A survey done by VoucherCodesPro.co.uk reveals that majority of consumers are using their PPI refunds to have vacation holidays or to purchase a new vehicle. A small majority only saves their refunds or uses it on clothing and gadgets. The survey also showed that UK consumers were quick to spend their PPI refund, contributing greatly to the UK economy.
Economists said the payout of £13.3 billion, which had already reached consumers, is equivalent to 1% of the UK GDP, a very effective “spend” signal that is better than quantitative easing or tax reductions. An increase in car sales from 2012 to the first quarter of 2014 is attributed to PPI.
An average PPI can pay out at least £2780-3500 for consumers. The amount is enough to afford medium-cost travel packages or a down payment for a new vehicle.
The survey showed that at least 19% of consumers who received their PPI compensation used it to purchase new home appliances. Some 17% of the recipients used the money to pay existing debt. The remaining saved the money or used them to buy apparel and groceries.
Mis sold PPI is the UK’s largest financial scandal in history with banks, including the Big Four major banks, setting aside £20 billion for mis sold PPI claims.
The increasing numbers of consumers getting back their complete refunds were also music to the ears of UK economists. Experts said that payment protection insurance contributes heavily to the United Kingdom’s economic recovery as more households mobilize local economies and increase interests in properties.
An average PPI claim could cost around £3000-3500. However, lenders such as Halifax or HSBC could possibly introduce you to higher fees for your insurance policy. If you’re making a PPI claim from Halifax for example, their PPI and other financial repayment are also included in an increased interest rate.
According to economists £3000-3500 in cash instead of a tax deduction makes the money more a windfall and helps motivate people to spend. The motivation to spend, use the money as down payment for further investment or re-invest the money in the stock market helps the local economy, which improves prices.
The Office of National Statistics previously had a theory regarding PPI withholding consumer spending in the past few years. In the first two quarters of 2013, they reported a 15% increase in the number of car registrations with over 27,000 new vehicles named in different areas of the country.
The PPI scandal could be the most expensive scandal to hit the UK with a projected total of £20 billion, but the timing for economic recovery and better reclaiming services could not have been better.
Robert Mugabe has once again won the election in his country and has been quick to pick up where he left off, as he vows to press on with his policy of forcing all companies to cede economic control to black Zimbabweans.
“Indigenisation” was also one of his main campaign issues for last month’s election. Mr Mugabe duly rejected all claims by his opposition that the voting was rigged. During his speeches, Mr. Mugabe has constantly brought attention towards his view that black Zimbabweans need help as they faced discrimination during white minority rule, which ended in 1980. His controversial policy of seizing most of Zimbabwe’s white-owned farms is widely seen as having caused the country’s economic collapse from 2000-2009.
Mr Mugabe says giving black native Zimbabweans further control of the business sector is the next step in his plans for the country. He also said the election result had given him a “resounding mandate” to do so. He added that the policy was in fact the “final phase of the liberation struggle” and “final phase of total independence”. Foreign-owned companies have already been heavily pressurised to ensure they are at least 51% locally owned – again, a controversial policy which some analysts say has scared off potential investment from abroad. The main targets of Mugabe’s nationalistic policies have been local operations of foreign-owned mining companies, according to Reuters news agency, while experts say banks could be next.
The opposition Movement for Democratic Change (MDC), which says Mr Mugabe had rigged the election, boycotted the rally to mark Defence Forces Day. Mr Mugabe lashed out at his opponents by saying that his critics could “go hang”, in his first public speech since the suspected disputed election. It was the establishment of a power-sharing government, in 2009, that stopped Zimbabwe’s economic meltdown, through which the local currency abandoned. Mr Mugabe’s allies have suggested that the Zimbabwean dollar could now be re-introduced but they have expressed their concerns that this would not happen soon.
His critics have protested that much of the land seized from white farmers, occasionally partnered with multinational firms, was either given to his cronies or to people who simply lacked the expertise or resources to use it productively. In return, Mr Mugabe retorts that Western powers are sabotaging Zimbabwe’s economy because of his anti-colonial stance. The Constitutional Court is beginning to consider Zanu-PF’s legal challenge on Wednesday, following a two-day public holiday.
The Treasury Product Claims Specialist, Daniel Hall said that the banking industry was already clear about the issue on the interest rate swaps mis-selling. Most of UK’s big banks are now acting on some provisions regarding the problem. Different banks including Barclays already increased their material provisions to an amount of £850 Million. The RBS was also planning to increase it to an amount of £1 Billion. Mr. Hall said that the current increase could be higher if the FSA review scheme was not reduced.
Mr. Hall described the review scheme of the FSA to be very slow. The review has lasted for almost 9 months before it was able to identify the failings and have reviewed that some of the scheme weren’t used. As of the moment, Mr. Hall says that most of the affected businesses in the United Kingdom continue to struggle with the problems on interest rate swaps. It was also reported that the FSA already suggested that there is no need for the business to approach a claims management company because the process in claiming would not be complicated.
It was also mentioned that the scheme of the FSA would ensure that the banks will be able to appoint a reviewer to assess the case of the banks. The said independent reviewer is tasked to find out if mis-selling took place and be able to determine the amount of redress that is payable in the event of mis-selling. For reassurance business owners can seek help from specialist financial claims management companies such as InterestRateSwapsClaim.co.uk to get their compensation.
The Financial Services Authority already considered a deadline for the PPI claims to be set spring 2014. The news regarding the deadline angered so many customers and various critics. The deadline was the idea of the British Banking Association. The association considers the deadline to be one of the moves to end the PPI claims scandal and also ease adding to UK’s problem with the financial crisis. According to BBA, it is time for the economy to improve. An expert on money and savings, Martin Lewis has stated that these banks had ten years in mis-selling the PPI so it should give their customers the same allotted time to make their claims.
The Payment Protection Insurance (PPI) was a product designed by the bank for the customer’s advantage. This kind of insurance helps them pay their mortgages, credit card bills, and other loans. The PPI is indeed helpful when customers encounter sickness and accidents. It was recorded that due to the banks abusive method of selling, most of the employees would mis-sell the insurance. A customer may make his or her PPI claim by making a PPI template letter to be submitted in their respective banks.
Other critics think that the 2014 deadline for the PPI claims would be unfair to a lot of customers. The banks were known to not make enough efforts in contacting their customers on making their PPI claims. It was also reported that most of the banks failed to inform their customers about the PPI claims. Evidence regarding these claims was compiled by the Claims Standard Council Policy. Most of the evidence were substantial enough to prove that the banks have been delaying the PPI claims of their customers. For help in getting compensation for your mis-sold PPI, see MisSoldPPIClaimsCo.co.uk.
Almost everyone in the UK was mis sold PPI by banks, financial institutions and other creditors and you might be mis sold the insurance policy as well. PPI is designed to cover your loan repayments in case you face financial problems due to sicknesses, accidents and unemployment, but because of its exclusions, you may not be eligible for the insurance. Check your policies, and see for yourself if you fit their description.
You can make a PPI claim on your own and certainly, you can get it without any legal help. The Financial Ombudsman service and the Financial Services Authority undertook great challenges to ensure that all customer can be refunded PPI. However, if the going gets tough, meaning you might not have time to make your claim on your own or you have multiple claims to make, that’s when you’ll need a claims expert.
A PPI claims expert is a person who is knowledgeable with experience and the legal side of the claim to help you make your claim successfully. They are the ones who can fully concentrate on your claim. While you have the same procedure to go through to make your PPI claim, a claims expert has the advantage of time making your claims, no matter how many and how complicated they are.
A claims expert who aims to help will not charge fees all at once. He or she will only charge when the job is complete and to your satisfaction. He or she will not charge you with hidden fees or do a mediocre job of getting back all the money swindled from you by the insurance.
Remember, you actually lost £2750 per mis sold PPI and you can be owed hundreds of thousands of pounds for every car, home, mortgage financing or credit card you have. Make a claim only with no win no fee claims experts.
PPI claims are now common practice among UK folk given the amount of compensation they can receive is quite massive. Recent news states that millions have filed and collected their payment protection compensation from their respective UK banks and it’s high time you do the same. Here are a few things that could help you begin.
1. Your Financing
If your financing is still active and you instantly saw an insurance payment that you are required to make per month, try to question your bank about the item. If you received the item as a part of a package deal for your financing or credit card, you then have the legal right to refuse having the payment protection bonus.
2. Financial Advisers
Your financial adviser is the first person you should ask about the insurance since it was them who told you to get the insurance in the first place. Verify with them if the insurance was a requirement or part of the package itself. Usually, lenders pay for the first year of the insurance, then the consecutive years, the responsibility rests on you as it is contractually assigned to you without you knowing that it is. Financial advisers are also known to chase bonuses, given the banking incentives systems in the UK, selling high-rated products like PPI motivate them to earn more in profit.
3. Collect Evidence
The first thing you should do is to collect evidence. Have at least your recent repayment of the insurance along with your financing. Ask your bank about the contracts and forms that were signed by your financial adviser on your behalf. These evidences will work to help you reclaim the refunds you deserve.
4. Call a Claims Management Company
You’ll need help from people with experience and knowledge especially if dealing with multiple PPI reclaim. Have a claims management company brief you on the legalities and limitations that your claim has. Most claims management companies can offer you claims services virtually free so you can save yourself the time and hassle of doing such.
It was reported by the Financial Ombudsman Service that they are receiving thousands of claims a day for mis sold payment protection insurance claims. From January to June, payment protection insurance claims counts have reached 2.2 million in total. Both Lloyds and Barclays have received over 400,000 claims in the previous six months. In the last month, Lloyds received over 20,000 claims. Barclays received over 19,000.
You have the right to make a payment protection insurance claim. You were actually sold by your financial adviser an insurance policy that did not benefit you because it excluded certain cases that never benefited you. It was not only you who was ripped off.
Recent statistics from the Financial Services Authority show that over 70% of claims coming in to the FOS are related to advise, suggestion and guidance by financial advisers. These so called “Bonus Chasers” are actually the main culprits of mis sold PPI. However, FSA managing director Martin Wheatley states that he intends to reform the banking incentives system to ensure the customers are getting a fair deal.
The numbers of PPI claims in the country, and its continuing increase, is stated by the consumer group Which? as the worst financial scandal the UK has ever seen.
FOS also reports that some banks continue to hold or reject claims from their customers. It was previously stated by the High Court that all banks are to refund their customers for mis sold PPI. If you have a PPI but you can’t make a claim because you aren’t eligible, you are to be refunded your repayments. You have actually paid tens of thousands of pounds monthly for mis sold PPI.
You can get claiming assistance from reputable claims companies such as www.PPIClaims.co. They can provide you free consultation and claiming as well.
UK citizens who intend to file a claim nowadays will find that they can reclaim their repayments faster with a higher rate of success. This is thanks to the efforts of the Financial Services Authority (FSA), which established the new claims process. Upon defeating the legal challenge of banks pertaining to the guidelines in 2011, the FSA has won UK a compensation package amounting to £3.2 billion (now £5 billion) in repayments. Last year alone, millions received from the £1.9 billion the banks paid out in successful PPI claims
The consumer group Which? successfully made an agreement with banks and PPI providers to allow UK citizens to claim directly to their respective PPI providers. Claimants only need to write a letter to their banks and PPI providers and discuss the claim in person to settle the amount. The consumer group’s proposal intends to make simpler the unnecessarily complex PPI claims process nowadays.
Payment protection insurance (PPI) is the only UK financial product condemned not because of any malfunction, but because of the way it was sold. Experts state that commission-basd financial advisers are to blame for the fiasco. Using unfair sales methods, what was supposedly a year’s worth of repayments for any kind of loan, mortgage or credit card, was forfeited because the customer did not initially comply with the PPI’s requirements.
However easy and possible it is to earn your repayments through a PPI claim nowadays, successful claimants state that it does not guarantee that you get your complete repayments. This is because banks are handling a large quantity of claims and not all details may have been considered. Ensuring the return of all your repayments will require expert help. It is highly recommended that you seek professional help from claims experts.
Insurance products are definitely something to invest in. While they might be costly, the benefits they provide are indeed very useful. Insurance protects you from suffering from financial damages should such specific situations arise in the future. However, if you haven’t had any use for an insurance, you wouldn’t purchase it right? In the United Kingdom recently, millions of UK citizens were mis sold PPI by their very own financial advisers, leading to the mis sold PPI crisis.
PPI or payment protection insurance is indeed a beneficial product. Many complain not about its function, but only because of the way it was sold. PPI can provide 12 months of repayments for loans, mortgages and credit cards in case the customers find themselves having financial troubles. They can lose wages if they take time off from work to recover from accidents and sicknesses. If they get unemployed during their loan repayment term, the PPI can provide for their repayments. The PPI only requires that the customer purchased the insurance in good health and having a stable employment. They should also be within the claiming age upon the insurance’s maturity.
Insurance brokers, bank representatives and other financial advisers working on a commission basis often present the PPI as something useful for customers. While any customer might have a use for PPI, not everyone can comply with its requirements. However, to make a sale, the financial advisers played with the trust of their customers. Agreeing that they might really need the insurance based on the financial adviser’s judgment, the customer just lost thousands of pounds paying for an insurance policy they can’t make use of.
You can still reclaim PPI your repayments through a PPI claim. However, you’ll need to ensure that you work with a claims expert to ensure the success of your claim. Making a claim might take much time and effort, but having an expert work with you can make the task easier. It also allows you to avoid counter-claims due to legalities. Most claims handling companies offer their services under a no win no fee basis.