PPI and People in Debt

The PPI scam has uncovered the massive malpractice that the banks and other financial institutions have indulged in with many people making PPI claims to get their money back. If you have been mis-sold a policy, you need to understand about the PPI basics to make a proper claim. The main significant fact you should know in making a PPI complaint is that you should have been mis-sold while taking the policy. Even if you do not have the loan at present, it does not change the fact that you have been mis-sold.

Influence of Financial State on PPI Claims

The financial state you are in will not alter the act of mis- selling any way. Even if you have been bankrupt or taking a debt management plan, you can still make a PPI claim. You should also know that in case you have a debt with the concerned lender in the same account or the debt is related to a past one, the PPI refund you get from the current one can be used to settle the debt. The lender can accomplish this without your acknowledgement, but you can get PPI help if the procedure affects you financially.

Refund Considerations

In case you have purchased a policy before an order relating to the bankrupt state or insolvent state you are in was made, the chances of making a claim is implausible. Irrespective of whether the assets are part of your possessions or they have been discharged, you cannot make a refund.

Making a claim can be done by yourself or with the help of PPI claims companies who specialise in such matters – this would be best if your case or financial affairs are not so straightforward. PPI assistance can be sought from the financial ombudsman services too, but your PPI claims may take some time to be resolved as there are numerous pending cases that are yet to be solved in the PPI fraud.

PPI Claims Management Companies Not To Blame for High Volume of Claims

The Financial Ombudsman Service (FOS) recently reached the 500,000th mark of PPI claims but are still wary of the millions of claims that await processing. Banks complained that claims management companies (CMC) and the Financial Services Authority are to blame for the high volume of fraudulent claims that have swamped the FOS. However, FOS Chief Ombudsman Natalie Ceeney states that it is not the fault of CMCs, the FSA and the customers, but the banks themselves.

Ceeney states that banks should own up responsibility for their actions and avoid hassling and inconveniencing their customers who are making PPI claims for their repayments. It is the exposure of bad bank practices that led to the 2.2 million claims processed from January to June of 2012 and banks are ruled out by the High Court to compensate all who are ineligible for the insurance policies.

The total bill for payment protection compensation by banks have reached £13 billion with Barclays having £2 billion, Lloyds with £4.3 billion and other banks having at least £1.3-1.5 million in their total bill. Recently, Lloyds has a total of over 400,000 claims from complaining customers for mis sold PPI.

“Bogus” claims were a result of how far customers are going against their banks. Ceeney sees the turning of people to CMCs as a qualm of “broken trust” banks have with customers. With virtually everyone in the United Kingdom mis sold PPI, she states that it is still “a ways off” before the crisis finally gets done with.

For more information about reclaiming mis-sold PPI, visit the PPI Claims Company website – www.missoldppiclaimsco.co.uk.