Careful with some Claims Management Companies offering to write off debts

Not a great deal of updates over the last week in the PPI world. We are awaiting the FSA / FOS responses to the BBA's Judicial Review which should be served very shortly. Although it will provide some more information about the particulars of the court application, I doubt it will provide any real clarity on whether the BBA will be successful.



I noted in the press last week of a customer of a Claims Management Company called Capital Returns. This customer was told she would have all of her debts paid off (£20k). As is becoming clear, those claims are turning out to be false and having paid £200 up front to the company, this customer feels very angry about the way in which they treated her.



PPI Return would always warn consumers looking to get out of any debt. If its too good to be true, then it probably is! Many of these claims management companies have now gone out of business leaving clients seriously out of pocket. PPI Return would always suggest making a PPI mis-selling claim as it is a much more likely route to obtain compensation.

I have also read about some US reports showing credit card providers are using an automatic "opt-in" policy for payment protection insurance. In the past, this appeared to be a post card upgrade, but now they have included it at inception. Its a shame providers are still using these tactics (regardless of where in the world it is being undertaken) to sign customers up to a PPI policy.

If you think you have been mis-sold Payment Protection Insurance, don't hesitate to approach us to make a claim at http://www.ppireturn.co.uk/

Judicial Review Update and FSA Backtracks on Rules

We had some interesting updates in the world of PPI last week. The judicial review is still being considered, but it looks like we may be seeing the application heard at court towards the end of January. Most of the lenders are continuing to review cases, despite the JR, but we are still continuing to receive offers and so would urge people to continue to make claims.

The FSA also released a response clarifying some of the rules which they were intending to implement on the 1st December. The FSA felt the BBA may have misinterpreted some of the rules and so have issued some clarification. It is fair to say that the FSA have been pushed into this position as a result of legal advice and we await the BBA's response.

In terms of all the 1st December rules, it appears most banks are refusing to implement the rules until the Judicial Review has been decided. This doesnt mean that more claims will be placed on hold, but it does mean that the new rules on complaint handling cannot be brought in. We are however, confident that a proportion of claims will be continued to be investigated regardless.

If you think you have been mis-sold Payment Protection Insurance, don't hesitate to approach us to make a claim at http://www.ppireturn.co.uk/

PPI Complaints Popular - But People Still Want It

Last week was a fairly quiet week in the PPI world, we are still awaiting some clarity and progression on the judicial review and are beginning to see how the banks are looking to deal with complaints.

I noted in the press last week that Capita Insurance Services have conducted a small survey into attitudes of PPI. It suggested that almost 30% of loan customers who have cancelled or are considering cancelling their payment protection insurance (PPI) would consider a replacement policy.

This of course is prudent (but surprising) information given the present wave of consumers claiming compensation from the banks. If any consumer is successful, it will have the effect of removing their PPI from their account. Of course, this leaves them at risk if they do have to take time off from work due to accident, sickness or redundancy.

It is always important to protect yourself in case you are unable to work and there are some excellent products on the market which will give you much more comprehensive cover.

If you think you have been mis-sold Payment Protection Insurance, don't hesitate to approach us to make a claim at http://www.ppireturn.co.uk/

Ombudsman Caseload Continues to Increase

Once again, more statistics published last week confirmed what we all knew. Payment protection insurance complaints continue to make up a massive 45% of its ongoing caseload over the last 3 months.

I believe this figure will increase dramatically as the Ombudsman begins to receive complaints which banks will not investigate as a result of the judicial review. The Ombudsman will have to reallocate their staff to cope with the massive extra workload. Furthermore, even if a complaint is forwarded to the Ombudsman service, it is likely only a full decision in the customer's favour from an Ombudsman will compell a bank to pay any compensation. Such a decision from the top level of the service could take as long as 1 year to be realised.

However, we are still receiving a steady proportion of offers and payments and although certain banks have confirmed they are unwilling to deal with a selection of cases, we are confident that we will still be able to deal with cases despite the judicial review.

In another article this week, the FSA are keeping a keen eye on its members as they begin to trial new products. The FSA has cited they intend to take a proactive approach to risk management as they review these new products in an effort to avoid another 'PPI' scandal. Only with this positive approach to regulation can the FSA ever hope to keep their members in check.

If you feel you have been mis-sold PPI, dont hesitate to approach us to make a claim at http://www.ppireturn.co.uk/

Tyneside Couple Ripped Off

Last week a couple, one of GE Money' customers from Tyneside won his battle for a refund of his Payment Protection Insurance which he believed had been wrongly sold to him.

He took out a loan for £15,000 and was told to take out a PPI policy with the loan at a cost of £2,250. This was added on top of the loan and interest was charged throughout the term of the account.

The worst thing about his situation was that after 5 years, the policy expired and GE Money were pushing him to pay more money to protect his loan for the remaining term ! Luckily, he was able to secure a full refund of the PPI by taking his claim to the Financial Ombudsman Service. However, he maintained it was a stressful, time consuming exercise.

At www.ppireturn.co.uk, we are able to take the stress out of claiming. In todays busy environment, our clients dont have the time, nor the knowledge to deal with their own complaints. PPI Return can assist you to claim back what is rightfully yours with the minimum of fuss.

In other news, we are a little further on with the Judicial Review. The Ombudsman has confirmed they will look into complaints where a bank has refused to look into our client's case if the matter has been left for the requisite 8 weeks. Additionally, the FSA appears aware of the methods some of the banks are using to cease the investigation of complaints and is pushing for the Judicial Review to be heard as soon as possible.

This does not mean you cannot continue to register your complaint. We are sure this is only a temporary setback and it is 'business as usual' for the majority of our clients.

If you feel you have been mis-sold PPI, then give PPI Return a call on 0800 877 8888. PPI Return is a division of Goldsmith Williams Solicitors.

Judicial Review ongoing and Banks Refuse to Investigate Complaints

So, one week on from the the Judicial Review and no clearer as to what all the court action is really about.

All we know is that the banks are beginning to refuse to deal with PPI complaints - irrespective of the merit and in complete defiance of the FSA and FOS. There is still no confirmation of which cases the JR affect and the banks are even refusing to pay out on cases they have already offered compensation.

Our advice to consumers is to plough on regardless and not be put off by this latest ruse, even if the process may take a little longer. Sadly, this culture of opposition has been a feature of the PPI claim process throughout, from the endless claim forms to the rejection letters, and this is the latest instalment.

Coincidentally, this week saw the Competition Commissions ban coming into effect. Although the specific provisions may take a year to come to fruition, we can be safe in the knowledge that banks will be unable to sell PPI to consumers in the future. The Competition Commission acknowledged that the sale restriction would inconvenience some customers who wanted the insurance, but it argued that customers would be much better off overall.

If you feel you have been mis-sold PPI, then give PPI Return a call on 0800 877 8888. PPI Return is a division of Goldsmith Williams Solicitors.

Judicial Review Announced

Big news this week with banks deciding to take legal action against the Financial Services Authority.

Although it has not been made entirely clear, it would appear the banks are particularly displeased with some of the new FSA rules concerning the handling of PPI complaints which will be put into force on 1st December.

Particularly, the rules suggesting previously denied complaints should be re-opened, investigated and paid out. Furthermore, the banks have been requested to undertake a proactive approach to contact customers who were sold PPI to see if they were mis-sold.

The action has not, and should not, affect any ongoing complaints – the FSA has made it clear it will not move to do so (like it did with bank charges).

We will continue to monitor the judicial review and report back with any further updates.

So - this changes nothing in the way in which cases will be dealt with in the foreseeable future and if you want to make a claim - contact PPI Return at http://www.ppireturn.co.uk/. PPI Return is a division of Goldsmith Williams Solicitors.

Banks make up lost profits from PPI

A recent Bank of England report has suggested that banks are trying to significantly increase their profit margins by a number of different methods as they try to claw back lost profits from Payment Protection Insurance.

The report shows that while the rate the Bank of England charges banks was slashed to 0.5% from 5%, the interest rate banks are charging on personal loans and credit cards has risen to around 11% from 8.5%.

The banks have been criticised for failing to lend enough money to those who require it and charging higher rates to its existing customers. They say they have little choice as the higher rates they charge reflect the higher costs they have to pay in the wholesale markets.

Considering the banks have lost the PPI battle - it is a shame to punish other customers by hiking up interest rates. The banks were made an example of by making excessive profits from customers who needed finance and assistance. To punish all their customers as a result of that failing is unfair.

If you want to make a claim - contact PPI Return at http://www.ppireturn.co.uk/. PPI Return is a division of Goldsmith Williams Solicitors.

Ombudsman's Work Load Increases

PPI Mis-selling claims are increasing very quickly. The Financial Ombudsman's has had to deal with 84,000 cases this year (the majority of which are concerning mis-sold PPI).

However, always remember that although there are many inadequacies of PPI, bad press which surrounds it many claims being made, people are being put off taking the insurance out.

As such, there are now thousands of financial consumers agreeing to loans, mortgages and credit cards without sufficient protection should they be unable to make repayments. This situation is has been worsened by the state of the economy with many people losing their jobs.

Now, more than ever, is the most important time to have an appropriate PPI policy and those without one are placing their credit rating, belongings and even their home on the line.

There are many excellent Income Protection plans on the market which are far better than the insurance that would have been sold on loans and credit cards.

So if you’ve been mis-sold insurance then make your claim but don’t disregard PPI altogether, when sold correctly it can help you get through times of financial difficulty.

If you want to make a claim - contact PPI Return at http://www.ppireturn.co.uk/. PPI Return is a division of Goldsmith Williams Solicitors.

Banks May Make Legal Challenge ?

Not a great deal in the news this week about Payment Protection Insurance.

Perhaps all interested parties are still digesting the new FSA rules on how PPI complaints should be handled. The rules go some way to break down what is expected of banks whilst investigating PPI complaints. They are no longer able to rely solely on papers completed at the time the loan was sold. They must take ALL evidence, written or verbal into consideration when making their decision.

This means our clients will get a much fairer deal during their claims. The big banks will (hopefully) continue to pay out as they have done - leaving the more awkward defendants to try to wriggle out of paying up.

The rules also allow for a greater amount of compensation to be paid in some cases where a customer was not given a fair rebate and enhanced compensation for linked loan accounts. The rules are due to go live on 1st December.

On the other hand - there has been a report this week that the banks intend to mount legal action against the FSA on its decision to retrospectively apply its new rules to the banks' complaint handling operations. It will of course be interesting to see if there is any further development on this point in coming weeks.

FSA Makes New Rules

Welcome to Burley's Blog. My thoughts for the week and every week as PPI continues to hit the headlines.

The most prominent changes of the week centre around the FSA's new changes in the way in which the banks must process PPI complaints from their customers. I believe it will change the way banks will deal with complaints, ultimately in a positive way, but we must be aware that some banks may use the new process to delay the progression of cases, thereby continuing to hold back money which belongs to our clients. Every bank must use the new rules from the 1st December and so they have been given some considerable time to implement the new rules.

We will continue to fight for our clients to get them the best deal regardless of how the banks choose to deal with the cases.

On another point, I note with interest the plight of a man in Dumfries, duped by a Claims Management Company suggesting they could write his credit card debt off. Goldsmith Williams have always aired on the side of caution when advising clients of their ability to write off their debts. There have been so many Claims Management Companies promising to help write debt off, but few appear to have succeeded on mass. Given the recent High Court rulings on the subject, it appears there is little chance in getting your debt written off and I expect the area to continue to decline.

As it happens, the CMC told their client that they offered a free service, but they charged £1,400 to tell him that he had never paid payment protection insurance and couldnt write his debt off.

If you feel you have been mis-sold PPI, then give PPI Return a call on 0800 877 8888. PPI Return is a division of Goldsmith Williams Solicitors.