26/03/2011 by admin.

With more and more banks and brokers going bust, the role of the Financial Services Compensation Scheme (FSCS) is becoming more prominent.  The FSCS will look into financial misselling cases where the customer is seeking compensation from a financial institution that has gone into liquidation and is unable to make any compensation payments itself. 

A recent example of this is are the ppi complaints being received for Welcome Finance. On 8th March 2011 Welcome Finance was declared in default so all ppi claims are now being handled by the FSCS on their behalf.  Once the FSCS receive a ppi claim the obviously cannot contact the seller, but they will make an attempt to contact the PPI policy underwriter and administrators if possible. From here they gather as much evidence of the ppi complaint as possible and make a decision.  

Should they find in favour of the client, the FSCS can pay up to 90% of the compensation the client may have received should they have been able to direct their ppi claims to the bank.  This situation is not unusual and is used more and more by consumers as an increasing number of banks go into liquidation. Some major high street names include Yes Loans and Picture Loans.  

Submitting your ppi complaints and getting back 90% of what you are due is better than nothing although it does take some time and effort. To being with the FSCS will send the person making the ppi claims a questionnaire to complete. The consumer then needs to send this back to the FSCS with all the supporting evidence they can find. This is something quite difficult as the sale of the finance and PPI policy could have been sometime ago. 

This is where is can be good to engage a specialist ppi claims company like Claimline Legal. Claimline Legal has extensive experience when dealing with the FSCS. They can request the correct ppi complaints forms for you, discuss all aspects of your ppi claims and help you complete the forms correctly.  Finally, they can professionally package your claim and liaise with the FSCS ensuring your ppi complaint is dealt with in the quickest possible time.

As a final point it should be noted the FSCS can take several months to review any claims so using a ppi claims specialist is worthwhile. If you have a claim for missold PPI contact Claimline Legal on 0800 779 7457 or online at www.claimlinelegal.co.uk

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13/03/2011 by admin.

Final PPI Claims Bill Colossal

Jonathan Evans MP, chair of the All Party Parliamentary Group on Insurance Financial Services, has warned that the final figure for payment protection insurance mis-selling compensation could end up as high as £4bn.

Speaking in the opening session of the group’s inquiry into the ppi claims Financial Services Compensation Scheme, Mr Evans said that “a significant figure is going to become a colossal figure.”He added that an industry source had told him that the figure in relation to ppi claims could become as high as £4bn.When questioned on the figure, Eric Galbraith, chief executive of the British Insurers Brokers Association said that the figure could be in the billions, but that it is “unquantifiable”.

Mr Galbraith added: “I want to make it clear - we agree with the concept of compensation. The provision for compensation for customers plays an important part in increasing public confidence in financial services.

Payment Protection Insurance (PPI) is sold alongside financial agreements such as mortgages, loans, credit cards and hp and is supposed to protect the consumer should they fall ill or are made redundant and be unable to meet their regular repayments.A conservative estimate previously put the value of ppi claims at £2.6bn but this new figure is much higher and could cause serious compensation funding issues within the banking industry.Consumers who believe they have been missold payment protection insurance can make their own ppi claims direct to the seller, or can use any number of claims management companies.Claims Management companies

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08/03/2011 by admin.

The UK awaits with bated breath as the turmoil surrounding ppi claims rumbles on. the Judicial Review held in January 2011 is soon to be published (some say as early as next week) with banks, regulators and consumers all eagerly awaiting the outcome. What’s up for grabs is absolutely astonishing. It is estimated some £2 billion worth of PPI policies are in existence with a large percentage of those being missold.  

 This was highlighted well over 5 years ago with banks and regulators trading over to how to deal with ppi claims ever since.   The Financial Ombudsman received over 97,000 complaints in the second half of 2010 and upheld 53% of them. How many are ppi claims are unsure but they are on the increase. The knock on effect of this huge rise on ppi claims is the Ombudsman not being able to process them as quickly as it used to, meaning consumers are having to wait many months before their case is being heard.  Adding to this is the news that Welcome Finance, one of the UK’s more well known lenders, has now declared it may be unable to pay any compensation against its ppi claims.

As of 5th March 2011 it was reported that all Welcome Finance ppi claims would now be handle by the Financial Services Compensation Scheme (FSCS).  The same report mentioned the volume of ppi policies Welcome Finance had sold could be around the 500,000 mark.  The FSCS handles cases whereby a company is unable to pay any financial compensation through its own funds largely due to it going bust and being in default. In these cases the FSCS will consider ppi claims and if upheld can pay out up to 90% of the compensation should the claim have gone direct to the seller. 

Either way any claim direct from the consumer, via a Claims Management company, with the Financial Ombudsman or with the Financial Services Compensation Scheme is in for a long and tough journey.  Quite simply, banks cannot afford to keep paying out. With bonuses and shareholder demands they need to conserve cash. The easy way to do that is to screw the consumer. Therefore they will find anyway to delay or even block paying out ppi claims compensation The Judicial Review being just one tactic in a long line. 

However, do not give up. This money is rightly yours. your ppi claim will be heard at some point and if you have genuinely been missold your ppi policy then you have every right to get your money back. For further information contact Claimline Legal www.claimlinelegal.co.uk

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