees. The FOS budgeted £119.6mn for the 2012/13 financial year, but case fees in the 12 month period in fact totalled just £102.6mn, leaving a £17mn deficit. However, supplementary fees for payment protection insurance (PPI) claims came in at double the £52mn budget for the 2012/13 financial year, generating £126mn in total. The new £350 supplementary case fee introduced for PPI complaints in April 2012 is chargeable on the 26th case and any subsequent cases during the year.

Case fees work in the same way: businesses are not charged for the first 25 chargeable cases closed during the financial year, but any successive cases are charged as normal. Standard case fees rose to £550 for the 2013/14 financial year, a £50 increase from the previous year. Consumers are generally not charged for bringing a complaint to the FOS. The Ombudsman said that in line with accounting standards it has deferred a significant proportion of the supplementary case fee income received over the financial year into future years to cover anticipated costs. The FOS witnessed a 179% rise in the number of complaints in the first quarter of 2013/14, largely driven by the PPI mis-selling scandal. In the first 13 weeks from April 2013 the Ombudsman received 159,197 complaints, 83% of which related to PPI. Source 1, Source 2, Source 3

£1.4 million pay packet for FOS executives dealing with PPI complaints

13th August 2013. The Financial Ombudsman Service (FOS) has been incredibly busy this past year as huge numbers of PPI complaints continue to pour in. And it seems that all this hard work has been rewarded in financial terms, with the organisation's audited directors' report and financial statements showing that it paid its nine executives £1.4mn for the year ending 31 March 2013 (including pension and benefits). FOS chief executive Natalie Ceeney took home £256,064 in 2013 compared with £236,444 in 2012, a £20,000 increase.

She said: "The executive team, ably guided and supported by our board has significantly developed our organisation over the last year. The most profound change, of course, was the decision to build our capacity to handle the influx of new PPI cases."

According to its annual review published in May, the rise in PPI complaints has driven a 92% rise in new cases received by the FOS over the course of the year, prompting the organisation to recruit 922 permanent staff to deal specifically with the mis-sold insurance. Ceeney added: "We have been careful to develop our organisation responsibly, ensuring that we maintain quality at the heart of what we do, and ensuring that we spend money wisely." The report said: "Salaries for members of the executive team are reviewed annually. Any increases reflect changes in responsibility, inflation, market movements and individual performance. Salaries of the chief executive, deputy chief executive and the principal ombudsman also take account of the judicial salary-scales." Source

New BT phones to block out PPI nuisance calls

12th August 2013. Following a spate of complaints concerning nuisance calls, BT has launched a new collection of phones designed to block spam. A recent survey by industry watchdog Ofcom found that as many as 82% of people are receiving an average of 2.4 nuisance calls a week, with more than one in five of these related to payment protection insurance (PPI) claims management companies looking for business. While the majority of claims management companies (CMCs) operate ethically, there are a few that slip through the net and try to drum up a list of clients using nuisance calls in order to get them to claim for mis-sold PPI.

In a bid to spare consumers from these spam phone calls, BT has unveiled the BT7600, BT4000 and BT4500, a collection of landline phones designed to block withheld and international numbers, which are often the source of nuisance marketing calls. Ofcom revealed that PPI reclaims account for the majority of spam phone calls, with 97% people deeming them the most annoying - but now unwanted calls and those without caller ID can be locked out.

A VIP 'whitelist' of numbers can be created so that calls from friends and family overseas are not blocked. John Petter, consumer managing director at BT said: "BT takes the issue of nuisance calls very seriously and is constantly looking for ways to help our customers to manage their calls. "We are now expanding our range of nuisance calls phones to give even more customers the peace of mind that when the phone rings it should be someone they want to speak to." Source 1, Source 2

FCA investigates PPI complaint handling at Lloyds

7th August 2013. Lloyds Banking Group is under investigation from the Financial Conduct Authority (FCA) as the regulator seeks to examine the way in which payment protection insurance (PPI) complaints have been handled to date. The bank has been forced to put aside £50 million in order to cover the cost of the probe and said it was disappointed that action was being taken by the regulator. News of the investigation follows the termination of Lloyds' contract with accountancy firm Deloitte in May after an undercover reporter from The Times published evidence of bad practice in the way that PPI complaints were dealt with. Lloyds was also fined £4.3 million by the watchdog back in February after finding that up to 140,000 customers had endured delays when it came to receiving PPI compensation payouts.

The bank stated: "We will work with the FCA to resolve the issues and ensure our customers' complaints are addressed efficiently and fairly." What's more, Lloyds recently revealed that it has earmarked a further £450 million to cover additional PPI mis-selling costs, taking the total bill across all banks to a staggering £7.3 billion. It's not all bad news for the bank, however; the lender announced last week that its half-year profits of £2.1 billion have enabled a return to the black. At this time last year, the bank reported losses of £456 million, but a reduction in costs and efforts to drive down bad debts by 43% have propelled it out of the red. Source 1, Source 2

Mounting pressure on banks to reopen £4bn worth of rejected PPI claims

5th August 2013. The banking industry is not particularly popular with consumers at present and now fresh research has given the UK population yet another reason to point the finger at high street banks. New figures reveal that banks have saved a staggering £4 billion in payment protection insurance (PPI) compensation payouts after rejecting claims brought by customers who believe they had been affected by the mis-selling scandal. The research, conducted by The Times and Forbes Douglas, found that 2.4 million PPI compensation claims were dropped by consumers between 2010 and 2012 after they were rejected by their banks.

The initial rejection deterred many customers from taking their complaint elsewhere, but the research showed that more than 1.5 million would have been upheld should customers had gone on to appeal their cases with the Financial Ombudsman Service (FOS). With the average payout standing at £2,750, these abandoned claims have saved banks - and swindled customers out of - around £4 billion, prompting campaigners to call for rejected PPI claims to be reopened. The revelations are not likely to endear banks to consumers or help to repair their dented reputation, which has crumbled in the wake of PPI mis-selling and the rigging of Libor.

Industry bodies are similarly unimpressed with banks, which have been shifting claims onto external bodies rather than dealing with the problem themselves, forcing the FOS to hire thousands of extra staff. According to Which? the total PPI compensation bill stands at £18.4 billion - double the cost of the 2012 Olympic Games. Source 1, Source 2

Lloyds prepares to pay out millions more for new PPI claims

5th August 2013. Payment protection insurance is on track to become the most expensive mis-selling scandal in the history of the UK banking industry, and now more so than ever as new figures reveal that banks are planning on adding further to the compensation pot.

Lloyds Banking Group may have already earmarked a staggering £7.3bn to reimburse affected customers, but warned in recent disclosures alongside its financial results for the first half of 2013 that it might have to set aside hundreds of millions more for this purpose. While PPI claims have resulted in an average payout of £1,700 this year, Lloyds stated that going forwards it was assuming a lower figure of £1,440 per claim. However, for every £100 above this estimated figure the bank would need to shell out a further £70mn. The bank would also be forced to increase provisions by £10mn for every 1% increase in response rate to its PPI mailing programme in excess of the current 27% and also for every 1% increase in the claim uphold rate that outstrips the 73% assumption.

In a statement Lloyds said: "This represents the group's best estimate of the likely future costs, but a number of risks and uncertainties remain and it is possible that the eventual outcome may differ materially from the current estimate resulting in a further provision being required." Lloyds is not the only bank feeling the financial repercussions of the PPI scandal: last week Barclays increased its PPI mis-selling provision for the fifth time after it set aside a further £1.35mn. Source 1, Source 2

PPI claims management firms offer financial incentives to persuade people to hand over details of friends and family

August 2013. Hundreds of PPI claims management companies are operating on a refer-a-friend scheme, offering financial incentives to people who are willing to hand over the details of friends and family. Claims management firms have sprung up all over the country in the wake of the PPI mis-selling scandal, and some are taking drastic measures to stand out from the competition. One way to do this involves giving customers who pass over the details of friends and family vouchers and payments, ranging from £20 to £50 per referral. An anonymous This Is Money reader said that she had collected £170 worth of vouchers by referring friends to a PPI claims management firm. A spokesman for the firm defended the scheme, saying: "We don't want to be cold calling potential customers and our refer a friend scheme avoids unsolicited marketing that many companies are involved with." The company also insisted that the permission of the person whose details are being passed over must be given before any referrals take place. However, concerns have been raised that this could lead to more bothersome phone calls from claims management companies. While the majority of these do operate ethically, some slip through the net and have resorted to cold calling potential customers - even those registered with the Telephone Preference Service, which is designed to prevent unsolicited sales and marketing calls. Source

Barclays earmarks additional £1.35mn for "eye watering" PPI compensation bill

31st July 2013. Barclays has increased its PPI mis-selling provision for the fifth time after it set aside a further £1.35mn yesterday to compensate customers affected by the scandal.

The extra provision drives the bank's total PPI compensation bill to more than £4bn and pushes the overall total across all banks and financial institutions to £17.9bn, with further increases expected this week.

Half year results from Barclays revealed that the bank has also set aside another £650mn to compensate small business that were mis-sold interest rate swap products. This brings the bank's total mis-selling bill to £5.5bn. While the drop-off in claims per month has plummeted by 46% since the peak in May 2012, Barclays admitted the slowdown had not been as quick as expected, prompting it to add to its provisions for redress for the fifth time.

The latest provisions set aside for PPI redress may have taken the bank's mis-selling bill past the £4bn mark, but with these only being a "best estimate" of the cost, Barclays warned that further provisions may be in the pipeline. Which? executive director Richard Lloyd said: "The eye watering PPI compensation bill continues to escalate, showing how much banks have been in denial about the scale of their mis-selling. "The banks still have a long way to go to clean up their act and one way they should do so is by making it much easier for consumers entitled to PPI refunds to claim their money back." Source 1, Source 2, Source 3

Is the volume of PPI complaints on a downward trend?

31st July 2013. Banks can breathe a big sigh of relief as figures from the Financial Ombudsman Service (FOS) suggest that consumer complaints concerning payment protection insurance (PPI) are finally on a downward trend. The organisation is currently receiving 2,000 new cases each working day as opposed to the 3,000 it was dealing with on a daily basis six months ago. While chief financial ombudsman Natalie Ceeney noted it is difficult to predict trends, she told Reuters in an interview on Monday (July 29) that she suspects "we're on the downward curve". She said: "In any complaints cycle the numbers rise and you subsequently see them fall. I suspect we're on the downward curve. "Will it fall to 1,000 in six months? I just don't know. The interesting thing about PPI is none of us know where it's going to go." The figures come to light in the week banks are expected to announce plans to earmark billions more for the PPI compensation pot. The industry has already put aside in excess of £14bn to compensate those affected by the mis-selling scandal and both Barclays and Lloyds are expected to add to this in the near future. This is partially because most of the big banks have outsourced their PPI complaint handling rather than dealing with it themselves. Ceeney said: "The problem if you outsource is that you have to pay huge amounts of care to make sure your outsourcers are working to the right standards."Source 1, Source 2

PPI cold calling and deficient investigations put CMCs in firing line

24th July 2013. Claims management companies are coming under fire for nuisance tactics including cold calling and failure to trade responsibly. As the payment protection insurance (PPI) scandal has snowballed, a wealth of claims management companies (CMCs) have emerged to help customers secure the compensation they are entitled to. While the majority of CMCs operate in an ethical fashion, a few slip through the net and employ tactics such as cold calling to find business.

However, independent financial advice service Citizens Advice has had enough and has called on the government to clamp down on unscrupulous CMCs which resort to spam texts and nuisance calls to hunt for customers. Gillian Guy, Citizens Advice chief executive, said: "The Government should ban claims firms from cold calling, that way protecting people from the nuisance of unwanted calls and unscrupulous firms who don't provide all of the necessary information at the start." CMCs have also been causing problems for dealers, with partial investigations into a claim causing high levels of frustration.

According to the head of training and compliance at Finance Cover & Training, Karen Wagstaffe, a number of CMCs have been sending letters on behalf of customers to dealers without any indication as to whether a car, finance or insurance was the subject of the claim. Many dealers then have to check their systems manually to see whether a deal was done and whether it concerned finance and had PPI. Ms Wagstaffe said: "Often they weren't sold finance or insurance but the amount of time and energy it takes to locate these answers does indeed frustrate dealers no end." Source 1, Source 2

PPI texts appear in top ten list of 'bugbears of modern life'

9th July 2013. Pressure selling and PPI texts have both made an appearance in the top ten list of criticisms of modern life, coming in at number one and number eight respectively. The study, conducted by Skipton Building Society to unearth the top 50 list of British niggles, revealed that 65% of people deemed pressure selling - people repeatedly trying to sell you something you haven't asked about and do not want - the biggest grievance of contemporary lifestyles.

Almost half of participants said they have purposely stopped going to certain places because they felt pressurised to invest in something in the past. Stacey Stothard of Skipton Building Society said it is "really disheartening" to learn that the biggest bugbear for Brits is coming under pressure to buy something.

"There's something to be said for the good old-fashioned values of listening to people and treating them as individuals - and not being pounced on for the purpose of fulfilling sales targets and ultimately satisfying corporate shareholders," she continued. Payment protection insurance (PPI) was in many cases sold using high pressure selling techniques to people who neither wanted nor needed the product.

Other financial grumbles included banks phoning to check personal details or offer unreasonable loans and receiving credit card offers through the post. The rest of the top ten included: spam emails, pushy sales people, foreign call centres, being put on hold, dog mess on the pavement, pot holes in the road, drivers who take up two spaces and getting stuck behind slow drivers. Source

Financial Ombudsman working overtime as banks fail to deal with PPI claims

8th July 2013. Eiopa chairman calls for regulatory action in PPI market The chairman of the European Insurance and Occupational Pensions Authority has urged further analysis of the payment protection insurance (PPI) markets to gauge whether deeper investigation and stronger regulation is needed. Gabriel Bernardino said he "acknowledged that significant consumer protection problems, including mis-selling issues and market imperfections, have occurred in PPI". This follows the news that the Institute of Financial Service (IFS) recently updated its Level 3 Certificate in Regulated Complaints Handling to include fresh content concerning protection products such as PPI. It is hoped this will ease some of the burden on financial regulators such as the Financial Ombudsman Service (FOS), which has been flooded with so many PPI complaints it has been forced to hire extra staff.

IFS chief executive Anne Kiem said: "The inclusion of specialist content that concentrates on complaints arising from protection products recognises the impact that it continues to have on financial services bodies and has been specifically designed in direct response to calls from the industry." A total of £10.1bn has been paid out in compensation to customers who were mis-sold PPI since January 2011.

However, one expert warned that while some customers did not need or want PPI, a number that do require it are getting swept up in the compensation craze. Philip Milton, managing director of Devon-based Philip J Milton & Company, said he believes that "three-quarters of people who have been compensated probably should not have been as they may well have needed the cover. "There are a lot of people jumping on the bandwagon," he added. Source 1, Source 2, Source 3

IFS launches new adviser qualification to deal with PPI claims

5th July 2013. Following the scathing parliamentary commission on banking standards and a torrent of complaints received on a daily basis by struggling Financial Ombudsman Service (FOS), the Institute of Financial Service (IFS) has launched a new adviser qualification to handle payment protection insurance complaints. The IFS has updated its Level 3 Certificate in Regulated Complaints Handling in a bid to alleviate some of the burden on financial regulators. The FOS has been witness to soaring volumes of PPI complaints in recent years as increasing awareness of the financial scandal has led to thousands of complaints pouring in every week. So far, financial institutions have collectively paid out a total of £10.1bn in PPI compensation.* This comes on top of the parliamentary commission on banking standards, which accused banks of poor complaint handling. The qualification, designed for industry bodies that are responsible for regulating complaints handling in retail financial services, includes fresh content concerning protection products including PPI.

IFS chief executive Anne Kiem said that professional qualifications play a "vital" role in improving standards in the financial services industry, ultimately "improving the quality of service offered to customers". She continued: "The inclusion of specialist content that concentrates on complaints arising from protection products recognises the impact that it continues to have on financial services bodies and has been specifically designed in direct response to calls from the industry. "Alongside this, case studies within the course have been updated to include specific recent examples of where problems have arisen." * According to the Financial Conduct Authority (FCA). Source 1, Source 2

PPI claims climb 38% in a year, new FSCS figures reveal

5th July 2013. Figures from the Financial Services Compensation Scheme (FSCS) revealed that it paid out an eye-popping £326m in compensation to consumers in 2012/13, with payment protection insurance claims accounting for a significant part of this. The figures come from the group's Annual Report and Accounts 2012/13 which was published yesterday (4 July). The FSCS was flooded with 62,030 new claims in 2012/2013, marking a 36% decrease on the previous year. However, despite the decline in volume of claims, a dramatic increase in payment protection insurance (PPI) claims was registered. PPI claims stood at 13,800 in 2011/12; however in 2012/13 this figure shot up to 19,035, marking a substantial 38% increase.* More than 85,000 consumers have been helped by the FSCS over the course of the year, turning to the group for protection when firms went bust.

Mark Neale, FSCS Chief Executive says: "FSCS is a force for financial stability. The Scheme plays a vital role in protecting consumers when authorised firms go bust. FSCS protection underpins consumer confidence and, in doing so, contributes to a stable and thriving financial services industry."

He continued: "Research shows that the more aware people are of FSCS, the more confident they are. That is why we work hard to compensate people with valid claims." The FSCS hopes to provide consumers with an improved service and is investing in changes such as submitting claims online to create a more streamlined process - something that will no doubt be appreciated in the often tricky to navigate financial market. * The figures exclude claims relating to Welcome Financial Services Limited. Source

PPI claims top the £10bn mark

5th July 2013. New research indicates that financial institutions have collectively paid out a total of £10.1bn in compensation to customers who were affected by the ongoing Payment Protection Insurance mis-selling scandal. The figure represents an unprecedented benchmark in terms of compensation and illustrates just how large the problem has now become. A number of figures released by the Financial Conduct Authority (FCA) outline the stark reality that the problem may actually be getting worse rather than improving. For example, an analysis of April 2012 alone shows that £424 million was paid out in PPI compensation during this month. This figure dwarfs the £28.6 million which was paid out in April of 2011, which highlights that the scale of the problem may not have reached its peak just yet. This theory is supported by the recent reports that the number of complaints to the Financial Ombudsman Service (FOS) more than doubled in Q3 & Q4 of 2012.

The FOS stated that they recorded a staggering increase of 110% in terms of the number of calls received complaining about banks and other financial lenders during this 6-month period. Approximately 75% (211,855) of the total number of complaints received in this period related to the mis-selling of PPI. This marks a major rise on the 85,562 which were addressed for the same period in 2011. 45,727 new complaints were also recorded compared with the official figure of 12,235 in the previous period, marking the final six months of 2012 as a particularly alarming time for the widespread scandal. Source -->

Financial Ombudsman working overtime as banks fail to deal with PPI claims

26th June 2013. With a staggering 34 million PPI policies mis-sold in what has been described as the biggest consumer financial scandal ever, there is certainly no shortage of work for those dealing with the resulting claims. PPI compensation claims have been flooding in, forcing banks to set aside £14 billion to reimburse customers affected by the scandal. However, while banks have set aside billions of pounds, they have simultaneously been accused of delaying compensation and shifting claims over to the Financial Ombudsman Service (FOS). In the past year alone, nearly two thirds of all cases handled by the FOS were related to the four main banking groups: RBS, Lloyds, Barclays and HSBC.

As a result, the FOS is snowed under with complaints. Natalie Ceeney, head of the FOS, said: "Over the last three years trust in banks has pretty much hit an all-time low and complaint levels have risen staggeringly. "Last year we helped two million people. The year before it was one million, and the year before that it was just under a million. Our workload has gone up astronomically." The single biggest reason for the spike in complaints is PPI, the driving force behind the dramatic increase in FOS staff. "Some of the challenges we've had have been about the right level of resources," Ceeney continued. "So we are recruiting 40 people a week. When I joined three years ago we had 1,200 staff. We've now got 3,500." Source

Lloyds chief executive admits shortcomings but defends bank's actions

25th June 2013. Lloyds Banking Group has come under fire in recent weeks after an undercover reporter working for The Times revealed the shortcomings in a complaint handling centre operated on behalf of the bank by Deloitte. The bank has been contending with a torrent of criticism since the failings came to light, including a question from Treasury Select Committee member John Mann, who accused Lloyds of "trying to avoid paying full and proper compensation" to a number of its customers. In response to this, Lloyds chief executive, António Horta-Osório, said that the banking group had done "absolutely the right thing" to ensure that its customers received the PPI compensation they were entitled to. He cited human error as the reason behind the shortcomings, saying that when it came to handling complaints, it "doesn't mean, like in real life, that you get ten out of ten right".

This is according to The Times, which also reported that Horta-Osório admitted PPI mis-selling by the bank was "totally unacceptable". The undercover journalist revealed that call centre staff for Lloyds Banking Group were encouraged to deny PPI compensation requests so that customers would give up the pursuit. It is not just Lloyds which has been accused of actively delaying compensation: many have been outsourcing responsibility straight onto the regulators, according to the Financial Ombudsman, which has been forced to hire thousands of additional staff to deal with the rising tide of complaints. Chief ombudsman Natalie Ceeney said that "banks had not done a good enough job of regulating cases". Source 1, Source 2

PPI has been 'contested at every stage': ombudsman calls for change in banking culture

18th June 2013. Recordings, transcripts and documents acquired during an undercover investigation into the dealings of PPI complaints by Lloyds Banking Group have been requested by the Financial Conduct Authority (FCA). This is according to The Times, which sent an undercover reporter into the PPI processing unit at Royal Mint Court in central London and discovered that trainees were encouraged to deny or delay compensation. This is despite the fact that Lloyds has set aside £6.8bn to compensate customers who were mis-sold PPI - more than any other bank. The fresh scandal follows comments from chief ombudsman Natalie Ceeney, who told the Telegraph that she wasn't witnessing the "scale of change" that she expected from banks in the wake of the PPI scandal.

She said: "One of the best examples of how to behave is the supermarkets over the horse meat. They bent over backwards to reassure customers and put things straight. "Contrast that with PPI, where banks have contested it at every stage. That's the level of change we need to see. There are some doing it right, there are others behaving appallingly." Customers who took out a PPI policy with Lloyds are being urged to resubmit complaints if they were initially rejected. Martin Lewis, founder of website MoneySavingExpert, said that customers should "certainly ignore a Lloyds rejection". He said: "A rejection is being rejected by the ombudsman, it is not being rejected by the bank - that is part of the dance." Source 1, Source 2, Source 3, Source 4

Lloyds customers urged to resubmit PPI claims

17th June 2013. Following the discovery by an undercover reporter that call centre staff for Lloyds Banking Group were actively encouraged to deny PPI compensation requests, customers who had a PPI claim rejected by the bank have been urged by consumer groups to resubmit complaints. In a dramatic twist on the financial scandal that continues to dominate the headlines, a journalist working for The Times revealed last week that staff were encouraged to delay and deny compensation in the hope that customers would give up if rejected first time. The issue came to light at a complaint handling centre in London operated on behalf of the bank by Deloitte. The financial services firm - which is 39% taxpayer owned - has since had its contract terminated by Lloyds. Martin Lewis, founder of website MoneySavingExpert, said: "If Lloyds have turned you down, you need to fight if you feel you have been mis-sold, certainly ignore a Lloyds rejection.

"A rejection is being rejected by the ombudsman, it is not being rejected by the bank - that is part of the dance." Richard Lloyd, executive director of consumer watchdog Which?, voiced his agreement. "If people are concerned that their claim was not investigated properly by Lloyds, they should resubmit their claim to the bank." He added: "PPI is already the biggest financial mis-selling scandal of all time and this investigation yet again casts doubt on claims by banks that they are cleaning up their own act." Source 1, Source 2

PPI deadline talks break down as lenders and consumer groups clash

12th June 2013. Major differences of opinion between lenders and leading consumer groups have been cited as the reason behind the collapse of PPI deadline talks. Back in January, banks were calling for a PPI deadline to be enforced, which would have meant that consumers would need to lodge PPI complaints and claims before April 2014. Banks have been keen to set a date to bring an end to claims concerning the PPI mis-selling scandal. The enforcement of a deadline would have seen the industry fund a large-scale national advertising campaign to raise awareness among consumers who had not already filed a claim. However, the Financial Services Authority (FSA), which has since been replaced by the Financial Conduct Authority (FCA), said it would only agree to the proposals if it was found to be "in the interests of consumers".

Five months later it emerges that leading consumer groups have finally won the battle against lenders, with the vast divide in opinion preventing any sort of agreement being reached. The negotiations were being led by the British Bankers' Association (BBA), the trade body of the banking industry. One source said: "The whole thing is being wound down as it has become clear there is no way we are going to get an agreement." Failure to reach an agreement could mean that lenders will be contending with several more years of handling PPI compensation claims, which continue to flood banks and the Ombudsman alike. Source 1, Source 2

Lloyds taught PPI complaint handlers to "play the system"

11th June 2013. An undercover reporter who embarked on a recruitment and training process to work as a PPI complaint handler was told that the job could be "morally difficult" and spoke of how he was encouraged to "play the system". The revelations have been described as "massively embarrassing" for Lloyds, which come as MPs and Lords are busy finalising a report on how to improve banking standards. While undergoing training at Royal Mint Court, one of the largest complaint handling units for the bank, the undercover reporter for The Times was told to turn a blind eye to possible fraud by Lloyds salesmen. He was informed that some bank salesman had ticked opt-in boxes on loan agreements to embed PPI into loans regardless of whether the customer wanted it, but that complaint handlers should treat all PPI applications as though they were fully completed by the customer. He was also told that most complainants would give up if their claim was rejected the first time. "Earlier this year we became aware of issues at a PPI complaints handling centre called Royal Mint Court in central London," Lloyds said in a statement. "This site was operated for us by a third party supplier, Deloitte. Following further investigations we took immediate action, and in May concluded our contract with Deloitte and moved to a new supplier." The bank said it believed that some of the comments were "isolated" and that employees are "undergoing retraining" under the guidance of a new supplier. Source 1, Source 2

PPI nuisance calls put six in ten people off answering their phones

10th June 2013. People are being subjected to so many cold calls and unwanted text messages that six in ten (58%) are indisposed to answer their own phone. This is according to consumer group Which?, whose research found that 85% class such calls as an "annoying interruption" and 29% feel intimidated by them. The vast majority of Brits are suffering nuisance calls, with 85% of people receiving an unsolicited call in the past month alone. Of these, one in ten contended with 50 or more unwanted calls last month.

Almost half of people (48%) received calls from accident claim companies, but the majority concerned Payment Protection Insurance (62%). While most PPI claims management firms do not cold call, some seek business via cold calls and unwanted texts. Speaking to The Sunday Telegraph, Which? executive director Richard Lloyd said: "It's outrageous that people are put off answering their phone for fear of getting another nuisance call. "The Government and regulators must act now and do more to cut off unwanted calls and texts." He said that nuisance calls had become a "scourge on people's lives" and said that the consumer group was calling for the Government to toughen up laws on consent and use of personal data and to grant regulators more power to enforce the law. The news comes as further research by Which? reveals that the Telephone Preference Service (TPS) is failing to protect people from nuisance calls. Source 1, Source 2

Lives, income and familes at risk as PPI scandal puts people off insurance

4th June 2013. The PPI mis-selling scandal has made people so nervous about 'protection' insurance that they are being put off it altogether. The claim comes from the principal of Eden Financial Planning, which is based in Cumbria. Julie Bayley said that the PPI scandal has resulted in so much confusion among consumers that they are avoiding buying insurance altogether. Payment protection insurance - otherwise known as PPI - is designed to cover loan repayments should the main source of income suddenly stop, due to illness, accident or job loss.

However, PPI was mis-sold on a huge scale to customers who did not need it, were not eligible to make a claim, or did not want it. Ms Bayley said: "When you think about what PPI was, adding the insurance to the loan as a single premium, and then getting people to repay the loan and the insurance premium each month, is it no wonder that people have been put off."

She added that it had become more difficult to persuade people of the value of protecting themselves and their families. Mark Jones, head of protection for LV=, said: "People can be cynical about insurance products, and the PPI scandal won't have helped." Steve Casey, head of marketing and propositions for Ageas Protect, added: "It is not helped by consumers searching 'income protection' online and seeing PPI appear at the top of search list." UK banks have shelled out a collective £15bn to date on refunding customers who were mis-sold the insurance. Source

Millions missing out on PPI compensation as figures reveal just one in 10 customers have made a claim

4th June 2013. Reminders of the PPI scandal are everywhere - the news, adverts, unwanted text messages - but despite the generous coverage of the mis-sold insurance, many bank customers are still lacking awareness.

According to new figures from the Financial Ombudsman Service (FOS), just one in 10 PPI policies sold have resulted in complaints. The head of the FOS, Natalie Ceeney, said this might be down to the fact that PPI was often embedded in loans and other financial products, leaving customers unaware that they had made this additional purchase.

However, despite this lack of awareness that means millions of customer could still be eligible to make a claim, PPI remains "the most complained about product in history" and floods of complaints have forced the FOS to hire extra staff. Speaking to The Telegraph, Ms Ceeney said: "We will be hiring another 1,000 people the next six months. Even with that happening we have a long queue. It can take up to 18 months to get a decision because we're dealing with the biggest mis-selling scandal in British history. "Too many banks are not doing good enough investigations. We can't do the banks' job for them. We were set up as the last resort not as the body to resolve everything." She added that customers were fully entitled to ask banks whether they had ever been sold PPI, either directly or through a claims management company. Source

Lack of trust in financial firms leaves FOS swamped with PPI complaints

3rd June 2013. The Financial Ombudsman Service (FOS) dealt with a 92% rise in cases last year, as consumer faith in financial firms continues to dwindle. The annual report from the FOS revealed that the organisation received over two million initial inquiries and complaints from customers, which equates to 7,000 per working day. Startlingly high numbers resulted in 508,881 cases being reopened in 2012/13 - a new record for the FOS, which said that PPI compensation claims were the driving force behind the soaring figures, accounting for 74% of complaints.

A spike in complaints following the Libor rate scandal indicates the dramatic increase was provoked by a lack of trust in financial institutions, the ombudsman claimed. It said: "As levels of confidence in financial services have eroded, it is disappointing that we still have not seen any significant improvement in complaints handling.

"Too many financial businesses still seem unable to sort out problems themselves without the ombudsman having to get involved." The ombudsman suggested this was in part due to struggling firms trying to delay payouts. Richard Lloyd, executive director of consumer group Which?, said: "These shocking figures show the banks are still letting their customers down and failing to help consumers with legitimate claims get the compensation they are rightly owed. "The Financial Conduct Authority must take tough action against any bank found dragging its feet in settling complaints. It is time for a big change in banking, with banks that work for customers, not bankers." Source 1, Source 2

PPI Continues To Generate Consumer Complaints

6th October 2012. According to recent reports by the Financial Services Authority (FSA), mis-sold PPI is still the driving force behind the vast majority of consumer complaints, with an increase of more than 50% recently experienced. Data from the first half of the year showed a massive 59% increase in complaints against financial service firms, including high street banks, as the PPI mis-selling scandal continues to dominate headlines. The number of complaints made against general insurance products also suffered heavy growth - up by a horrific 99%. This puts the total number of complaints against these products at 2.5 million of which the vast majority (2.2 million) surrounding PPI. Increases in PPI complaints themselves amounted to 129% in comparison to figures from the previous six months; clear evidence that the mis-selling scandal is far from over.Naturally, banks were a prime target for complaints, with other recent scandals merely adding to the widespread consumer dissatisfaction being experienced throughout the industry.

Year on year, the number of banking complaints has grown by 3% after they received a staggering 2.7 million grievances. Considering that the total number of complaints received across the entire financial industry was only marginally higher at 3.3 million, this is clear evidence that banks need to do more to appease customers. Of course, questions over the legitimacy of complaints must be taken into account when reviewing these findings and considering the increase in fraudulent claims, not all of these complaints may be justified. However, with the Financial Ombudsman Service (FOS) still experiencing a high number of referrals and settling a large number of PPI claims in favour of the applicant, the situation concerning British banking is far from ideal.

PPI Compensation Payouts Could Raise GDP And Ultimately Boost Economy

13th September 2012. The biggest consumer financial scandal of all time may actually be contributing something positive towards the economy. Over the past ten years, many people were sold payment protection insurance that they did not want or need. Salespeople chasing big bonuses were incentivised to mis-sell thousands of people PPI, by intentionally misinforming them or using high-pressure selling techniques. But good things come to those who wait, and after many years of mis-selling, lenders are finally getting their comeuppance and are being forced to pay out millions in compensation.

And now, PPI is actually benefitting the economy: not only are payouts driving up household incomes by an average of £2,750 but they also have the potential to boost GDP. The banks have set aside a whopping £10 billion for those who are expected to claim back their PPI - and cash-strapped Brits are welcoming these refunds with open arms amid the ongoing recession, pay freezes and the soaring cost of living. Consumer group Which? said that £4.8 billion had already been claimed, but that £5 billion remained to be refunded. A £10 billion PPI payout in 2012 could lead to a 0.1% rise in GDP, according to the National Institute of Economic and Social Research (NIESR). NIESR director, Jonathan Portes, commented: "From an economic point of view, the timing of these payouts is quite good. This is a good time for the money to be flowing into the economy."

PPI Claims Witness Another Increase As Scandal Continues

5th September 2012. The latest figures from the Financial Services Authority (FSA) have made unsurprising reading as it is revealed that both PPI claim and payout figures have risen over recent months. According to the data, June saw more than £600 million paid in refunds to affected customers, with a grand total of £5.4 billion repaid since last January. These figures provide further evidence for the proposition that the overall fallout of mis-sold PPI will reach a staggering figure of more than £10 billion - making it the largest financial scandal in living memory.

On top of the increase in payouts, a rise in complaints was also recorded by the FSA, demonstrating how consistently prolific publicity has led consumers to seek the compensation they deserve. The data presented by the FSA was collected from 24 firms who accounted for 96% of PPI complaints. Last year, these figures saw 16 firms make up 92% of PPI claims, showing how more businesses are becoming the subject of this compensatory action as the scandal continues to gather pace. Naturally, there are concerns about the validity of some of these claims, with recent reports detailing how fraudulent claim numbers have also increased. To address this, the Ministry of Justice (MoJ) has issued warnings to claims management companies (CMCs) over their practices, whilst the Financial Ombudsman Service (FOS) will become responsible for handling complaints against CMCs themselves in 2013. Consumers should make sure they select a reputable company to attain the best results.

Only Half of PPI Compensation Repaid as Banks Remain Guilty of Stalling

1st September 2012. Despite the widespread publicity surrounding mis-sold PPI and a high volume of claims, only half of the anticipated compensation payout has been made to customers as banks continue to stall. With the collective bill for mis-sold PPI expected to exceed £9 billion, many UK consumers remain out of pocket as little over half this figure (£5.4 billion) has been paid since the start of 2011. Considered the biggest financial scandal of our time, the number of individuals affected by mis-sold PPI has reached staggering levels.

Whilst consumers can choose to lodge complaints against the product either independently or via a claims management company (CMC) the time taken for their case to be processed will ultimately depend on the actions of the lender or bank from whom they obtained the policy. Unfortunately, recent reports have accused banks of deliberately delaying the claims process in order to postpone compensatory payments. Other lenders have been found guilty of using the compensation money from successful claims to settle debts between themselves and the claimant rather than giving them the money directly. This means that those entitled to financial redress could still be being denied compensation; leaving the situation no closer to a resolution than before. Numerous pleas have been made to improve this situation, with consumer bodies calling for a universal claims procedure to be adopted. If introduced, this is hoped to facilitate the claims process so that banks and lenders have no reason to delay their decisions.

Will PPI Mis-Selling Renew as Supreme Court Rejects Appeal Against Sellers?

29th August 2012. An appeal demanding PPI sellers must inform customers if cheaper cover is available elsewhere has been withdrawn from the Supreme Court, prompting some to question whether this will lead to resurgence in mis-selling cases. PPI was famously mis-sold as a result of poor selling practices which did not adequately inform customers about the product. Some even found the policy had been added to loan and credit card agreements without their knowledge, prompting a multitude of compensation claims to be lodged in the wake of the fallout. Since then, more than £5 billion has been paid in compensation with an estimated £9 billion expected to be paid in total once the situation is fully resolved.

Improvements to banking practices have also been introduced, with stricter regulation enforced to ensure that lenders give their customers sufficient information and guidance when selling any financial product. Some even claimed that brokers offering this cover should inform customers that the policy may be cheaper elsewhere but this appeal has since been withdrawn from the Supreme Court. In the Court of Appeal, Lord Justice Tomlinson stated that brokers were not obligated to offer such information when advising customers. This situation could make it harder for some claimants to pursue financial redress; with one legal practice claiming those seeking court actions against mis-sold PPI could face a "steep uphill battle." Numerous claims against PPI are expected to be dismissed by county court judges as a result, with some questioning whether the decision will also lead to a renewal of mis-selling practices within the industry.

CMCs to Fall Under Jurisdiction of Ombudsman

28th August 2012. Following criticism of poor practices and high fees, claims management companies (CMCs) will now fall under the jurisdiction of the Legal Ombudsman as part of a government decision. CMCs, who are responsible for assisting consumers seek financial redress for mis-sold PPI, have received heavy criticism of late for providing insufficient information or charging extortionate fees. An investigation by consumer body Which? and MoneySavingExpert.com called for more stringent controls to be put in place to monitor this and suggested a universal claims procedure should be adopted to facilitate the claiming process. In response to this, numerous proposals have been made over how the situation can be improved for the benefit of all involved. The government's decision to hand regulatory powers over to the Legal Ombudsman when it comes to dealing with CMCs is recognition of this.

Under the new ruling, the Ombudsman will take responsibility for CMC management from 2013. The Claims Management Regulatory Unit, a division of the Ministry of Justice (MoJ), will still operate but will focus on improving universal claim management standards by working closely with CMCs and other bodies. Those lodging complaints about specific companies will need to direct their case to the Ombudsman who will become responsible for ensuring they receive any compensation they deserve. Anyone claiming for mis-sold PPI can do so either independently or via a CMC. Those choosing the latter option are advised to choose a reputable company who provides all the necessary information in a clear and upfront manner.

Personal Finances Improve As PPI Compensation Hits £10 billion

8th August 2012. Both our bank balances and the economy could be radically improved by ongoing payments for PPI compensation, the National Institute of Economic and Social Research (NIESR) has claimed. With the total fallout of the PPI mis-selling scandal having now breached £10 billion, the amount previously set aside by banks to cover the compensation, this means a substantial amount of money could be reinvested into the economy. The theory behind this is that, with more money at their disposal thanks to successful PPI reclaims, consumers will have greater spending power. This means businesses could experience higher turnovers as a result of increased sales; thus boosting the economy as a whole. Considering the average compensatory payment for successful PPI claims is said to be £3,000, it is clear that such action could drastically improve finances.

Commenting on the situation, Jonathan Portes, Director at the NIESR, announced that "the timing of these payouts is quite good" as it is "a good time for the money to be flowing into the economy". Of course, this opinion is based on the assumption that claimants receive their compensation as a monetary payment. In some cases, PPI compensation is used to settle debts or loans with the bank or financial institution and therefore does not get passed onto the customer. Some organisations have spoken out against this action, with consumer body Which? and Moneysavingexpert.com calling for a universal claims procedure to be adopted. This is hoped to make it easier for consumers to receive their money whilst ensuring claims management companies (CMCs) operate ethically.

No End In Sight As Missold PPI Scandal Continues To Gather Pace

26th July 2012. Despite millions of customers having already reclaimed charges for mis-sold PPI, the scandal is showing no signs of abating as major banks allocate more money to cover compensatory payouts. These additional allocations are expected to be announced by Britain's four main banks, Lloyds Banking Group, HSBC, Royal Bank of Scotland and Barclays, in the next fortnight. According to reports, the banks are expected to reveal that an extra £1 billion has been paid out in charges over recent months. This will push the running total for the missold PPI fallout to almost £8 billion - a figure which was previously expected to represent the total cost of the scandal.

With financial bodies continuing to receive a high volume of complaints, this figure could be easily surpassed by the end of the year - especially when it is considered that missold PPI has led to a 145% increase in compensation claims. This would cement the PPI debacle as one of the biggest financial scandals to afflict the UK in living memory. Of course, this is not the only problem currently being faced by banks. The recent Libor scandal has seen many of these institutions face further investigation from regulatory bodies including the Financial Services Authority (FSA). If these enquiries yield negative results, banks could face additional fines for their unethical and immoral practices. This will not only result in greater expenditures by banks, but will also intensify the feelings of distrust that consumers currently have towards financial institutions.

PPI Reclaim Process Made Easier For Customers

27th June 2012. Following pleas by consumer body Which? and Money Saving Expert, financial service providers have agreed to make the PPI reclaim process easier for customers to understand by providing more detailed online information. The decision means that those affected by the ongoing missold PPI scandal will have clearer access to vital information concerning the product and the reclaims process which they can use to seek compensation for their losses. PPI is a financial product which was mis-sold to millions of British consumers in loan applications and credit agreements over the past ten years. The scandal first caught the public attention in 2005, following investigations by the Citizens Advice Bureau, the Financial Services Authority (FSA) and the Office of Fair Trading (OFT).

Since then, millions of customers have sought compensation for the money they were wrongly charged; leaving the banks and lenders found guilty of immoral selling practices with a collective bill estimated to be in excess of £8 billion. More recent headlines concerning the financial product have seen claim management companies (CMCs) come under scrutiny for the way in which they handle claims. Whilst there's no obligation for customers to file their complaints with these companies, many choose to do so because of the convenience and simplicity which is offered. However, an investigation by Which? and Moneysavingexpert.com found "significant variation" in the amount of information displayed by different firms. This prompted them to call for improvements in the claims process to be made, encouraging companies to provide more detailed information on their websites. This alteration means those reclaiming PPI now have access to a higher level of service, helping them to seek the compensation they are due with as little inconvenience or disruption as possible.

FSA Was 'Ineffective' In Handling of PPI Scandal

21st June 2012. Lord Turner, Chairman of the Financial Services Authority (FSA), has labelled the organisation's handling of situations such as those which surround missold PPI as 'ineffective' in his latest comment. The FSA was one of the first bodies to react to the PPI mis-selling scandal, which has dominated our headlines for the past five years, launching their own official investigation into the situation in 2006. At the same time, the Citizens Advice Bureau lodged an official complaint over the product; an action which sparked outrage amongst customers who were affected and ultimately helping to bring the scandal to public attention. Since then, billions of pounds has been paid in compensation to those seeking redress, with the total provision put aside by banks amounting to a staggering £9 billion.

Yet, despite the large number of successful claims which have been made, Lord Turner's comments accentuate how the scale of the situation was able to escalate due to 'inefficient' measures by the FSA. He attacked firms who wrongfully target consumers who are not entitled to claim compensation, stating that the prevalence of these firms "illustrate the ineffectiveness of the FSA's past approach to conduct regulation." A new report issued by the FSA hopes to rectify this, reforming the way in which the organisation supervises and monitors the conduct of such companies. A complaint for mis-sold PPI can be lodged independently or through a claims management firm. Those choosing the latter option should make sure they select a reputable company to attain the best results.

Nationwide Rakes In Profits Despite PPI Complaints

26th May 2012. Despite being hit with a hefty bill for PPI complaints, Nationwide has experienced a significant growth in profits this year, equating to a 10 per cent rise. The bank claimed complaints over missold PPI policies had "quadrupled in the last six months", contributing to the £103 million bill they have incurred as a result of the fallout. Yet, despite this large outgoing, they still reported an annual profit of £304 million in April - growing by 10 per cent from last year. In particular, increases were noted in the bank's lending, with mortgages increasing by 44 per cent. This equated to £18.4 billion and exceeded the 5 per cent average increase reported for the market as a whole by a vast amount.

Despite the positive figures over their profits, Nationwide used the opportunity to attack claims management companies (CMCs) who are often contacted by consumers to handle PPI complaints and compensatory claims. According to Nationwide, and a number of other institutions, CMCs need to be regulated more stringently as false claims have become more prevalent as the PPI mis-selling scandal has gathered pace. This follows an initiative launched by consumer body Which? and MoneySavingExpert.com which called for a universal claims procedure to be adopted. However, not all bodies have shown support for this call-to-action, with CMCs and the Claims Standards Council both accusing the collaborators of "siding with banks" rather than supporting the victims they claim to be protecting.

PPI Claims Companies Accuse Consumer Bodies Of 'Siding With Banks'

18th May 2012. Following a campaign launched by consumer watchdog Which? and MoneySavingExpert.com against PPI claim procedures, Claims Management Companies (CMCs) have retaliated by accusing these bodies of siding with banks rather than consumers. The two organisations collaborated with the British Bankers' Association, writing a letter to the Ministry of Justice which called for CMCs to be subjected to tighter restrictions when it came to handling claims. Yet, whilst Which? and MoneySavingExpert.com have claimed their actions are motivated by concern for consumers, claims companies have challenged this, labelling their tactics as "extremely aggressive" and detrimental to consumers.

Andrew Wigmore, Policy Director of the Claims Standards Council, explained the organisations were limiting consumers' choice when it came to seeking redress for mis-sold PPI policies. He stated that "their current action to protect the banks [...] shows breathtaking ignorance and a total disrespect for the consumer they profess to protect" before labelling their acts as "utterly disgraceful." Wigmore went on to explain that consumers were well aware of their right to claim compensation independently, making their decision to use a third party a personal choice which they should be entitled to make - but one that he felt consumer bodies such as Which? are trying to prevent.

HSBC Puts Aside More Funds For PPI Compensation

11th May 2012. HSBC has put aside almost £300 million in additional funds to pay for customers who were mis-sold payment protection insurance (PPI), the bank has announced. The bank's total reserves for paying compensation to victims of the PPI scandal now totals £745 million, after it added £290 million to the pot. The move comes shortly after it was announced that the Royal Bank of Scotland (RBS) and Lloyds Bank Group both put aside additional funds of £125 million and £375 million respectively. Since the missold PPI scandal was exposed last year, the majority of leading banks have had to pay out millions in compensation to customers.

But the amount paid out is still just a fraction of the total money put aside by the leading banks to pay for the scandal, which now stands at more than £9 billion. The five largest banks - HSBC, the Royal Bank of Scotland, Lloyds Bank Group, Barclays and Santander - account for more than £7.8 billion of the total. Despite the large number of complaints being lodged against the banks, only around £3 billion of the £9 billion in reserve has actually been paid to customers. Consumer watchdog Which? recently held a summit with some of the country's major banks and financial firms, to help make the PPI reclaim process more efficient. "It is a big step forward to have representatives of all the major banks and the regulators around the table and it is encouraging that action has been agreed to help people get back the £5bn of mis-sold payment protection still available," said Which? Executive Director.

PPI Fallout Costs Barclays Over £1 Billion Following Recent £300 Million Bill

26th April 2012. According to Sky News, Barclays has been forced to pay more than £1 billion for mis-sold PPI as a recent surge in claims added a £300 million bill to their running total. This means the current total cost of the fallout for the bank is £1.3 billion - almost the same amount of compensation paid to PPI victims from various banks during 2011. A recent spike in claims, prompted by the continued publicity of the scandal, led the bank to face a £300 million bill and combined with other difficulties to give the bank a pre-tax loss of £475 million. According to Barclays, an "accounting loss on the value of its own debt" contributed to this loss for the first quarter of the year.

However, despite the apparent losses, the bank still recorded a 22% increase to its pre-tax profits. Once one-off costs had been stripped from the equation, the total pre-tax profit stood at £2.4 billion - higher than the £2 billion profits made last year and higher than the forecasted takings which also registered at £2 billion. Unfortunately, this is not the only PPI related issue which Barclays have come under scrutiny for of late, with their Chief Executive Bob Diamond facing potential backlash for the £17.7 million pay package he received last year. Numerous bodies have already expressed their outrage at this bonus with Pensions & Investment Research Consultants (Pirc) calling for investors to challenge the decision and deny Diamond this hefty bonus. This recent announcement is, therefore, only likely to add further fuel to the fire surrounding mis-sold PPI, with a large number of victims still pursuing compensatory claims.

Financial Industry Vows To Make PPI Claims Easier After First PPI summit

24th April 2012. A summit, which was hosted by consumer watchdogs Which? and MoneySavingExpert, saw the Financial Ombudsman Service (FOS) and all major banks and lenders meet to discuss plans to address the ongoing battle regarding compensatory PPI claims. This battle has been raging for a number of years since the missold PPI scandal was first brought to the public's attention following investigations by the Citizen's Advice Bureau (CAB), Financial Services Authority (FSA) and Office of Fair Trading (OFT) in 2006. These investigations revealed millions of individuals had been wrongly sold payment protection insurance (PPI) with credit card and loan agreements, making it one of the biggest financial scandals in history. Unfortunately, despite the publicity the scandal gained, claims remained hard to obtain for some victims and some customers even found themselves taken advantage of by unscrupulous claims companies. This prompted the decision to hold a summit, with all regulators and bodies involved agreeing to make the claims process easier to manage. Agreed action consists of implementing a standardised claims procedure and encouraging co-operation and communication internally between these bodies and externally with customers.

FSA Sees A Significant Rise In PPI Complaints

20th April 2012. New figures suggest that the number of payment protection insurance (PPI) complaints has actually increased. According to the latest figures from the Financial Services Authority (FSA), the surge in missold PPI complaints and refunds has pushed up the overall level of complaints in the financial services sector by almost 30%. PPI has been commonly mis-sold to a number of consumers on the back of other financial products. In many cases the insurance was not fully explained or considered valid for policyholders. High street banks and lenders have been mis-selling the insurance for the best part of the last decade and the scandal was thrown into the spotlight last year.

At the end of March, the FSA saw a 29% increase in the number of complaints made against the financial services sector. Barclays was shamed as the worst performing single bank, dealing with over 250,000 complaints in the first half of 2011. This increased to 281,000 in the second half of last year as the full force of the missold PPI scandal came to light. Lloyds Banking Group, which holds HBOS and Halifax sub-brands under its arm, attracted the most complaints overall. During the last six months of 2011, Lloyds TSB received 240,000 complaints whilst Bank of Scotland saw a rise of 130,000 to 206,000 over the year. Banks are not alone in mis-selling the produce as insurance firm Aviva opened over 13,000 new complaint files in the last six months of 2011. The FSA is taking action against banks and lenders, forcing them to contact customers who may have been mis-sold the insurance. The number of missold PPI complaints is expected to rise throughout 2012.

PPI Claims Total Grows As Almost 900 Firms Licensed To Offer Compensation Services

20th April 2012. The running total for PPI claims is set to hit new heights over the coming months after 897 firms have been licensed to offer services which aid victims in claiming the compensation they deserve. According to figures, the total value of the PPI fallout is expected to be in the region of £8 billion as more consumers affected by the situation seek the compensation they rightly deserve. Of course, using a claims company will result in the claimant sharing a portion of their settlement with the firm, and this means those involved could stand to make a sizeable profit. In fact, an estimated £2 billion of the compensation paid to consumers is expected to fall into the pockets of lawyers, accountants and businessmen who handle the cases.

Whilst some may be concerned about these fees, reputable companies have taken action to create a universal claims system following the first ever PPI summit, which was held this April. This will make it easier for individuals to process their own claims or to find firms who are capable of handling them instead. For many people, the latter option is the more attractive due to the reduced involvement they need to have - allowing them to seek reparation with minimal interference or disruption to their daily lives. The fact that 897 companies have been granted licences to offer these services also reduces the risk of consumers being led further astray when it comes to their finances. Recent reports have issued numerous warnings over fraudulent services, which have been taking advantage of vulnerable claimants, and having a group of authorised firms could help reduce this.

How To Stop Yourself Becoming A Secondary Victim Of PPI

12th April 2012. Whilst details over the PPI mis-selling scandal are now common knowledge, recent reports suggest that British consumers could be in danger of becoming secondary victims. According to a news report in the Scotsman, a woman was recently conned out of hundreds of pounds by fraudulent individuals claiming to offer her access to compensation for missold PPI. The prevalence of the situation meant the woman was not immediately suspicious - leading her to part with her cash. Following the incident, the Scottish Police issued a statement warning consumers of the dangers of these scam-artists. Like the lenders who went before them, these individuals are taking advantage of consumers' trust and could lead Brits to become victims of missold PPI in more ways than one.

In order to combat this problem, customers are being urged to only use the services of reputable PPI claims companies and to never part with cash when dealing with cold callers or door salesmen. A statement by Action Fraud, the national fraud reporting centre for the UK, explained that "genuine organisations will never cold call you or contact you to ask for personal information" and urged all individuals to "contact the organisation directly before taking any action" to protect against fraudulent services. Those who feel they may have been victims of the PPI mis-selling scandal should not let this deter them from making a claim. Instead, they should make sure they source a reputable claims firm to handle their case in a professional and secure manner.

Legal Cover Becomes The New PPI as FSA Cracks Down on MisSelling

5th April 2012. In the latest scandal to hit the financial industry, the Financial Services Authority (FSA) is warning that legal cover and other insurance add-ons will come under close scrutiny as they launch an investigation into how these products are sold to customers. Their business plan for the coming financial year explained that they had "identified risks with general insurance products that offer poor value for customers who have little prospect of claiming." The FSA also attacked the insurance industry for what it labelled "deficiencies in sales practices" and revealed that many of the extra services offered by insurance firms provide limited or no improvements on existing services which are free to the public. These include services such as legal cover for both car and home insurance policies - common supplements which are added to the basic level of cover for an extra cost.

Addressing the poor value that this offers uninformed customers, the FSA vowed they would "take action against firms that sell these products of poor value and mis-sell [them] to their customers." This means that the FSA will launch an investigation into the way in which these products are managed by firms - reflecting previous action undertaken in reaction to the missold PPI scandal. The backlash of this instance of widespread mis-selling is still being felt today, with millions of consumers thought to have been affected. The PPI mis-selling crisis occurred when individuals were incorrectly sold or offered the cover alongside other financial products such as loans and credit cards. Many later discovered that they did not qualify for the insurance or had been sold it without their knowledge - something which sparked widespread public outrage and resulted in a large number of compensation claims which are still being handled today.

PPI Compensation Boosts Households' Spending Power

23rd March 2012. Compensation payouts for missold PPI are giving households a much-needed boost to their spending power, it has been found. The Office for Budget Responsibility has said recently that consumption in the UK will go up this year, by around 0.5%. This is an improvement on previous predictions. In November last year, consumption in the UK was expected to go up by just 0.1% in 2012. But that has been increased to 0.5%, down in part to the fact that millions of people are receiving compensation from banks for missold PPI (payment protection insurance). Average wages struggled to keep up with the rate of inflation last year, meaning many households were left with heavily reduced spending power.

Average earnings went up by just 1.2% last year - well below the UK's rate of inflation, which was an average of 4.5% across the year. Inflation is starting to slow down, and is currently at 3.4%. Combined with the PPI compensation boost, this development means that many households should see their financial situation improve in the coming months. PPI is a form of insurance designed to protect policyholders financially should they lose their income. But it was found to have been mis-sold to millions of customers by the majority of banks and lenders. Following a high court case last year, all financial institutions have been forced to offer compensation to customers who took out the policy. The amount of compensation paid out has now surpassed £1billion, with millions more set to be paid out in the coming year.

Banks Continue To Drag Heels Over PPI Payments

17th March 2012. Despite many customers receiving letters detailing their entitlement to PPI compensation, reports suggest these payments are still being delayed as banks continue to drag their heels. Approximately 12 million customers have been contacted by banks and lenders about the scandal over recent months but unfortunately, whilst these letters inform customers of their entitlement, the payments remain delayed with some individuals still waiting for the funds months later. This is partly due to the fact that whilst there are guidelines over how long banks can take before responding to a complaint there are no such regulations for payment timeframes. The Financial Services Authority (FSA) who issue these guidelines have admitted their reluctance to instigate new rules to address this concern, claiming the implementation process involved would delay payments further. According to reports, instigating the new rules could take as long as six months and this would hardly give customers the prompt resolution they are looking for.

On top of this, the FSA has revealed that only £2 billion worth of compensation was paid to customers last year - a figure which is thought to represent just one quarter of the £8 billion owed to customers. It is therefore hardly surprising that many customers are still seeking compensation years after the mis-selling scandal was first brought to public attention in 2005. Although claims can be processed independently, the number of individuals using dedicated claims companies has risen over recent months. This is because the process offered by these firms can be seen as more convenient, helping customers to gain the compensation they deserve without leaving them to face what may seem like a never-ending struggle with difficult banks and lenders alone.

PPI Claims Remain High Despite Greater Consumer Confidence In Banks

6th March 2012. According to the latest news surrounding the PPI mis-selling scandal, consumer confidence in banks is growing whilst PPI claims remain high. According to figures, the overall number of complaints has fallen for some banks despite the growing number of PPI claims which are being made. Those commenting on the situation have labelled this as a positive step for banks, suggesting it demonstrates their commitment to rectifying problems and compensating their customers. One bank to have recorded this trend is Barclays, with their overall banking complaints falling by almost a third in the last half of 2011. The total number of complaints received between July and December stood at just over 146,000 - a 31% decrease from the same period in 2010 and a 10% decrease from the 162,611 complaints made in the first half of 2011.

The Chief Executive of Barclays Retail and Business Banking, Antony Jenkins, commented that these figures showed the banks "commitment to put[ting] customers at the heart of [their] business" and named tackling complaints as their "top priority" for the future. In terms of PPI claims, the bank saw a notable increase meaning that as these claims thrive, overall complaints are diminishing. The bank received almost 123,000 complaints on general insurance and pure protection in the second half of 2011 - a 12% increase from the first half of the year and almost double the 59,003 complaints made in the latter half of 2010. These figures not only suggest that this is the perfect time for those affected by the mis-sold PPI to claim compensation, but could indicate that an easier claiming process has increased consumer satisfaction, leading to a reduction in the number of overall banking complaints.

George Osborne Urged To Force Banks To Pay-Up For PPI Errors

2nd March 2012. As Brits continue to seek compensation for mis-sold PPI products, claims agencies are urging Chancellor George Osborne to impose deadlines on banks to force them to pay-up. Claims for mis-sold PPI underwent increases recently as court decisions meant banks were pushed into paying the compensation which their customers rightly deserve. Unfortunately, the time frame of claims varies from case to case and some banks and lenders have been accused of dragging their feet when it comes to making payments. This means that even those who have had their claims settled in their favour have been left waiting for their compensation - meaning that the PPI mis-selling scandal is far from resolved.

Claims agencies, who are reported to be handling the vast majority of customer complaints for mis-sold PPI, have therefore called for this issue to be addressed - urging Osborne to impose deadlines which will prompt a quicker resolution for all involved. 2012 is already expected to be the most expensive year for PPI payments with experts anticipating that more than £4 billion will be paid out to affected customers. This will put the running total of PPI claims in the region of £8 billion. Commenting on the decision to push banks into making faster payments, PPI specialist Michael Pilgrim explained that the action "could accelerate the fiscal stimulus these payments are creating, putting money in consumers' pockets and boosting spending at a time when the economy really needs it".

FSA's PPI Deal Lowers Complaints And Increases Success

1st March 2012. According to recent reports from the Financial Ombudsman Service (FOS), the number of PPI complaints they received at the end of 2011 was lower than expected, suggesting a PPI deal made by the Financial Services Authority (FSA) has been effective. The deal which was struck between the FSA and implicated banks gave lenders an extended period of time in which to handle the backlog of claims which they were struggling to address. This means that banks are able to take the time needed to investigate and resolve cases which they receive, meaning that consumers are no longer reliant on the FOS for their complaints. The Chief Executive and Chief Ombudsman for the FOS, Nathalie Ceeney, showed support of the recent report by stating the body "hope[s] to see all businesses who were involved in PPI mis-selling resolving customer complaints fairly, properly and quickly."

In total, the FOS received 46,700 complaints on PPI between July and December 2011, whilst the six month period preceding this saw more than 98,000 complaints made about the mis-sold product. Nowadays, many of these claims are handled by dedicated claims agencies or firms who are able to determine whether the FOS needs to be consulted. Previous figures have already revealed that 89% of claims for mis-sold PPI are upheld after being rejected by banks. The news that banks are now resolving more of their cases means that claims agencies, and claimants, will now be able to benefit from an easier claiming procedure that may even be quicker - with the use of the FOS usually postponing the claim settlement.

The History of PPI Mis-Selling

23rd February 2012. With many customers still awaiting compensation, the scandal surrounding PPI mis-selling is far from over. Despite the slow progress, developments are being made and the current situation is far more favourable for these seeking reparation - but what has changed? The original detection of the scandal did not occur until nearly a decade ago, when super complaints were lodged by the FSA and the Citizens Advice Bureau. In 2005, the FSA began handling the situation by issuing guilty banks and lenders with penalties and fines. 5 years later, and the FSA published their rules on repayments in 2012. The British Banking Association (BBA) challenged this with court action and despite a ruling which favoured the FSA, vowed to lodge an appeal.

This promise was broken just five months later, when the BBA dropped all legal action in May 2011. It was at this point that the majority of PPI claims were lodged and over £1 billion was paid to claimants in the first ten months of 2011 alone. This created the perfect environment for PPI claims and a number of individuals chose to use PPI claims agencies to accomplish this. Yet despite the improvement, the FSA claims millions of people are still waiting to have their case investigated, whilst those who have been successful may still be waiting for their payment. A PPI specialist explained that banks and lenders must abide by strict deadlines when handling claims, but do not have similar restrictions imposed when it comes to paying up. Speaking on the matter, an FSA spokesman emphasised that "people will get their money" but explained the organisation wants it "done it a way that's right and not rushed" to prevent customers from getting short-changed once again.

Banking complaints down over 30% as Barclays targets further significant reductions

22nd February 2012. Barclays today publishes customer complaint numbers for the 2nd half of 2011 (1 July to 31 December) which show the bank has substantially driven down volumes by addressing the root causes of complaints.

In the banking category there has been a 31% reduction in complaint volumes for the full year 2011 compared to the year before. Figures for the 2nd half of the year at 146,316 are also down 10% versus the first half figure of 162,611 recognising continued momentum in reducing complaints.

The figures demonstrate that Barclays focus on putting the customer at the heart of our business is gaining traction with significant and sustainable reductions in complaint volumes. Barclays acknowledges that complaint volumes are still too high and say they will continue to address complaints at root cause. Barclays is aiming to deliver further significant reductions in the 1st half of 2012 (excluding PPI).

The most significant exception to the overall progress they are making to reduce complaints is in the General Insurance and Pure Protection category, of which the majority of complaints are related to PPI. Excluding these complaints overall volumes of complaints are down 29% in 2011 compared to 2010. Complaints for the 2nd half of 2011 at 158,492 are also down 11% compared to the first half figure of 177,871 (up 12% half on half including PPI).

Antony Jenkins, Chief Executive of Barclays Retail and Business Banking said:“We made a commitment to put customers at the heart of our business and improve customer service. Tackling complaints is our top priority and today’s figures show real sustained progress on delivering on our commitments, with a reduction of over 30% in Banking complaints.

Complaint volumes are just one measure of customer service and satisfaction. Looking at other measures other than FSA Reportable Complaints also show positive improvements in customer service. Barclays UK customer satisfaction ranking has risen from eleventh in 2007, to fourth. Internal surveys also show branch and telephony satisfaction scores hit their highest levels ever in 2011 at 92% and 82% respectively.

89% of FOS Handled Claims Are Upheld After Initial Rejection

8th February 2012. According to data, 89% of FOS handled claims for mis-sold PPI (payment protection insurance) which are rejected by banks and lenders are later upheld. The current state of affairs concerning mis-sold PPI has seen millions of Brits affected, with the estimated bill for UK lenders exceeding £5 billion. This means numerous individuals who were affected by the mis-selling scandal are entitled to claim for the money which they paid, but unfortunately this is not always easy. As banks and lenders stand to lose large sums of money from this fall-out, they are often found to reject claims or to offer 'goodwill' payments which do not reflect the severity of the situation. For consumers, this is far from ideal and many people now choose to use claims agencies instead, being reluctant to place their trust in a band or lender that has already let them down before.

Of claims that are rejected, 89% are later upheld in favour of the claimant - something claims agencies can help with. These firms will handle the claim on behalf of individuals, referring the case to the Financial Ombudsman when necessary. The Financial Ombudsman is an independent service which handles some cases, penalising banks and lenders who delay decisions through an increased fee system they recently announced. Claims agencies can refer cases to this service where necessary, handling the necessary paperwork and procedures for each individual case. This means claimants can obtain the compensation they are entitled to without being inconvenienced by lengthy procedures or apathetic lenders or banks.

PPI Losses To Be Taken From Banking Bonuses

23rd January 2012. According to the Financial Times, banks are being encouraged to take losses caused by the PPI mis-selling scandal from their bonuses. The report revealed how the Financial Services Authority (FSA) had encouraged this action, feeling that banks should reflect the losses which have been incurred through an alteration to their bonuses. Bonus payouts for 2011 are set to be calculated by banks, with the FSA urging them to consider the amount of money spent on compensation for PPI reclaims when making this decision.

FOS face questions over PPI claim changes

15th January 2012. The FOS (Financial Ombudsman Service) face questions from banks over intended changes to their PPI claim system which could see banks face higher bills. The FOS is an independent body which handles PPI claim cases on behalf of claimants, charging banks a set fee per case.

PPI Scandal Continues To Gather Pace As A Record Number Of Cases Remain Unsolved

14th January 2012. New figures have shown that a vast number of mis-sold PPI cases remain unsolved as banks and lenders fail to compensate affected customers.

PPI Consultation Could Impair Protection Industry

13th January 2012. According to Steve Devine, Chairman for the trade body Protect, the current consultation over PPI could have a negative impact on the protection industry if they fail to respond. The Financial Services Authority and Office of Fair Trading are currently consulting over PPI products, following the ongoing scandal which saw millions of consumers mis-sold the product.

Cashflow’s New Year Finance Fixes

4th January 2012. While some insurance, such as income protection or mortgage payment protection may be worth forking out for, others, like credit card payment protection insurance were often mis-sold and unwanted in the first place. Many do not even realise they're paying these premiums... PPI Reclaims News

PPI Policyholders Receive £1 Billion Compensation

21st December 2011. More than £1bn was paid in the first ten months of this year to customers complaining they have been mis-sold PPI, the financial services regulator (FSA) has announced. The month is the most recent for which the figures are available. The compensation was paid by sixteen unnamed firms, accounting for 92pc of PPI complaints in the first half of 2011... PPI Claims News

Ombudsman PPI Claims Soar

21st Novemeber 2011. In its latest industry newsletter, the Ombudsman has described how the organisation had seen the number of PPI complaints climb from less than 1,000 per week to over 3,000 in recent months. Banks and other financial businesses involved have already received a million PPI complaints this year, and the Ombudsman is predicting a similar number for 2012... Ombudsman PPI Claims News

Lloyds In Red After PPI Cost Wipes Out Their Profit

8th Novemeber 2011. The misselling of Payment Protection Insurance (PPI) has put a serious dent in the earnings of Lloyds Banking Group. Overall Lloyds made a loss of £3.85bn. This is mainly because the bank took a hit of £3.2bn on the cost of paying compensation to customers who were wrongly sold PPI... Lloyds PPI Claims News

Tesco PPI: Tesco’s banking arm casts shadow over results

16th October 2011. Tesco has revealed that its push into financial services had suffered twin setbacks, casting a shadow over a 12 percent increase in 1st-half profit achieved in the face of tough UK trading conditions. Tesco took a £57 million charge to cover alleged misselling of payment protection insurance (PPI), a controversial form of loan cover that has become an industry-wide scandal... Tesco PPI Claims News

Barclays tops UK complaints list against banking brands

28th September 2011. More complaints were made about Barclays than any other bank by UK customers in the 1st half of the year, FSA figures show. However, Lloyds Banking Group had larger complaints figures when all its banking brands were added together. Other brands high on the list include Santander and NatWest, using figures released in recent weeks by banks... Barclays Complaints News

Payment Protection Scandal Rumbles On

18th September 2011. Millions of customers have now realised that for many years banks have made a killing from selling expensive PPI to people taking out loans – whether or not it was appropriate. It became so profitable for banks to sell PPI that many customers ended up paying for it without even realising... Bank PPI Claims News

Banks pay out £215m in PPI refund claims

3rd September 2011. Barclays has allocated £1bn to cover compensation claims over PPI. The financial sector paid out £215m in compensation to victims of the PPI mis-selling scandal in the 1st half of the year, the FSA said. The industry returned £102m in May and June after the British Bankers Association (BBA) lost its High Court challenge against PPI compensation rules being applied retrospectively, the City regulator said... FSA Claims News

NatWest Customer Claims Rise by 75 Percent

1st September 2011. Complaints for insurance-related products at Nat West rose during the past year, increasing by 227 percent. PPI accounted for 31 percent and 47 percent of all complaints at NatWest and RBS respectively. RBS said earlier this year it had set aside £850 million to pay PPI claims... NatWest Claims News

PPI claims rise at RBS group

1st September 2011. The RBS group, including NatWest, has set aside £850m to pay its PPI mis-selling claims bill. Claims for the mis-selling of payment protection insurance (PPI) have surged at RBS and NatWest. In the first half of the year, PPI gripes made up 31 percent of all NatWest complaints and 47 percent of those to RBS. They pushed total NatWest complaints up 24 percent to 147,109 and RBS complaints up 27 percent to 68,414... RBS PPI Claims News

HSBC risks FSA action after missing PPI claims deadline

31st August 2011. HSBC looks set incur the wrath of the Financial Services Authority (FSA) after missing the deadline to clear its backlog of PPI misselling claims... HSBC PPI Claims News

Barclays: PPI complaints 'To Keep Rising'

9th August 2011. Barclays was one of the first to say it would settle PPI claims. Barclays Bank is expecting PPI claims to continue to rise after a 93% increase in the 1st half of the year. Barclays says that PPI claims had soared after banks lost their legal challenge on PPI rules in April. It received over 73,000 insurance claims, mostly about PPI, up from 38,000 in the same period of 2010. Overall, Barclays saw a 14% drop in complaints about its services... Barclays PPI Claims News

Northern Bank Records £90m Losses

9th August 2011. Northern Bank has recorded pre-tax losses of more than £90 million in the first six months of the year. The bank was again affected by costs associated with bad debts, absorbing around £112 million in loan impairment charges. It would have made a profit of £27.5 million if it was not for those charges and an additional £6 million set aside for potential PPI claims... Northern Bank PPI Claims News

Financial Ombudsman Service reports record-breaking financial claim figures

2nd August 2011. The Consumer watchdog Financial Ombudsman Service saw a record number of financial services claims - 81,000 in the quarter to June - double the amount last year. Complaints about PPI accounted for the majority, or 69%, but mortgage complaints crept up to 2.5% in fourth place, after credit cards at 7% and current accounts at 4%... Ombudsman PPI Claims News

The City braces itself for dip in banks' profits

31st July 2011. The big four banks will bear the scars of the PPI scandal this week when they are expected to unveil slipping half year profits. Lloyds, Barclays, RBS and HSBC are expected to show a weak 6-month period... Bank profits: PPI Claims News

PPI charge hits Santander UK profits

27th July 2011. Santander UK has said that it has set aside more than half a billion pounds to cover the costs of PPI claims. Profits after tax and the PPI charge were £300 million. Santander is the latest bank to reveal its PPI charge after Lloyds made a provision of £3.2 billion, RBS set aside £850 million, Barclays £1 billion and HSBC earmarked £270 million... Santander PPI Claims News

Corporate giants must not fob off victims

24th July 2011. The Arch Cru fiasco is a blot on the financial services industry landscape and joins the long list of shame including the recent mis-selling of PPI and the split capital investment trust scandal of the late nineties. Though its impact is nowhere near on the scale of PPI or splits, it does not mean that those investors caught up in this financial disaster should be forgotten... Arch Cru News

Financial compensation payments increase

1st July 2011. The Financial Services Compensation Scheme (FSCS) annual report showed that it paid out £535m, driven partly by the failure of Keydata and as a result of PPI claims. The scheme is expecting a large volume of claims relating to PPI in the coming year, after 20% of new claims in the last financial year were about PPI. Some sellers of the PPI insurance, which in many cases was missold, subsequently went bust, leading to the claims... FSCS PPI Claims

FCA will have "lower risk tolerance" than FSA

26th June 2011. The FSA said the incoming regulator, the FCA, would have powers to spot and eliminate issues earlier: "In response to the misselling of PPI, the FSA has intervened robustly to secure redress of consumer detriment... FSA PPI

Which PPI: PPI scandal: BBA says "We did nothing wrong"

30th June 2011. Nearly 2 months after abandoning its legal battle over PPI misselling, the British Bankers' Association (BBA) is still trying to defend the banks behaviour. "We felt we had complied entirely of what was required," the BBA, told the audience at an event hosted by consumer group Which?... Which PPI: BBA PPI Claims

Manchester: Misselling of PPI sparks complaints to Ombudsman

28th June 2011. Claims over misselling of PPI and excessive current account charges sparked a surge in the number of complaint claims to the Financial Ombudsman Service (FOS) by people living in Greater Manchester in the 12 months to March... Manchester PPI Claims

FSA Bid To Nip Dodgy Financial Products In The Bud

26th June 2011. A bugbear that sparked concern for the FSA was the mis-selling of PPI. A vigilant approach to the monitoring of investment products would guard against a repeat performance of such a scheme. In the case of PPI, it took several years to achieve appropriate redress for consumers... FSA PPI

BBA Comment on PPI Judicial Review

24th June 2011. The British Bankers' Association comments on the PPI misselling judicial review saying "We did what our members required. The BBA did not sit in a room and decide it was going to take a case, the industry decided that a case needed to be taken because some of what was being proposed by the FSA in the way that a bank or any other seller of PPI had delivered cases, was retrospective. In the end where you have a legal uncertainty ultimately you have to go to court"... BBA Comment on PPI

Data management rules must be upheld for PPI complainants

22nd June 2011. The Information Commissioner's Office has said that banks need to do more to fulfil their obligations to give customers access to their records. Their comments were prompted by the recent ruling into the mis-selling of PPI which deems all customers are entitled to compensation if a bank's product was mis-sold. This has created a surge in customers requesting access to the information banks hold about them... Bank PPI Data News

Banks under pressure to follow Barclays' PPI claims approach

18th June 2011. Barclays' PPI compensation claims offer should be followed by Lloyds, RBS and HSBC, says Which chief executive. Rival banks, including HSBC, RBS and Lloyds have been urged to follow Barclays's lead over PPI compensation claims... Barclays PPI Claims

FSA grants HSBC extension for PPI complaints

16th June 2011. The Financial Services Authority (FSA) has granted HSBC a temporary extension to complete processing PPI claims. The FSA has suspended its normal 8 week PPI claims complaints deadline for HSBC along with RBS, Barclays and Lloyds... HSBC PPI Claims

FSA grants temporary extension for some PPI complaints

13th June 2011. The Financial Services Authority (FSA) today agreed to temporary arrangements for Barclays, Lloyds Banking Group and RBS to handle PPI complaints. The arrangements extend the time periods the firms have to deal with their backlog of stayed PPI complaints and the high volume of new complaints on PPI. These arrangements have been put in place to ensure that the firms are able to handle the PPI complaints properly... FSA PPI Claims

Banks should follow Barclays' lead on PPI, says Which?

13th June 2011. As Barclays announces that it will be compensating customers who were mis-sold Payment Protection Insurance (PPI) on a no questions asked basis, Which says: "Banks have a lot to do to re-build their reputation after over a decade of misselling PPI and then mishandling complaints about it. It's fantastic to see Barclays stepping up in this way, acknowledging their mistakes and refunding customers what they're owed, no questions asked"... Which PPI Claims

Barclays Agrees to Pay Customers PPI Claims

13th June 2011. Barclays bank will reimburse the full PPI premiums plus 8 percent interest to customers whose claims were put on hold during the banks' court challenge. Barclays will compensate customers sold PPI without being told they could buy it from another lender, the bank said today. The BBA, the banking industry group, lost a court challenge in April to the FSA's PPI guidelines... Barclays PPI Claims

PPI for unemployment

6th June 2011. Mis-selling of expensive PPI for unemployment alongside bank loan products has been rife. Lenders such as Alliance & Leicester (now owned by Santander) and HFC Bank have had huge fines. Moreover, the cliche of "if you can pick up the pen to fill in the claim form, you're well enough to go back to work", means payments are not always protected... Unemployment PPI

PPI broker collapses in misselling scandal

1st June 2011. Wilmslow Financial Services (WFS) had been managing the wave of claims lodged against it from former clients who had taken out PPI alongside loans with Freedom Finance. The company ceased to offer new loans last year... PPI broker collapses

PPI claims may trigger bank staff crisis

23rd May 2011. Banks may need to re-deploy key staff from their mortgage departments to handle mis-sold payment protection insurance claims, according to a customer complaints handling expert. Banks are reportedly looking to take on 6,000 staff as well as redistribute existing employees to cope with the high volume of PPI claims expected... Bank PPI Claims Staff Crisis

Clydesdale adds extra £100m for PPI claims

20th May 2011. Clydesdale Bank and its sister UK operation, Yorkshire Bank, yesterday revealed they will take an extra £100 million provision against the misselling of PPI... Clydesdale and Yorkshire Bank PPI Claims

Lloyds considers clawing back bonuses over PPI provision

19th May 2011. Lloyds are believed to be considering offsetting some of its provision for payment protection insurance (PPI) mis-sales by clawing back bonuses... Lloyds PPI Claims

PPI complainants may miss claims deadline

18th May 2011. Thousands of people missold PPI could lose out on compensation if they miss a complaints claim deadline. Some complainants may be able to reissue their PPI claim even if they've previously had it rejected and not taken it to the ombudsman... PPI Claims Deadlines

Current account fees loom as banks fix £10 billion PPI claims hole

15th May 2011. Banks could be gearing up to pile on the charges misery for millions of customers as they look to recover the estimated £10 billion cost of payment protection insurance (PPI) claims... Banks PPI Claims

Banks to hire 6,000 to handle PPI Claims

11th May 2011. Lloyds, RBS, HSBC and Barclays are facing massive staff costs and admit £5bn is needed to compensate PPI customers. Lloyds is among the High Street banks facing huge staff costs for dealing with customers over missold PPI, and has announced a £3.2bn provision. The banks are preparing to hire up to 6,000 workers to deal with claims complaints from millions of customers wrongly sold PPI... Banks PPI Claims

HSBC first quarter profit hit by PPI claims provision

10th May 2011. HSBC's profits fell 14pc in the 1st 3 three months of the year, as the bank was hit with a provision to cover compensation claims for customers mis-sold PPI and a series of restructuring charges... HSBC PPI Claims

Press Release: Citizens Advice response to BBA announcement on PPI Claims

9th May 2011. The Citizens Advice (formerly know as Citizens Advice Bureau) has said: "At long last the banks have decided to do the right thing in accepting that they must compensate the huge number of customers who were missold PPI policies that were far too expensive and completely unsuitable for their needs." They continued, "It is now up to the banks to deal with claims quickly. The onus should be on them to contact all those affected rather than wait for customers to claim. It's also vital that both banks and regulators learn the lessons of PPI to ensure a similar scandal on this scale cannot be allowed to happen again." In September 2005 Citizens Advice made a super complaint to the Office of Fair Trading (OFT), calling on them to launch an investigation into the PPI business, which, at that time had an estimated 20 million policies in force. Protection racket CAB evidence on the cost and effectiveness of payment protection insurance, the report on which the super complaint was based, is available on the Citizens Advice website: ... Citizens Advice PPI Claims

Millions in line for PPI claims redress

9th May 2011. More than 3 million people are in line for compensation after the banks abandon legal battle over the mis-selling of PPI... PPI Claims

RBS hits out at Lloyds over cave-in on PPI

6th May 2011. RBS has taken a swipe at Lloyds over its decision to break ranks over the PPI mis-selling scandal. RBS said their fellow lender was wrong to withdraw from a possible challenge over a PPI ruling, which is expected to cost UK banks £9 billion... RBS PPI Claims

UK bank PPI claims costs could rise to £10bn

6th May 2011. Bankers suggest PPI claims payments and costs could rise to £10bn, more than double the FSA's original estimate of £4.2bn. Lloyds has made a provision of £3.2bn for PPI claims... Banks PPI Claims

RBS cannot estimate total PPI claims bill

6th May 2011. RBS said today it could not reliably estimate total liabilities for PPI sales. The announcement comes the day after Lloyds said it had made a provision of £3.2bn for PPI claims... RBS PPI Claims

Lloyds will settle PPI claims

5th May 2011. Lloyds have announced that it will settle PPI claims, raising consumer hopes that other high street banks may soon do the same. The bank has pulled out of legal action to stop the payout and will re-open all PPI claim cases currently on hold... Lloyds PPI claims

FSA victory heralds end of unfair PPI practices

3rd May 2011. The failure of banks to force a judicial review of the Financial Services Authority's payment protection insurance rule changes last month is widely viewed as a victory for consumer protection. In September 2009 the FSA revealed a package of tough measures to protect consumers in the PPI market and ensure they were better treated when buying the insurance or complaining about it... FSA PPI claims

Which PPI: Which? calls on banks to follow Lloyds in admitting PPI defeat

5th May 2011. As Lloyds Banking Group reveals that it's withdrawn from the legal dispute with the FSA over PPI and has set aside £3.2bn to repay customers who were missold to, Which? executive director, Richard Lloyd, says: This is great news for the millions of Lloyds customers who have been mis-sold PPI. It is refreshing to see a bank break ranks from its peers and do the right thing by its customers... News: Which PPI: Lloyds PPI Claims

Press Release: Citizens Advice response to Lloyds announcement on PPI

5th May 2011. Citizens Advice Chief Executive said: "We are really pleased to hear today that Lloyds is planning to settle PPI claims where redress is appropriate, after discussions with the FSA. We hope that other banks follow suit and customers will finallybeawarded the compensation they are due for mis-sold PPI policies that were far too expensive and completely unsuitable for their needs." In 2005 Citizens Advice made a super complaint to the Office of Fair Trading (OFT), calling on them to launch an investigation into the PPI business, which at that time had an estimated 20 million policies in force and produced annual revenue in excess of £5 billion. Protection racket CAB evidence on the cost and effectiveness of payment protection insurance, the report on which the super complaint was based, is available on the Citizens Advice website:... News: Citizens Advice

Will banks fight High Court over mis-sold PPI ruling?

2nd May 2011. Banks are holding crunch meetings with their lawyers this week to decide whether to carry on their fight to overturn hundreds of thousands of complaints about mis-sold payment protection insurance. The British Bankers' Association has just 9 days to ask for permission to appeal after the High Court last month rejected its claim that new rules for handling complaints about the mis-selling of PPI were unlawful... Banks PPI Claims

Aviva develops PPI alternative

28th April 2011. Aviva has developed an alternative PPI product in a bid to distance its offering from the damaged reputation of the PPI sector... Aviva PPI Alternative

FSA praises PPI ruling as victory for customers

28th April 2011. The high court decision to dismiss the banks' legal challenge "signals the end of years of poor PPI complaint handling", according to the FSA. In a statement following the decision to reject the appeal brought against the regulator's PPI measures, the FSA said the ruling would trigger a improvement in the way customers are treated when complaining about missold PPI... FSA expects improvement in PPI claims handling

Will bank PPI defeat help consumers?

27th April 2011. At the time of writing, the banks are mulling whether to mount an appeal after they lost their judicial review against an FSA ruling on PPI... Banks may appeal PPI refunds

Banks fight refunds in £3.2bn PPI ruling

21st April 2011. The judicial review's decision against the banks could cost the industry up to £3.2bn in compensation paid out to customers whom the FSA says could have been mis-sold PPI, cover that can take over the payment of a loan for a period should the borrower lose their job... Banks fight PPI refunds

PPI: Banks Lose Battle Against FSA

20th April 2011. Britain's banks have lost their fight against tighter rules on the sale of payment protection insurance (PPI) and face a bill estimated at £4.5bn... Banks Lose PPI battle Against FSA

PPI Selling Point

14th April 2011. As new rules on the sale of PPI insurance come into play, Money Marketing asks if this will mean an end to the problems that have dogged the sector. The Competition Commission's new rules for the sale of PPI came into effect last week. This marked the end of a long, drawn-out struggle to change the way PPI is sold (or previously missold)... Missold PPI

Record Claims for Compensation Over PPI

30th March 2011. New figures released by the Financial Services Authority (FSA) show that complaints made in the second half of 2010 about PPI increased by 63%. Here we take a look at the mis-selling of PPI. The last six months of 2010 saw 434,596 complaints made about PPI. ... FSA PPI Mis-Selling Claims

Competition Commission lays down rules over sale of PPI

28th March 2011. The Competition Commission (CC) has published a list of requirements relating to the sale of payment protection insurance (PPI) in a bid to remedy the point of sale issues that have dogged he sector. One requirement is the commission of independent mystery shopping exercises by the largest PPI providers... PPI Mystery Shopping

Barclays PPI Misselling Claims

18th March 2011. The controversy surrounding payment protection insurance (PPI) dates back to 1998 when Which? magazine published a report alleging that policies were regularly being mis-sold to consumers. It claimed customers who bought PPI - which is used to cover payments on credit cards, loans and mortgages... News: Barclays PPI Misselling Claims

PPI misselling has increased FSCS levies 70-fold

17th March 2011. PPI misselling has caused a 70-fold increase in Financial Services Compensation Scheme levies for the insurance intermediary sub-class, according to the British Insurance Brokers Association... News: PPI Misselling Claims

First PPI, and now banks overcharge for life cover

16th March 2011. Life Insurance with your mortgage could cost an extra £300 a year. Banks have been accused of selling homebuyers overpriced life insurance when they sign up for a mortgage... News: Banks Overcharge for Life Insurance

PPI claims bill could hit £4bn

8th March 2011. An MP has raised the prospect that the overall liability for PPI claims could reach £4bn. The figure came at an evidence meeting concerning PPI misselling of the All Parliamentary Group on Insurance and Financial Services held in the Commons... News: PPI Claims Evidence Meeting

PPI claims industry should not have to stump up cash for FOS

8th March 2011. PPI mis-selling claims make up 25% of the record number of cases being referred to the Ombudsman and many are lodged by claim management companies, seeking compensation on a no win, no fee basis... News: Ombudsman PPI Claims

Banks back in the firing line this week over PPI misselling

5th March 2011. The Financial Ombudsman Service (FOS) published its latest figures on complaints, prompting consumer group Which? to claim they showed "the need for a fundamental overhaul to the way many banks pay their staff". The RBS told The Herald that PPI policy figures... News: Ombudsman PPI Claims

Welcome Finance PPI claims taken over by FSCS

2nd March 2011. The Financial Services Compensation Scheme (FSCS) is taking over PPI claims against Welcome Finance. The FSCS said Welcome Finance was effectively insolvent. Welcome Finance had sold 500,000 PPI policies... News: Welcome Finance PPI Claims

Ombudsman predicts rise in PPI complaints

27th February 2011. PPI claims to soar. PPI complaints are expected to rise dramatically in 2011, according to the Financial Ombudsman Service. The FOS estimates that it will deal with 40 percent more PPI claims this year than in 2010. The Ombudsman believes that it will have to deal with 68,000 complaints this year as more people challenge their provider over missold PPI policies. PPI is often sold... News: Which? PPI Claims

Lloyds receives 70% jump in PPI claims

23rd February 2011. The number of PPI claims received by Lloyds Banking Group jumped by almost 70 percent in the 2nd half of last year in a sign of the rapidly escalating problem banks face over the controversial loan cover. Lloyds, one of the biggest providers of PPI, said that 148,300 customers had complained about the product in the final six months of 2010, compared with 87,688 in the first half... News: Lloyds PPI Claims

ABI questions need for FOS levy increase to cover PPI claims

22nd February 2011. The Association of British Insurers has called into question whether the Financial Ombudsman Service (FOS) needs to raise the levy to cover the costs of future PPI claim complaints. Last month the Ombudsman outlined plans to request an increase of up to £30m in the levy if firms stop paying case fees pending the outcome of the BBA judicial review into PPI... News: Ombudsman PPI Claims

Ombudsman names and shames PPI as its biggest offender

17th February 2011. Half of the complaints made to the Financial Ombudsman Service in the last quarter of 2010 were in relation to PPI. Record numbers of complaints recorded by FOS, which totalled 25,000 in the three-month period, came with a warning that this would affect the levy paid by businesses to the Ombudsman... News: Ombudsman PPI Claims

PPI claims held up as legal review rumbles on

16th February 2011. Consumer complaints about PPI are being held up as firms refuse to co-operate as a legal review continues. Recent PPI claims figures from the Financial Ombudsman Service (FOS) show that the number of PPI cases resolved in favour of consumers is now 66%. PPI insurance is a policy taken out alongside various forms of finance, such as credit cards and mortgages... News: Ombudsman PPI Claims

AMII slams FSCS levy over PPI claims levy

10th February 2011. The Association of Medical Insurance Intermediaries (Amii) has condemned the proposed Financial Services Compensation Scheme (FSCS) levy as unfair, excessive and totally inappropriate. Amii, claimed the increase is on top of a massive eight-fold increase last year and is mainly a result of compensation claims for PPI misselling... News: FSCS PPI Claims

PPI claims still rising

10th February 2011. PPI claims have increased further and now make up half the workload of the Financial Ombudsman Service (FOS). The FOS received 24,955 PPI complaints in the last 3 months of 2010. That was 50 percent of the total number of complaints the FOS had received and nearly twice the number lodged with it 6 months earlier. PPI is... News: FOS PPI Claims

EMCAS in management buyout

10th February 2011. Management buyout been completed at EMC Advisory Services (EMCAS). EMCAS specialises in handling consumer claims. Catalyst Corporate Finance advised on the deal commenting, Initially, the owners of EMCAS sought our advice on their future options to realise value and reduce their involvement in the business... News: EMCAS PPI Claims

Victims of PPI miss-selling now hit by payment delay

2nd February 2011. Victims of PPI miss-selling have had a tough few years, but are now suffering double ignominy due to the utter contempt shown towards them by banks. Not only were they deviously sold missold PPI... News: Bank PPI Claims

Victims of PPI miss-selling now hit by payment delay

2nd February 2011. Victims of PPI miss-selling have had a tough few years, but are now suffering double ignominy due to the utter contempt shown towards them by banks. Not only were they deviously sold missold PPI... News: Bank PPI Claims

Which? blasts banks of PPI review

28th January 2011. The British Bankers' Association's (BBA) decision to contest new rules on PPI refund complaints has been criticised by consumer watchdog Which?. A Judicial Review over the Financial Services Authority new rules on PPI, brought by the BBA, has begun at the High Court. Under the rules, customers who have been missold PPI in the past will be able to claim refunds from their bank... News: Which PPI Claims

Martin Lewis appears on ITV Daybreak

28th January 2011. Money Saving Expert Martin Lewis has appeared on ITV Daybreak discussing PPI. He says "the banks are revolting. They're taking the regulator, the FSA, to court in a case which could see the future of billions of pounds worth of mis-sold PPI decided.... News: Martin Lewis ITV Daybreak

BBA sees new PPI rules as unlawful

27th January 2011. UK banks at the centre of a high court test case battle over the alleged misselling of PPI have warned that compensation could reach £3bn. The court was told at the outset of the 4 day PPI judicial review that if the banks accept that they missold PPI, then they must compensate the customers.... News: BBA PPI Claims Judicial Review

PPI scandal spanned three decades

27th January 2011. The PPI saga began in the 90s. Now the story of the PPI misselling scandal reaches its final chapter at the High Court in London. In 1998 the issue of PPI being a poor-value product because of expense and exclusions was first raised in Which? magazine... News: PPI Claims Scandal

AMI says firms should cooperate on PPI cases

17th January 2011. The Association of Mortgage Intermediaries has urged firms to co-operate over PPI claims. The Ombudsman warned last week that its reserves could be exhausted within six weeks if businesses continue to be uncooperative with PPI claims. The FOS says that as a result its caseload has increased and it is receiving 2,500 PPI claims a week, which is putting a strain on its resources... News: Ombudsman PPI Claims

FOS prepares for PPI claims caseload surge

12th January 2011. The Financial Ombudsman Service (FOS) is preparing for another rise in its PPI claims caseload. In the current financial year, PPI refund disputes have risen 40%. Many PPI refund disputes are currently on hold following the decision by the British Bankers Association to issue judicial review proceedings in relation to both the Financial Services Authority's PPI claims complaints-handling guidance, and the FOS with regard to information on its website. Once the outcome of the proceedings is known, the Ombudsman expects a rise in the number of PPI cases being referred... News: Ombudsman PPI Claims

PPI claims cases damage Ombudsman reserves

10th January 2011. The Financial Ombudsman Service has said its reserves have been significantly reduced after a 40% jump in the number of PPI claims it handled. The group expects to receive around 68,000 PPI claims during the 2010/2011 financial year. It said the workload was significantly higher than the 46,000 PPI claims... News: Ombudsman PPI Claims

Leaked letter reveals banks' dirty tricks on PPI claims

9th January 2011. HSBC is deliberately stalling PPI compensation claims at the Ombudsman for mis-sold debt insurance, a leaked letter seen by Martin Lewis's MoneySavingExpert.com reveals. The banking giant is withholding vital information from the independent Financial Ombudsman Service to help it settle PPI claim refund disputes... News: Martin Lewis / Money Savings Expert PPI Claims

Providers hand out £40m in MPPI refund claims

21st December 2010. Providers of mortgage payment protection insurance have refunded a total of around £40m to consumers as part of redress measures agreed with the FSA last year. The FSA entered into an agreement with MPPI firms... News: MPPI Claim Complaints

PPI claims stalled by banks, Ombudsman reveals

14th December 2010. Thousands face PPI claim delays. Some banks are stalling on dealing with customers' PPI claims, the Financial Ombudsman Service (FOS) says. The FOS said the banks were refusing to handle the PPI claims within the required eight weeks... News: FOS PPI Claim Complaints

UK Banks defy FSA on new PPI rules

6th December 2010. Banks are putting up a desperate fight to hold on to an estimated £2 billion in mis-sold PPI by flouting new rules that could mean compensation for around three million victims. New FSA regulations, that came into effect last Wednesday, force banks to review past sales of PPI... News: Martin Lweis / Money Savings Expert PPI Claim Complaints

Banks shun FSA PPI insurance warning

4th December 2010. Lloyds Banking Group and Royal Bank of Scotland are both putting refund claims and complaints over alleged misselling of PPI on hold, despite a warning from the FSA that it will crack down on banks that fail to follow new PPI guidelines... News: Bank PPI Claims

Banks flout PPI sales rules

1st December 2010. High Street banks face huge fines for flouting tougher rules on handling PPI insurance claims. PPI was sold with loans and credit cards as a safety net to protect people who become unemployed or too sick to work... News: Bank PPI Claims

Banks defy FSA on PPI claims rules

26th November 2010. Lenders, including government-backed banks, are refusing to adopt the new standards laid out for dealing with PPI claims. New guidance for PPI claims... News: FSA PPI Compensation

FSA Clarifies PPI Guidelines After Banking Challenge

24th November 2010. The UK's Financial Services Authority clarified rules on how to treat consumer claims about wrongly sold PPI in response to a judicial review sought by the British Bankers' Association... News: FSA PPI Compensation

New rules will not reduce the number of suitable sales of PPI

16th November 2010. Compliance with new FSA rules will not lead to a reduction in the number of legitimate sales of PPI, it has been claimed. The FSA has announced new rules that are likely to see banks pay out millions in PPI claims compensation to customers who have been mis-sold PPI packages... News: FSA PPI Claims

Wrongly Sold PPI Claims

15th November 2010. There are time limits for claiming your wrongly sold PPI compensation - it's vital you waste no time. Find out how much you are owed... News: Wrongly Sold PPI

FSA vows to act on products similar to PPI

11th November 2010. The FSA is keeping an eye on modified versions of PPI insurance. The director of the insurance sector department of the FSA said... News: FSA PPI Sales Regulation

FOS says PPI claims complaints jumped 11% in Q3

10th November 2010. PPI claims continues to top the Financial Ombudsman's Service (FOS) product complaints list, attracting 11% more claims in the three months to 30 September versus the previous quarter. PPI refunds gripes made up 45% of the FOS' workload... News: Ombudsman PPI Claims Complaints

Ombudsman prepares for PPI claims

4th November 2010. The Financial Ombudsman Service (FOS) is gearing up for a rise in PPI claims after banks put the processing of 1000s of claims on hold. The Ombudsman, which deals with PPI claims that can not be resolved between financial business and customers, is planning to reallocate staff ahead of an expected spike in PPI complaints... News: Ombudsman PPI Claims

UK banks face £5 billion PPI claims

27th October 2010. Lloyds and the next four biggest UK retail banks could have to pay out 5.1 billion pounds in PPI claims under a worst case scenario for them. Under a base case, this could lead to RBS and HSBC having to pay out about 400 million pounds each and Barclays and Santander each face payouts of just over 300 million in PPI claims... News: UK Banks PPI Claims

Lloyds could face £1bn claims for PPI misselling

26th October 2010. Analysts claim that Lloyds are vulnerable to £1bn of PPI claims after the banks were found guilty of overcharging and misselling customers PPI insurance on their credit cards and loans... News: Lloyds PPI Claims

Moneysavingexpert.com founder Martin Lewis warns on access to advice

21st October 2010. Martin Lewis of Moneysavingexpert.com said there is a lack of understanding of the advice landscape among consumers, adding that some people went to banks and were sold PPI thinking that the commission-incentivised seller was an adviser... News: Moneysavingexpert.com PPI Sales

Wrongly Sold PPI Claims

16th October 2010. There are time limits for claiming your wrongly sold PPI compensation - it's vital you waste no time. Find out how much you are owed... News: Claim PPI Refunds

PPI point-of-sale ban will go ahead

16th October 2010. At a time when PPI claim complaints are high in the news, the Competition Commission has now overturned an appeal by Barclays over PPI sales. There's to be a ban on the sale of PPI at the same time as credit cards, loans and mortgages... News: Barclays PPI Sales

PPI claims delays after banks dig heels on complaints

15th October 2010. Customers won't receive any PPI claim refunds until banks' judicial review is heard. Thousands of customers who have complained that they were mis-sold a PPI policy face lengthy delays to get their claim resolved, after a legal argument between the banks and the FSA... News: Banks PPI Claims Complaints

Which slams bankers judicial review on PPI claims

14th October 2010. As the FSA vows to fight the British Bankers Association's judicial review of the new PPI claims complaints measures, Which... News: Which PPI Claims Complaints

Lenders put PPI claim complaints on ice

13th October 2010. Thousands of consumers who have lodged PPI mis-selling complaints face delays in having their disputes resolved as banks mount a legal challenge against new PPI claims complaints handling rules... News: British Bankers PPI Claims Complaints

FSA to challenge BBA over PPI complaints

11th October 2010. The FSA will challenge the British Bankers' Association's judicial review of its new PPI complaints handling measures... News: FSA PPI Claims Complaints

Lloyds puts PPI claims on hold in defiance of regulator

11th October 2010. Government-backed Lloyds Banking Group is defying regulatory guidelines by putting all PPI claims on hold.... News: Martin Lewis Money Saving Expert PPI Claims

Judicial review of the FSA's PPI claims complaints handling

8th October 2010. The British Bankers' Association has launched a judicial review of the FSA's new PPI claims handling measures. The FSA published a policy statement in August outlining a package of measures to protect consumers who buy PPI... News: British Bankers PPI Claims Complaints

Financial Services Consumer Panel: PPI Claims

7th October 2010. The panel has spoken out over the past 18 months on issues such as bank charges, banking complaints, and the mis-selling of payment protection insurance... News: FSCP PPI Claim Complaints

FSA in drive to improve complaints handling including PPI

6th October 2010. This builds on the FSA's recently finalised guidance for complaints about PPI, but will apply to all types of complaint... News: FSA PPI Claim Complaints

PPI Claims: Figure out the FOS

2nd October 2010. Payment protection insurance is the new endowment and accounted for 30 per cent of all complaints, 89 per cent of which were upheld. Banks provided 70 per cent of PPI complaints, with mortgage and insurance... News: FOS PPI Claim Complaints

Pure protection complaints continue to rise

1st October 2010. Overall, bank current accounts produced the highest complaint levels, with PPI second... News: PPI Claim Complaints

FSA PPI Claims Redress. A Missed Opportunity?

22nd September 2010. If statutory consumer redress schemes had been available this time last year, it may have lead the FSA to establish one in respect of PPI.... News: Ombudsman / FSA PPI Claim Complaints

Fos upholds 44% of complaints in favour of consumers

23rd September 2010. A spokesman for the FOS said he could not comment on individual cases, but conceded that PPI was responsible for a high level of complaints. He said: "Certainly across the board PPI has had an effect, as we have seen a shift and complaints have seen a trend towards banking and general insurance, which is largely PPI driven."... News: FOS PPI Claim Complaints

Hiscox boss calls for break up of Association Of British Insurers

22nd September 2010. The CEO of Hiscox told the British Insurance Summit that it was important the government viewed recent complaint figures, including PPI claims, as more than simply an "insurance problem". Banks lead the pack with more than half of those complaints... News: PPI Claim Complaints

Financial firms hit by 84,000 complaints

18th September 2010. Numbers were swollen by the high proportion of PPI claims which had been missold by many lenders in the past... News: PPI Claim Complaints

Loaded question about PPI misselling

16th September 2010. Panel hit out at the practice of loading premiums and lament the continuing fallout over PPI misselling... News: PPI Misselling

Martin Lewis's Money Saving Expert: Where to buy PPI

16th October 2010. Banks typically overcharged consumers by £1.4 billion a year when selling PPI, according to the Competition Commission, though many have since stopped selling cover. It is often far cheaper to buy PPI from independent providers such as British Insurance or Paymentcare... News: Martin Lewis's Money Saving Expert PPI Sales

Lloyds is the most complained about bank

14th September 2010. The Financial Ombudsman Service (FOS) has released complaints data for banks, insurance companies and investment firms. The vast majority are likely to have concerned PPI... News: Lloyds PPI Claims

PPI insurance: if you really want it, where do you go?

4th September 2010. As new FSA rules come into force, the PPI industry is bracing itself for £2bn-worth of misselling claims. So if you need PPI cover you need the very best advice. There is nothing wrong in the principle of PPI, it's just that it was hugely overpriced, and contained terms that made it difficult for many to claim. But what if you really want a protection policy to cover your mortgage or credit card payments if you became unemployed or fell sick?... News: PPI Claims

Wrongly Sold PPI Claims

4th September 2010. There are time limits for claiming your wrongly sold PPI compensation - it's vital you waste no time. Find out how much you are owed... News: Claim PPI

PPI may help with rescue planning

1st September 2010. While the Competition Commission has not confirmed its final verdict on the remedies it wants to introduce to the UK PPI market next year, the provisional decision published in May concerning PPI on mortgages, loans and credit cards... News: PPI Claims

Select and Protect offers prizes for MPPI selling

31st August 2010. Selected mortgage brokers have been chosen to take part in an exclusive Select and Protect MPPI competition. They are finding out more about MPPI as the provider exposes what it calls the five top mortgage PPI myths... News: MPPI Claims

PPI Early Warning

31st August 2010. The FSA's policy statement on payment protection insurance (PPI) complaints does not come as much of a surprise but it still represents bad news for the financial industry which never seems able to shake off the mantle of mass misselling. The FSA has said in the past that 5-10 per cent of insurance intermediaries may fail as a direct result of the cost impact of its measures... News: FSA PPI Claims

1,850 complaints to Lloyds Bank each day

27th August 2010. Included in this figure Lloyds received 41,874 complaints about insurance products during the first half of the year, mainly relating to PPI misselling... News: LLoyds PPI Claims

PPI: When the best-laid plans go awry

26th August 2010. New rules affecting the redress of PPI complaints have been published by the FSA. The FSA has published its long-awaited policy statement containing new rules in relation to the assessment and redress of the still significant numbers of PPI complaints that firms... News: FSA PPI Claims

Case of the PPI insurance policy that never was

25th August 2010. The row over PPI insurance took a fresh twist last week when it emerged that thousands who signed up for joint PPI policies may have no cover... News: Joint PPI Claims

FSA finalises PPI complaints rules

25th August 2010. FSA finalises PPI complaints rules Sellers of PPI have until 1st December to implement a new complaints handling regime, the Financial Services Authority (FSA)... News: FSA PPI Claims

How PPI missed the point

17th August 2010. Lloyds Banking Group's move to stop selling payment protection insurance is being seen as the lead in to the end of PPI products. The bank stopped PPI sales across all its retail... News: Lloyds PPI Claims

FOS still dealing with record PPI complaints

16th August 2010. More than 21,400 complaints have been lodged over payment-protection insurance since April, figures from the Financial Ombudsman Service (FOS) have revealed. It said it had now received 114,478 consumer complaints in the past five years over PPI... News: Ombudsman PPI Claims

Five-year PPI scandal leaves banks laughing

14th August 2010. Customers have been complaining about PPI for years. This week, the Financial Services Authority (FSA) ordered banks to improve their response and forecast that 550,000 people would lodge complaints about PPI... News: FSA PPI Claims

PPI compensation could reach £2.7bn, says FSA

10th August 2010. Two and three quarter million people could be refunded as much as £2.7bn for being missold PPI. The Financial Services Authority (FSA) has given banks and other lenders until 1 December to adopt new rules for dealing with PPI complaints... News: FSA PPI Claims

Three million in the queue for compensation over PPI misselling

10th August 2010. The FSA has issued new rules to firms about PPI misselling claims. Nearly 3,000,000 people who took out PPI sold by banks and other lenders could be in line for compensation totalling more than £2bn after the FSA today issued new rules on how firms should handle the flood of complaints over PPI misselling... News: FSA PPI Claims

Tesco Bank customers at risk of fraud after personal data is lost in post

30th July 2010. Prior to the data loss, the affected customers had complained to Tesco Bank about PPI. PPI is the insurance added to credit cards and loans which is supposed to cover repayments if borrowers are unable to pay because of accident, sickness or unemployment. It is believed that the victims of the Tesco data loss were in the process of making such PPI complaints. (Reclaiming-Tesco-PPI)... News: Tesco PPI Claims

PPI sales come under fire

28th July 2010. The Financial Ombudsman Service (FOS) has published quarterly data for the first time which shows that inquiries about PPI again top the list of complaints. PPI should enable borrowers to pay off loans such as credit cards or mortgages if they fall ill or lose their job... News: Financial Ombudsman PPI Claims

FSA complaints

28th July 2010. The complaints data publication - Firm specific complaints for the first half of 2010 has been lodged... News: FSA Firm-level complaints data

Lloyds TSB Bank stops PPI sales

27th July 2010. FOS figures are expected to show 150 people a day complain about PPI, as Lloyds Banking Group calls halt to sales for loans, credit cards and mortgages. Lloyds Banking Group has stopped selling the controversial PPI across all of its brands, which include Halifax and the Bank of Scotland... News: Lloyds PPI Claims

FSCS pays out two thirds of compensation for investment and PPI claims

22nd July 2010. In its annual report and accounts 2009/10, the FSCS said that two thirds of compensation paid was for PPI and investment claims... News: FSCS PPI Claims

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