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.
Sunday, 26 September 2010
Sunday, 19 September 2010
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.
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.
Sunday, 12 September 2010
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.
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.
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