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Lloyds PPI reclaiming delays – what are the alternatives?

 

Lloyds banking group have admitted that complaints against the possible mis-selling of PPI are taking longer than they should and are now being allowed extra time to settle PPI complaints by the financial services regulators, the Financial Services Authority (FSA).

 

The regulations covering complaints against the possible mis-selling of PPI state that a complaint should be dealt within 8 weeks.  However Lloyds have finally admitted that due to the large number of complaints they are now receiving they cannot complete them within this timeframe.  The financial services regulator, the FSA, have agreed that due to these extraordinary circumstances they will be allowed up to 16 weeks in which to complete PPI mis-selling complaints.

 

These circumstances are ‘extraordinary’ but the question should be asked ‘why are they extraordinary?’.  It is not because Lloyds did not know they had mis-sold millions of PPI policies or that these complaints have suddenly arrived at their offices.  Lloyds sold more PPI policies than any other bank, made more profit from these sales than any other bank and have been dealing with these complaints for years.  So why are they suddenly falling behind?  Are the delays being caused by the fact that Lloyds, along with the other main High Street banks, took their own regulators, the FSA, to court to challenge the rules covering how PPI complaints should be handled?  Which the banks lost.  And then, against the same rules, put ALL PPI complaints on hold while the court case was on going.  

 

Lloyds have no one to blame but themselves for the massive amounts of PPI complaints that are now flooding through their doors.  They mis-sold millions of PPI policies and then they were found out put these claims on hold and caused an even larger backlog.   When the court case was finished all banks were allowed an extension to the normal 8 week time limit, but this extension ended in September 2011, however Lloyds do not appear to have taken enough steps to ensure the backlog of PPI claims has been cleared.   

 

What many people will now be experiencing is lengthy delays in PPI complaints being resolved, lengthy calls to a call center to get the stock answer ‘your complaint is being dealt with and will be answered as soon as possible’.  No amount of shouting or screaming at the call center will speed up your claim and taking your claim onto the Financial Ombudsman Service will only slow your case down even further.

 

 So what it the alternative?   

 

If you don’t want to deal with your complaint yourself, you can use the services of Claim 2 Gain.  Once we have logged your complaint you can relax with the knowledge that we wont stop until your complaint has been resolved, which means that you don’t have to spend hours listening to hold music or get frustrated when you cant get an answer to why your complaint is not being dealt with.  Once we have logged your PPI complaint we will keep you updated and inform you immediately when your case has been completed.  Claim 2 Gain take the hassle out of your claim.

 

No Cold Calling thanks

 

No one likes cold calls and many people have gone to great lengths to try and stop cold callers from contacting them but what do you do when they just ignore the rules?

 

There are guidelines on who can and who cant be contacted out of the blue on the telephone to try and sell you something.  You can ask for your number not to be included in the phone book, you can register with the Telephone Preference Service and you should therefore no longer recieve any annoying cold calls.  However a recent BBC investigation has highlighted that some companies simply ignore the rules and will phone any number they can get their hands on.

 

This is extremely annoying for anyone, but as a Claims Management Company dealing with complaints against the mis-selling of financial products, including PPI, this is a very damaging issue for our business.  All Claims Management Companies must be regulated to conduct claims management activities by the Ministry of Justice and abide by their strict code of conduct.  One of the rules of the code of conduct is that claims companies MUST NOT contact any potential customer without their consent – i.e they MUST NOT cold call.  Claim 2 Gain has never and will never cold call any clients, we do not employ or use the services of any other company that cold calls.  However we get tarred with the same brush as those companies that continually flout these rules and continue to cold call customers.

 

Many of the staff at our offices, including our own Managing Director, have in fact been cold called by rival companies telling them they have a potential claim, so we know how annoying and disruptive these calls are.  Not only have our staff got these calls on their personal phones we continue to get recorded messages and cold calls on our mainline office number!  

 

if you are receiving or have received a cold call from a Claims Management Company please be assured this has not originated and is not associated with Claim 2 Gain in anyway.  If you ever recieve a cold call, firstly make sure you get the company name and then tell them you are reporting them to the Ministry of Justice as they are breaching their regulators guidelines and then make sure you contact the Ministry of Justice and report them as soon as possible.

 

The more reports the Ministry of Justice get about cold calling the better the case they have against the company and the quicker they can take action against them.  If calls don’t get reported, they cant get stopped.  Don’t get angry with cold callers, get even – get them stopped.

Do you trust your bank?

 

There was a time when your local bank manager was a respected member of the community and was trusted by everyone.  Has this reputation now been tarnished beyond repair and can you trust your bank manager (if you actually have one or actually know who they are) or even your bank anymore?

 

It seems that banks and financial companies are being fined more and more often by the regulators, the Financial Services Authority (FSA), and each fine seems to be getting bigger and bigger.  So can we really trust them anymore and do the things they are doing wrong really affect our everyday lives?

 

In short the answer is yes, the things the banks do do affect our everyday lives and they do affect the money we have in our pockets.  For years the banks have been charging people for going over the overdraft limits, even when in many situations it was these very charges that was making people go over their overdraft limits.  Then came the mis-selling of Payment Protection Insurance (PPI), which was mis-sold to millions of people and has meant the banks putting billions of pounds to one side to cover the refunds due to people.  Now the banks have been found to have been mis-selling loan insurance to businesses and have put even more money to one side to compensate the businesses that have been affected.  So what could be possibly be next?  What did come was even more amazing than anyone could have ever predicted, one of the major banks has been found to have been fixing interest rates on the amounts they borrow and lend to make their own profits higher.  It is highly expected that this bank was not alone in this action and it will probably be found that many, if not all, of the other banks were involved in fixing interest rates and making even more profit when they should not have been.

 

If you want to make a complaint against the possible mis-selling of a financial product against your bank, you can of course go to them directly and ask them to investigate the sale and if you are not satisfied with the response you can ultimately go to the Financial Ombudsman Service.  But can you really trust your bank anymore?  Do you really believe they are going to deal with your complaint honestly and fairly? and most importantly, are you going to get the refund you are due?

 

If you go to your bank you will be dealing with a highly sophisticated financial company who deal with complaints all day every day and know the financial regulations very well (they don’t always follow them correctly, but they know them).  You, as a lay person, probably wont have a great deal of knowledge of the financial regulations and probably wont know which regulations cover the sale of which product (there are different regulations covering pensions, bank accounts, PPI and even mortgages – all of which the banks sell), so you are putting your sole trust in a company that mis-sold you the product in the first place to now put things right.  

 

REMEMBER – the banks, that mis-sold millions of PPI policies, and are now telling everyone how helpful they will be with dealing with PPI complaints and that the process is really simple, but these are the companies that took their own regulators, the FSA, to court to try and stop any and all PPI complaints from being made!  

 

But even if you take the matter to the Financial Ombudsman Service (FOS) will you get the help you need?  The FOS are independent of both the consumers and financial companies and were setup by government to make decisions about complaints involving financial services and products.  The important thing to remember is that the FOS are independent of BOTH the consumer and financial companies – THEY ARE NOT ON THE SIDE OF THE CONSUMER.  If your bank or loan company makes an offer that is not in-line with the financial regulations, although the FOS will tell you it is not in-line with the regulations they will not tell you what is wrong and most importantly will not tell you what you are entitled to.

 

Claim 2 Gain are NOT independent.  We are on your side and we will fight your claim all the way and will ALWAYS make sure you get the full refund you are entitled to.

 

Here are just a few examples of how we have helped our clients get the FULL REFUND they are due:

 

Natwest offered £750 to settle a PPI complaint – we got a full refund of £17,414 for our client.

 

Freedom Finance offered £1,000 to settle a PPI complaint – we got a full refund of £21,895 for our client.

 

Lloyds offered £1,018 to settle a PPI complaint – we got a full refund of £7,278 for our client.

 

MBNA rejected a complaint and offered no refund – we got a full refund of £17,228 for our client.

 

Barclays rejected a complaint and offered no refund – we got a full refund of £14,917 for our client.

 

HSBC said there was never any PPI attached – we got a full refund of £7,176 for our client.

 

If you still trust your bank, then you don’t need our services.

If you no longer trust your bank, then you should use Claim 2 Gain.

PPI mis-sold because of bankers bonuses

 

 

The financial services regulator, the Financial Services Authority (FSA), is due to publish a report on the way PPI has been mis-sold to customers because of the incentives and commission paid to staff.  Staff at banks and other financial companies have been paid large amounts of commission for the insurance products they sell and in many cases even if the customer, didn’t want it, didn’t it or couldn’t claim on it.

 

The report states that the way in which banks and insurance company staff were incentivised to sell products was not in the public’s best interest and should stop.  Banks and insurance companies have made huge profits from the mis-selling of insurance products such as PPI because they are usually of low value but offer high margins to the seller.  One scheme involved staff being forced to ensure that 80% of all loans that were being sold had to have PPI attached!  No insurance product should be sold in this way, all insurance products should be sold because the client has a need or a want for them, not because the sales person needs to hit his or her target.

 

Anyone who has been sold PPI should be urgently reviewing their needs for this type of cover and should be questioning whether they were potentially mis-sold this expensive product.   You can of course make these enquiries yourself and ultimately take the matter onto the Financial Ombudsman Service, but would you trust a company that has mis-sold you a product in the first place to put things right for you?  If the answer is ‘no’ then you should be using the services of Claim 2 Gain who will deal with the claim on your behalf.  We don’t charge any upfront fees and only charge a fee, of 25%, plus VAT, if your case is successful.

What do CMC’s charge?

 

If you want to reclaim your premiums for mis-sold PPI on your loan, credit card or any other form of borrowing you can do it yourself and ultimately take the matter onto the Financial Ombudsman Service free of charge.

 

But if you don’t have the time, the inclination or just don’t want to deal with your bank/credit card or loan company you can choose to use a Claims Management Company (CMC).  When choosing a CMC it is essential you choose a reputable company and that you are fully aware of what they will charge.  Most CMC’s will charge 25%, plus VAT of any amounts refunded to you but some will quote much lower figures.  So the company quoting the lowest figure must be the best company to choose then?  Not always.

 

When you make a successful claim for the refund of the PPI you have been mis-sold your bank will refund you the premiums you have paid to date but, if you are still paying for the loan your bank will also reduce the future loan repayments so you are no longer paying for the PPI.   Most CMC’s will not only charge you on the amount you receive as a cash payment, but they will also charge you on the amount you receive in ‘future benefits – the amount used to reduce your loan.

 

This can have a dramatic affect on the amount you pay in fees for using a CMC’s.  Examples of how this can affect the fees you pay:

 

Original loan amount: £20,000

PPI amount added to loan: £5,000

Original monthly repayment amount: £250

 

Your refund offer:

Refund of premiums paid to date (this will be paid in cash): £1,000

Loan reduced by £4,000 (to remove the future PPI payments on the loan)

New monthly repayment amount: £200 

 

COMPANY A – Quoting fees of 15%, plus VAT

The fees you would pay based on the above example.

Fee based on cash amount of £1,000 = £180 

Fee based on loan reduction of £4,000 = £720

Total fee to be paid = £900

 

COMPANY B – Quoting fees of 20% plus VAT 

The fees you would pay based on the above example.

Fee based on cash amount of £1,000 = £240

Fee based on loan reduction of £4,000 = £960

Total fee to be paid = £1,200

 

COMPANY C – Quoting fees of 25% plus VAT 

The fees you would pay based on the above example.

Fee based on cash amount of £1,000 = £300

Fee based on loan reduction of £4,000 = £1,200

Total fee to be paid = £1,500

 

Claim 2 Gain fees GUARANTEEING to only charge 25%, plus VAT on the CASH you receive

The fees you would pay based on the above example.

Fee based on cash amount of £1,000 = £300

Fee based on loan reduction of £2,000 = £0

Total fee to be paid = £300 

 

A you can see from this example not all Claims Companies are the same and not all Claims Companies offer the same good value for money.  In many cases even when a company is quoting a lower fee you can end up paying more than you would with Claim 2 Gain and under certain circumstances could end up paying more in fees than you receive in cash!  When choosing a Claims Company make sure you know how much you are being charged and ensure you fully understand how their fees are charged.  You have been ripped off once by your bank, don’t get ripped off by the people who are supposed to be helping you.

 

Choose carefully, choose wisely and choose Claim 2 Gain.