Last week was fairly quiet for PPI stories. Still haven't heard much regarding the Judicial Review and thankfully, we are continuing to see a lot of claims being paid out. The advice is still to make a claim regardless of the Judicial Review as soon as possible.
It was suggested that as a result of Payment Protection Insurance misselling, the levy which the Financial Services Compensation Scheme has apportioned onto the industry has caused a 70-fold cost increase for the insurance intermediary sub-class.
The BIBA head of compliance and training Steve White said: “The misselling of PPI by credit brokers has caused a 70-fold increase in FSCS levies over the last three years. A firm that paid £3,000 three years ago is now being faced by a levy demand this summer of £210,000."
These increases are particularly large for the smaller intermediary. A system which fails to apportion the levy on risk (insurance mediation) is grossly unfair to those advisors who never sold PPI. The sooner the system can be made fairer, the sooner certain aspects of the industry can burden the cost of what was a very turbulent area of selling.
Banks have been accused of selling homebuyers life insurance at the sale of the mortgage which was unnecessary and expensive. Life insurance sold with a £200,000 mortgage can cost up to £300 a year more with some high street banks compared with separate insurance from a comparison website.
It is normally the case that basic level life insurance is sold with a mortgage. The borrower pays the same sum every month and the insurer agrees to repay the mortgage if the borrowers dies. The insurance has echoes of PPI misselling in that it could be sold to single people who had no requirement for it, or added an expensive extra cost to the mortgage loan. We would always prompt individuals to shop around for the best deal they can find on the market rather than settling on the first quote from their mortgage lender.
If you think you have been mis-sold Payment Protection Insurance Policy, do not hesitate to contact us via www.ppireturn.co.uk
Monday, 21 March 2011
Friday, 18 March 2011
Big bill for PPI and New Head of Lloyds
Last week, Jonathan Evans MP suggested that the overall liability for payment protection insurance (PPI) mis-selling could reach £4bn.
The amount was highlighted at an evidence meeting of the All Parliamentary Group on Insurance and Financial Services at the House of Commons. Both the British Insurance Brokers' Association and the Association of Independent Financial Advisers gave presentations.
Mr Evans MP, who chaired the meeting, said: "I've seen indications that in due course the overall liability in relation to PPI is likely to be not in the hundreds of millions but the billions [of pounds]. I heard a figure of perhaps even £4bn mentioned as an end game figure." He said "The expectation is that over the next few years a significant figure is going to become a colossal figure."
This figure follows on from similar estimates given by the industry last year. But any presumption becomes speculative when the outcome of the Judicial Review could affect a large majority of the claims anyway. Regardless, it is still troubling to see so many victims out there that have not yet made any attempt to make a complaint. We would urge people to come forward and claim what is rightfully theirs at www.ppireturn.co.uk
In other news last week, the head of Lloyds high street banking is leaving to be replaced by Antonio Horta-Osorio. The currently appointed Helen Weir will leave as Mr Horta-Osorio attempts to rebuild lloyd's poor customer service image.
With the Ombudsman suggesting that one in four new cases it received was about Lloyds, a new head with customer service as his top priority may change their present record. It may also be the case that the tranche of delayed Lloyds PPI matters may begin to start moving again.
Dont forget, if you think you have been mis-sold PPI, make sure you contact us asap at www.ppireturn.co.uk
The amount was highlighted at an evidence meeting of the All Parliamentary Group on Insurance and Financial Services at the House of Commons. Both the British Insurance Brokers' Association and the Association of Independent Financial Advisers gave presentations.
Mr Evans MP, who chaired the meeting, said: "I've seen indications that in due course the overall liability in relation to PPI is likely to be not in the hundreds of millions but the billions [of pounds]. I heard a figure of perhaps even £4bn mentioned as an end game figure." He said "The expectation is that over the next few years a significant figure is going to become a colossal figure."
This figure follows on from similar estimates given by the industry last year. But any presumption becomes speculative when the outcome of the Judicial Review could affect a large majority of the claims anyway. Regardless, it is still troubling to see so many victims out there that have not yet made any attempt to make a complaint. We would urge people to come forward and claim what is rightfully theirs at www.ppireturn.co.uk
In other news last week, the head of Lloyds high street banking is leaving to be replaced by Antonio Horta-Osorio. The currently appointed Helen Weir will leave as Mr Horta-Osorio attempts to rebuild lloyd's poor customer service image.
With the Ombudsman suggesting that one in four new cases it received was about Lloyds, a new head with customer service as his top priority may change their present record. It may also be the case that the tranche of delayed Lloyds PPI matters may begin to start moving again.
Dont forget, if you think you have been mis-sold PPI, make sure you contact us asap at www.ppireturn.co.uk
Wednesday, 9 March 2011
Welcome Bust and Lloyds making billions
The Financial Services Compensation Scheme (FSCS) declared Welcome Finance in default on the 2nd March.
This means that the FSCS felt it was satisfied Welcome was unable, or likely to be unable, to pay claims against it in relation to payment protection insurance (PPI).
Welcome sold a huge amount of PPI policies to its customers, and its 'default' opens the way for those customers to bring a claim directly to the FSCS for compensation.
In an unprecedented decision, Welcome will assist the FSCS by providing cash and resources to deal with any future or ongoing cases. The move is a positive and considered step by the FSCS to allow it to process claims efficiently by having access to Welcome's records. We are keen to advise any clients who have a loan with Welcome that they should approach us without delay so we can deal with their case. Although Welcome is officially no longer trading, aside from a couple of changes, we can still claim compensation.
There are some other reports this week showing Lloyds losing £70 million per year following their decision to stop offering PPI on their accounts. However, the bank still returned to a healthy £2.2 billion pound profit last year after a £6.6 billion loss in 2009. No doubt they will find another product to replace the profitable insurance !
Finally, the ABI made comment this week on Ombudsman case fees. Each FSA regulated business must pay the Ombudsman £500 per case when it reviews a complaint. This means that companies like Lloyds are providing a huge amount of funds to FOS to cover its operating costs. The ABI is calling for claims management companies to contribute to the Ombudsman's costs as they are somewhat responsible for the influx of PPI claims. I believe much of the reason for the increased costs comes from the manner in which some banks have chosen to deal with cases after the Judicial Review was announced in October 2010. The industry is always keen to work with FOS to alleviate any pressures and to ensure cases are dealt with as efficiently as possible.
If you think you have been mis-sold Payment Protection Insurance Policy, do not hesitate to contact us via http://www.ppireturn.co.uk/
This means that the FSCS felt it was satisfied Welcome was unable, or likely to be unable, to pay claims against it in relation to payment protection insurance (PPI).
Welcome sold a huge amount of PPI policies to its customers, and its 'default' opens the way for those customers to bring a claim directly to the FSCS for compensation.
In an unprecedented decision, Welcome will assist the FSCS by providing cash and resources to deal with any future or ongoing cases. The move is a positive and considered step by the FSCS to allow it to process claims efficiently by having access to Welcome's records. We are keen to advise any clients who have a loan with Welcome that they should approach us without delay so we can deal with their case. Although Welcome is officially no longer trading, aside from a couple of changes, we can still claim compensation.
There are some other reports this week showing Lloyds losing £70 million per year following their decision to stop offering PPI on their accounts. However, the bank still returned to a healthy £2.2 billion pound profit last year after a £6.6 billion loss in 2009. No doubt they will find another product to replace the profitable insurance !
Finally, the ABI made comment this week on Ombudsman case fees. Each FSA regulated business must pay the Ombudsman £500 per case when it reviews a complaint. This means that companies like Lloyds are providing a huge amount of funds to FOS to cover its operating costs. The ABI is calling for claims management companies to contribute to the Ombudsman's costs as they are somewhat responsible for the influx of PPI claims. I believe much of the reason for the increased costs comes from the manner in which some banks have chosen to deal with cases after the Judicial Review was announced in October 2010. The industry is always keen to work with FOS to alleviate any pressures and to ensure cases are dealt with as efficiently as possible.
If you think you have been mis-sold Payment Protection Insurance Policy, do not hesitate to contact us via http://www.ppireturn.co.uk/
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