As the PPI saga continues, the BBC and Daily Mail report that it has now been revealed that Lloyds Banking Group has been forced to pay out hundreds of millions of pounds in addition to original provisions, as claims continue to increase.

Following one of the worst mis-selling scandals in the UK, Lloyds Bank has taken another £375million pound hit to cover PPI payouts. This has increased the estimated total amount set aside to deal with payment protection claims to nearly a staggering £3.8billion for the taxpayer-backed bank alone.

Other major banks have also confirmed that they will have to put aside extra funds to meet claim demands. Barclays have been forced to set aside an additional £300million, Clydesdale and Yorkshire Banks have had to more than double their provision, adding an extra £120million to the fund and HSBC also increased its funds by £130million.

These increases highlight the extent to which payment protection insurance was mis-sold in the UK. The FSA strongly believes that, out of the 12 million customers the banks write to, a total of 10.8 million people could receive a payout.

Thousands of consumers have been affected by the scandal, which was initially expected to cost the banks around £8.6billion in payouts. However, with complaints recently reaching record highs, the banks are having to make extended provisions to meet the demand for PPI redress.

Specialist financial services recruitment firm BrightPool, has revealed that a total of 60 per cent of claim handlers in demand by high street banks were to deal with mis sold Payment Protection Insurance claims in PPI compensation scheme departments. BrightPool also said that 46 percent of those hired as project managers were to work in divisions trying to cope with the influx of missold PPI claims, which have significantly increased in recent months.

Angela Hickmore, managing director of BrightPool, said:

 “Financial institutions have learnt from the difficulties faced at the time of the endowment [mis-selling] scandals and this time are reacting quickly to ensure they can manage the high volumes of [PPI] claims expected for the rest of the year.”

PPI, an insurance sold alongside credit cards and loans to cover payments if the consumer fell ill or lost their job, was widely mis-sold by a range of banks and lenders who often failed to check if the policy was appropriate.

Thousands of consumers across the country have been affected by the scandal, which has cost the banks millions of pounds in compensation. In total, the banks and insurers are expecting to pay out £8.6 billion in PPI payments, including £3.2 billion at Lloyds Banking Group and around £850 million at Royal Bank of Scotland.

This follows official data released by the FSA which shows that PPI complaints have reached record highs, with a rise of 85% in the final months of 2011. There is still a further 12 million customers still able to make a PPI claim, with a total of 10.8 million people who could be entitled to a payout. With PPI complaints continuing to rise, the banks have now had to hire in additional staff to cope with the increased claim workload.

The Mitchell Farrar Group, which runs leading claims management company Investor Compensation with the brand www.ppiclaimback.co.uk, is welcoming the news that banks who mis-sold payment protection are taking proactive steps to contact customers who have not yet claimed, before they make a complaint.

MFG is reinforcing its claims management services as an easy way for customers to get what they deserve from a PPI claim. ppiclaimback.co.uk has helped thousands of people in claiming over £100 million in compensation from a wide range of financial services, including the biggest high street names. However, there are still thousands of people who have not submitted a complaint who may be entitled to a pay out.

PPIclaimback.co.uk has helped manage claims worth on average over £3K per customer, up to £86K and has the resources to pursue consumer claims with vigor and take on the banks. By running a claim through ppiclaimback.co.uk, the customer benefits from an independent professional financial service consultant who can manage the claim from start to finish, taking away the hassle for the customer.

John Goodfellow, Chairman of MFG says:

“We will contact all lenders on behalf of the customer and will manage all correspondence, which, when done privately, can be time consuming and stressful. Our experienced team will fight to make sure that the customer receives their entitlement, including any lost interest”

This advice from Mitchell Farrar Group follows a major landmark in PPI complaints. Until present, the majority of payouts have been awarded to customers who have complained, however, following the FSA guidelines, firms will now be proactive in contacting customers who may have been mis-sold PPI, informing them they may be entitled to redress.

The guidance outlines steps firms should take when writing to these customers, making it clear that any letter they send contains important information which should be read carefully. The letter should clearly state why a customer may have been mis-sold and that they could be entitled to redress, the specific failings that led the firm to believe the customer may have been mis-sold, what they should do about it and how long they have to make a claim. It is unclear however at this stage the specific content of the letter from each Bank and how open they will be with their customers.

Making a PPI claim doesn’t have to be time consuming and difficult. With the expert help of the ppiclaimback.co.uk, customers can receive the payout they are entitled to, without having to take on the big banks themselves.

www.ppiclaimback.co.uk is a trading style of Investor Compensation (Claims) LLP who are Regulated by the Ministry of Justice in respect of regulated claims management activities

For press information please contact:
Vicky Dall or Rebecca Elvin
The Whole Caboodle
T: 01423 523000 or 07803 175191
Vicky.dall@thewholecaboodle.com or Rebecca@thewholecaboodle.com

]]> http://blog.ppiclaimback.co.uk/mitchell-farrar-group-mfg-highlights-benefits-of-ppiclaimback-co-uk-as-fsa-publish-ppi-guidelines-to-banks-who-mis-sold/feed/ 0 http://blog.ppiclaimback.co.uk/ppiclaimback-co-uk-offer-ppi-victims-help-before-its-too-late/ http://blog.ppiclaimback.co.uk/ppiclaimback-co-uk-offer-ppi-victims-help-before-its-too-late/#comments Wed, 18 Apr 2012 09:57:12 +0000 PPI Claim Back http://blog.ppiclaimback.co.uk/?p=77 Continue reading →]]> 7 April

Official data released by the FSA shows that PPI complaints have reached record highs, with a rise of 85% in the final months of 2011. With a further 12 million PPI customers yet to claim, a leading claims management company is urging consumers to claim back what they deserve before it’s too late.

Following guidelines from the FSA urging banks to contact all customers who may be entitled to a redress, PPIclaimback.co.uk is advising people to respond within the three-year deadline for making a claim. More than a million complaints have been made to firms about mis-sold PPI, but the FSA believes that 90 percent of the 12 million are still to instigate a complaint; a total of 10.8 million could still be eligible for a payout.

The banks and insurers are expecting to pay out a total of £8.6 billion in PPI claims; which is insurance sold with loans, credit cards, store cards and car finance to cover payments if the borrower lost their job or fell ill. Consumers should make a complaint within six years of the event of the PPI sale or within three years of becoming aware that they had cause for complaint. Receiving a letter from a bank or insurer advising that you might have a claim will initiate this three-year period but why wait for them to contact you? You can find out if you are entitled to a claim with just one call to PPIclaimback.co.uk

John Goodfellow, Chairman at PPIClaimback.co.uk, says:

“Consumer complaints about financial institutions are up by a fifth, but there are still millions of people who are yet to claim. Many are not even aware they may be entitled to a payout, however with banks now contacting consumers directly, customers must respond within the three year time frame to ensure they receive a full redress.”

www.ppiclaimback.co.uk has helped thousands of people to claim, and has successfully won over £100 million in compensation already. The leading company has helped manage claims worth thousands up to £86K from a wide range of financial services, including the biggest high street names. The customer benefits from an independent professional financial service consultant, who can manage the claim from start to finish.

John Goodfellow adds:

“Our service is an easy way for customers to make a PPI complaint, which when done privately, can be time consuming and stressful. Our primary aim is ensure the customer receives their full entitlement, including lost interest, before it is too late.”

www.ppiclaimback.co.uk is a trading style of Investor Compensation (Claims) LLP who are Regulated by the Ministry of Justice in respect of regulated claims management activities.

For press information please contact:
Vicky Dall or Rebecca Elvin
The Whole Caboodle
T: 01423 523000 or 07803 175191
Vicky.dall@thewholecaboodle.com or Rebecca@thewholecaboodle.com

January  2012

A leading claims management company has slammed the recent news that millions of consumers receiving compensation for being mis-sold Payment Protection Insurance, will be forced to pay tax on their compensation payments.

The Mitchell Farrar Group, which runs Investor Compensation and its website ppiclaimback.co.uk, describes the news as a real blow to consumers who have fought long and hard to get compensation for being mis-sold policies they didn’t need and in many cases wouldn’t have been able to claim against.

Jim Rowley, group managing director at Mitchell Farrar, has tirelessly campaigned for the consumer since the judicial review and throughout the PPI process. He said:

“Consumers won the war over the banks on PPI only to be hit further with the news that part of their compensation payment is due to be given to the treasury. This, once again, is hitting the stricken consumer where it hurts the most and the treasury stands to benefit.”

 

“Consumers who were victims of PPI mis-selling are expected to have to pay tax with an average tax payment likely to be £50 per person. The Government has announced that the the interest on PPI compensation payments will be taxable and would be taxed at 20 per cent, though anyone on a higher rate would pay in excess of this.”

 

“It is the banks who started this debacle and they should be made to foot the bill for this final onslaught.”

For further information see www.ppiclaimback.co.uk

www.ppiclaimback.co.uk is a trading style of Investor Compensation (Claims) LLP who are Regulated by the Ministry of Justice in respect of regulated claims management activities

For press information please contact:
Vicky Dall or Rebecca Elvin
The Whole Caboodle
T: 01423 523000 or 07803 175191
Vicky.dall@thewholecaboodle.com or Rebecca@thewholecaboodle.com