Nov 4, 2012

The Financial Watchdogs That Have Investigated Payment Protection Insurance

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So steeped in dirt has the world of the PPI policy become that both the Office of Fair Trading (OFT) and the Financial Service Authority (FSA) have looked into and investigated the widespread mis selling of PPI. These bodies are different to the Financial Ombudsman – because while the Financial Ombudsman will look at individual PPI cases, the  Financial Service Authority and the Office of Fair Trading regulate the industry as a whole, and investigate the widespread policies of companies and whether they do or don’t sell their PPI policies fairly.

 

The Opting Out PPI Scam

Some financial companies that sold Payment Protection Insurance unfairly included in the small print that the consumer would have to opt out of buying the PPI policy. However, in a lot of PPI mis-selling cases it has become quite clear that the sales person who was selling the policy did not make it clear that the individual needs to opt out at all.

Such was the scope and scale of the payment protection insurance mis-selling that some financial companies patently made it nearly impossible for the client to know that PPI was being sold to them. Or , even when PPI was stated to have been sold, that it was not done so with a clear explanation of how it worked and whether it would be suitable to claim. This meant that many people who were never even eligible to make a PPI claim were still sold a policy – an example of this would be a self employed entrepreneur being sold a PPI product solely meant for those who were employed with a regular salary.

If you do forward a PPI case to the Financial Ombudsman, the Ombudsman will analyze and reflect on what both you and the financial institution says, and then make a determination about whether the payment protection insurance was likely to have been mis-sold or not. All documentation and any additional notes available will be checked to come to a fair and logical solution.

Filed Under: PPI Refund · Tagged: ,
Nov 4, 2012

The Financial Ombudsman & Payment Protection Insurance

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While the idea of PPI seems sound – covering any loans or debt repayments in case of unforeseen problems such as incapacity to pay due to illness or redundancy, many PPI insurance policies were mis-sold by financial institutions (even huge brand name banks).

The Financial Ombudsman is a body set up by the British government in 2001 to cater to the Financial Services And Markets Act 2000. The Ombudsman reviews and decides on many dispute cases, and it has been receiving more cases relating to the mis selling of PPI.

In fact the Financial Ombudsman has seen a variety of cases over the years relating to Payment Protection Insurance, including:

  • Refusal Of Financial Companies To Pay Out On PPI – This happens when a person who holds a PPI policy tries to make what they believe to be a valid claim , only to be turned down.
  • Another common PPI complaint is when the loan is paid off early by the borrower but no refund on the PPI is allowed, which means protection needs to be continued for a loan that does not even exist anymore – this can go on for many years. With PPI, the premiums for the protection is often paid in the first instance up front – a single premium, added to the loan. Because it effectively means that the PPI is added onto the main loan, it follows that in the case of the loan being paid back early, the remaining PPI is never returned to the borrower, and a refund must be requested. Sometimes, the refund is refused and in other cases the refund can be for a much smaller value. What makes things even worse is when a PPI refund is refused when a loan is repaid early as part of a finance restructure (eg if the client finds themselves in financial difficulty). If you find yourself in this situation, you can consider making a PPI claim.
  • More typically, the Financial Ombudsman in recent times is getting an increased volume of cases relating to PPI being mis sold. Mostly, PPI is mis sold when the consumer is tricked into signing up to the PPI policy without knowing or fully understanding that they were being sold PPI. Often, the terminology used by some salesmen in selling PPI policies were devious and this has resulted in lots of PPI policies being bought unwittingly by the public.

If you believe you were unfairly sold a PPI policy, you can make a complaint here:

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

The financial ombudsman will contact both the financial company and the PPI client to try and come to a fair resolution after analyzing the facts.

Remember, normally, it is a good idea to try and contact the company that sold you the PPI before you contact the Financial Ombudsman. Only as a last resort should you get in touch with the Financial Ombudsman, if you think you have been treated unfairly, or if you are uncertain who you need to contact regarding the payment protection insurance policy.

Filed Under: PPI Refund · Tagged: , ,
Nov 4, 2012

Steps To Reclaim PPI

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If you took out payment protection insurance, perhaps unknowingly, you may have the potential to ask for a full or partial refund from the financial company who sold it to you. A lot of these policies were falsely sold by these companies who were after a quick profit, while sometimes knowing full well that the PPI was inappropriate for the client that they sold it to.

In fact, the PPI policies would sometimes return almost a thousand percent ROI for the policy sellers, and in a market that was at best loosely regulated, many unscrupulous financial salesmen just kept trying to sell as many of these policies as possible. Many people have been ripped off, sometimes without even knowing about it.

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Nov 4, 2012

What Is PPI (Payment Protection Insurance)?

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PPI stands for “payment protection insurance” – in many instances, people have been mis-sold PPI’s by companies that offer financial services such as loans, mortgages and credit cards. Initially, PPI was a financial product that was set-up to protect people against them losing their incomes.

What Happened With PPI’s And What Is The Problem?

Since 2005, there have been an incredible 1.5 million complaints about PPI’s. However, it was in April 2011 in the UK where PPI claims have absolutely skyrocketed. This is because, in this month the British Bankers Association lost a landmark courtcase which had accused big banks of effectively mis selling PPI’s.

Astonishingly, no less than a THIRD of all court cases in the UK are related to PPI cases.

The landmark ruling means that banks may lose as much as £4.5 billion  (over $6m) to customers who believe they were sold the protection inadequately. This is a legal ruling and banks HAVE to pay money back to potentially millions of affected customers. The main financial body in the UK, the Financial Services Autority or FSA, has made it clear to banks that not only will they need to repay customers who are unsatisfied, but will also need to proactively contact clients who may have been mis-sold PPIs.

How To Qualify For Free PPI Legal Advice

In some cases consumers were wrongly sold PPI’s, and in other cases the consumers were even unaware that they had taken out PPI’s. For people who are living in the United Kingdom, and who believe they were mis sold PPI’s they can consult legal advice, usually for free. The lawyer would take commission from the claim settlement that the client wins.

What You Will Need To Do First

The first thing you will need to do is to check out if you actually have PPI coverage. If you are not sure it may be an inication that you have it without even knowing about it.

The next step is to contact a lawyer to handle claiming back the PPI for you.

Filed Under: Finance & Money · Tagged: ,
Mar 31, 2012

How To Identify Legitimate Debt Elimination Companies

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Debt elimination companies today are enjoying immense popularity among consumers. This is probably because of the fact that people have realized their need to get rid of their debts. People are beginning to look at credit in a whole new light. In the past, people regarded credit as a convenience they were willing to pay huge amounts of interest for. Today, people see credit as something undesirable.

People who want to eliminate their debts need help. Debt elimination companies see this need and attempt to fill it. This demand for the services of a good debt elimination company has created a sudden boom in the industry. When you look at the internet today, you will find that there are a lot of debt elimination companies which are in business. This means that you are faced with the decision on which debt elimination company to deal with.

When you know enough about debt elimination companies, you might be able to make a rational decision. You would be able to think clearly and choose wisely. So what are the things you should know about debt elimination companies?

1) There are fake ones – As in every type of business, debt elimination companies also have counterfeits. While a real debt elimination company will help you get rid of your liabilities, fake ones will give you nothing but headaches. How do you tell which debt elimination companies are real?

One sure way to tell if a debt elimination company is genuine is through its level of expertise. Real debt elimination companies will offer you the services of qualified and certified counselors to help you fix your finances. Another way to tell is through the payment that the company requires for its services. Often, fake debt elimination companies will ask for outrageous fees for very small services.

Another way to discern a fake debt elimination company is through its method. Debt elimination can be a long process. However, many fake debt elimination companies today offer you documents that they say would eliminate your debts without you having to spend a single cent. This is definitely a scam.

2) They can negotiate – If you think that all a debt elimination company can do is give you advice, you would be mistaken. In fact, debt elimination companies can contact your creditor and come up with a debt elimination plan that will benefit you all. Through a debt elimination company, you will be able to negotiate with your creditors for a smaller interest rate and lower fees.

3) They will study your case – A good debt elimination company does not offer you a “generic” debt elimination strategy. In fact, debt elimination companies today will take the time to sit with you and analyze your finances. Because of this, you will be able to come up with a debt elimination strategy that is tailored to your needs. This means that you will be able to focus all of your efforts to remove your debts.

4) They need your help – If you think that you can dump all of your problems into a debt elimination company, you would be mistaken. In fact, a debt elimination company needs your cooperation. You need to give the debt elimination company all the information it needs to come up with a debt elimination plan for you. You will also need to exert the effort to follow the plan. This way, a debt elimination company can be most helpful to you.

Filed Under: How To Get Out Of Debt ·
Mar 31, 2012

How To Use Debt Elimination Services

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Debt elimination services are enjoying wide publicity today. This might be because of the fact that more and more people are realizing that the culture of plastic is not really good for them. People are beginning to realize the consequences of living their lives through credit cards. They realize just how much they would be able to save just by paying with cash instead of credit. People are beginning to notice just how futile it is to keep on paying interest.

Sometimes, being in debt can feel like your whole body is wrapped in heavy chains, every second of every day!

Thus, they approach different companies offering debt elimination services for help.

What can debt elimination services do for you?

 1) Help you plan – A debt elimination service can help you come up with a solid plan to get you out of debt. A good debt elimination service will help you analyze your situation and help you think about the next step you are going to take. Debt elimination services will make sure that the plan you have in mind is:

a) Attainable – The plan should be easy enough for you to follow. It should not prove to be too much of a burden to you. The plan that a debt elimination service will come up with should help you get rid of your liabilities without putting unnecessary pressure on you.

b) Efficient – Even though the plan is easy, it should try to achieve the goal of eliminating your debts as fast as possible. A plan should make full use of what resources you have available in order to achieve a goal.

2) Negotiate – Debt elimination services should help you negotiate with your creditors in order to reach an agreement concerning your debts. A company offering good debt elimination services should be able to speak with your creditors and convince them to allow you to pay off your debts in a manner that’s not too hard on you. This means that good debt elimination services should be able to help you come up with a whole new payment plan involving lower installments and lower interest and fees. With this, you will be able to eliminate your debts quite easily.

3) Advice – Good debt elimination services will give you the advice you need ingoing about debt elimination. This includes advice on:

a) How to avoid more debts- Good debt elimination services will be able to give you advice on how to keep debts at bay. This means that debt elimination services should give you advice on how to properly budget your money. Debt elimination services should help you by teaching you how to prioritize expenses. A good debt elimination service should teach you how to think about the consequences before you spend money on anything.

b) How to get rid of your current debts – This would be the most important advice that a debt elimination service can give to you. If they cannot give you a plan, debt elimination services should be able to give you some hints and tips about eliminating your current liabilities. They would be able to suggest methods of payment and would be able to give you advice on how to cut back on your spending.

These are just some of the ways through which debt elimination services can help you. When you find yourself in a sticky financial situation, you need all the help you can get, and debt elimination services can definitely do the job.

Filed Under: Finance & Money, How To Get Out Of Debt ·