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PPI – FSA speaks up, but what does it all mean?

In the wake of the Payment Protection Insurance (PPI) scandal, outgoing Financial Services Authority (FSA) chief executive Hector Sants promised to look closely at financial advice given by banks and pledged to carry out a full investigation into the effects that bonus payments and other incentives have on advice given to customers.

 “We do have to get consumers to recognise the inherent limitations of the advice service, which is that it will axiomatically (?) Not always be right”. “Wherever there is the potential for incentives to produce distortion, if it is within our regulatory remit, we would look at it. However, we also have to bear in mind our resources and the ability of the industry to absorb change but I think, ultimately, in term of the wider question, yes, the regulator ought to be interested in all areas where incentives are having a potentially distorting effect on advice.” ...If this statement is meant to reassure customers, then it may have been better to make it in plain English!

High street banks and greedy insurance brokers made an absolute killing mis-selling PPI: it allowed them to make huge profits without offering very much in return. PPI was intended to protect people who had taken out a loan or mortgage and ensure they were able to meet their repayments in the event that they should suffer a sudden loss of income - the reality was that most of those who were paying for it, were not eligible to claim!

Billions of pounds have been set aside by the financial institutions responsible in order to offer maltreated clients who were mis-sold PPI the opportunity to claim back the cash which they paid out for a useless, unwanted or unnecessary service. It has yet to be seen how easy it will be for these individuals to claim, however.

Following the £7.7m fine handed down to Barclays earlier this year for “advice failings” related to the sale of PPI, the FSA suggested the bank may have to pay anywhere up to £42m in compensation, after selling policies totalling more than £700m to over 12,000 customers: for whom the policy was worthless. To date, no senior management have been brought to book personally, or fined for their part in the scandal. Sales staff and advisors were the sacrificial lambs…the punishment: retraining! It seems every time banks get caught cheating customers: banking staff get a few days training – then its business as usual.

With more unemployment and redundancies in the public sector still to come, PPI is a product which homebuyers should not ignore out of hand. For those who are not aware of payment protection insurance; it is an insurance policy which pays out a regular monthly sum to cover mortgage or personal loan repayments should the policyholder be made unemployed, or unable to work through accident or sickness. 

Anyone who suspects they may have been mis sold payment protection insurance should delay no longer, now is the time to take steps to get your money back. This is not a complicated process; just give one of our team a call and we will quickly help establish if there is money due to you. You’ll get an honest answer, one way or another. If you are entitled to claim back PPI, we can help get your money back.






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Congratulations! You're one step closer to receiving your compensation for mis–sold Payment Protection Insurance.


If all details look OK you will receive a Claim Pack through the post, usually within 48 hours. If there are any issues we need to discuss one of our advisors will call you.


Either way you need to return your Pack as quickly as possible to prevent any delays with your claim!