Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

[pompeyfaith]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

18 May 2011 Last updated at 00:03

Ombudsman receives record financial complaints


The Financial Ombudsman Service (FOS) handled a record 206,000 formal complaints in the last financial year - a rise of 26% from 2009-10.
Just over half them, 51%, were about payment protection insurance (PPI).
The 105,000 PPI complaints were a record for any type of financial policy in a single year.
The FOS tries to deal with problems financial businesses fail to resolve themselves.
Its chief executive, Natalie Ceeney, said the service, which started 10 years ago, had had its busiest year to date.
"We have received more calls to our front-line consumer helpline than ever before," she said,
"And even though we have been able to resolve four out of five problems and enquiries at this early stage - by giving general advice and guidance to over 800,000 people on what to do next - we have still had more consumers come to us with formal unresolved disputes than in any previous year."



More at:



http://www.bbc.co.uk/news/business-13426127

[EXC]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Lenders sought PPI rate cut


Banks that are having to repay billions of pounds of mis-sold loan insurance fought to convince regulators to slash the interest due on compensation claims before they launched a failed legal battle over the sale of the product.

A number of institutions raised objections to the annual interest rate of 8 per cent – the standard level for consumer redress that applies to payment protection insurance claims – according to a previously unreported section of a consultation paper released by the Financial Services Authority last year.

Some banks suggested the rate should fall to as low as 1.5 per cent, which they argued would better reflect the likely returns borrowers could have achieved by investing the money elsewhere. Their complaints – which were overruled by the FSA – were an attempt to soften the blow of what has become the biggest consumer pay-out in decades.

Last week the banks dropped their legal dispute over PPI – which covers loan repayments if the borrower falls ill or loses their job – after Lloyds Banking Group said it would start refunding customers.

The four biggest UK banks face more than £5bn ($8.1bn) of claims. Customers who were mis-sold PPI will be refunded their premiums, with interest from the date each premium was paid until the case is settled.

Financial advisers calculate the typical interest rate of 8 per cent on PPI claims could be as much as 20 times the equivalent rate available from an average cash account in recent years. In one example cited by Brunel Franklin, the claims management firm, a borrower received more than £1,000 interest on PPI payments of £6,500 paid out over four and a half years.

“Investors are unlikely to get that rate in another product over the past six years,” said Ben Heffer, an insurance analyst at Defaqto, the consultants.

However, advisers pointed out that the 8 per cent rate still did not match the level of interest many borrowers paid on loans.

In a paper published in March 2010 that outlined industry reaction to the proposed overhaul of PPI, the FSA said: “Some industry responses objected that the rate of 8 per cent simple interest that the proposed guidance applies to redress payable by firms to complainants is too high and should be reduced, being more than an investor could have obtained.”

It noted that the banks referred to a lower rate of 1 percentage point over the Bank of England base rate – a level recommended for court awards by the Law Commission in 2004. The regulator did not reveal which banks objected to the 8 per cent rate, although sources close to the process signalled the biggest providers, which include Lloyds, Barclays, Royal Bank of Scotland and HSBC, gave “strong feedback”. None of the biggest banks was willing to have their responses published by the FSA.

The ethically minded Co-operative Bank has set aside £90m to compensate customers who have been mis-sold payment protection insurance.

The amount is a small fraction of the £8bn that analysts estimate could be paid out by the banking industry as a whole – but is nevertheless an indication of how widespread the mis-selling of loan insurance was.

So far the four biggest sellers of PPI – Lloyds Banking Group, Barclays, Royal Bank of Scotland and HSBC – have made provisions totalling more than £5bn to refund customers who were sold loan insurance when they did not need it or did not know they were buying it.


FT.com / Companies / Banks - Lenders sought PPI rate cut

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

This is actually news - 12 May.


http://www.moneymarketing.co.uk/regu...030903.article

New FSA crackdown on complaints.


The FSA will force firms to report all complaints involving claims for over £5,000, even when they are disputed and not upheld by the Financial Ombudsman Service.
The FSA’s consultation on data collection, published this week, says firms will be required to break down their complaints record according to advisers’ individual reference numbers.

Head of investment policy Peter Smith says this would include complaints that have been dismissed by the firm and the FOS.
He says: “We are interested in resolved or dismissed complaints because it shows the pattern of firms’ and individual advisers’ interactions with customers. Complaints data is no more than an indicator of potential issues but if an adviser is getting complaints all the time, regardless of whether they are dismissed or not, it raises the question of why that is the case.”
Smith concedes that within the FSA there has been debate about the level of disclosure needed for complaints.

Under the FSA’s proposals, firms will also be required to provide a breakdown of the adviser charging models they use as part of their retail mediation activities return.
This would include whether the firm is providing independent or restricted advice, initial or ongoing advice and whether payment is collected directly from clients, via product prov-iders or via platforms.
Firms would also have to provide details on minimum and maximum charges, whether adviser charging is on an hourly or percentage of investment basis and client numbers.
The FSA estimates that the proposals will cost the industry £6.7m in one-off costs and £2.9m in annual ongoing costs. The consultation closes on July 8.

Paladin Financial Services managing director Tim Purdon says: “On adviser charging, I question whether the FSA’s proposals would end up interrupting the free market. It is up to advisers and clients to agree charges, it is not for the regulator to intervene.”

[cappo]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

This is actually news - 12 May.


http://www.moneymarketing.co.uk/regu...030903.article

New FSA crackdown on complaints.


The FSA will force firms to report all complaints involving claims for over £5,000, even when they are disputed and not upheld by the Financial Ombudsman Service.
The FSA’s consultation on data collection, published this week, says firms will be required to break down their complaints record according to advisers’ individual reference numbers.

Head of investment policy Peter Smith says this would include complaints that have been dismissed by the firm and the FOS.
He says: “We are interested in resolved or dismissed complaints because it shows the pattern of firms’ and individual advisers’ interactions with customers. Complaints data is no more than an indicator of potential issues but if an adviser is getting complaints all the time, regardless of whether they are dismissed or not, it raises the question of why that is the case.”
Smith concedes that within the FSA there has been debate about the level of disclosure needed for complaints.

Under the FSA’s proposals, firms will also be required to provide a breakdown of the adviser charging models they use as part of their retail mediation activities return.
This would include whether the firm is providing independent or restricted advice, initial or ongoing advice and whether payment is collected directly from clients, via product prov-iders or via platforms.
Firms would also have to provide details on minimum and maximum charges, whether adviser charging is on an hourly or percentage of investment basis and client numbers.
The FSA estimates that the proposals will cost the industry £6.7m in one-off costs and £2.9m in annual ongoing costs. The consultation closes on July 8.

Paladin Financial Services managing director Tim Purdon says: “On adviser charging, I question whether the FSA’s proposals would end up interrupting the free market. It is up to advisers and clients to agree charges, it is not for the regulator to intervene.”

none of them will like that!

[pompeyfaith]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

http://www.guardian.co.uk/money/2011...sselling-banks

High street banks are not able to cope with the torrent of claims for mis-selling of payment protection insurance (PPI), according to the Financial Ombudsman Service.

What a shame and no sympathy from me as they should of thought of that before they put claims on hold.

Get more staff and sort it otherwise you will start to see a flood of N1 forms dropping in your mailbag.

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

No sympathy from me.

Well they know what they must do, they need to pull their fingers out where they've been and get on with them, stop sitting on them!!!!

They put themselves in this position!

[pompeyfaith]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

As the saying goes " you reap what you sow" and that holds true

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

As the saying goes " you reap what you sow" and that holds true

Too damn right PF!

And what happened about these banks hiring more staff?

Most of them won't be trained either I don't expect.

http://www.compliancy-services.co.uk...ppi-complaints

[morpheus]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Hi Guys and Gals, thought this might be of some interest to you:

PPI mis-selling claims swamp banks | Money | The Guardian

The Ombudsman said the largest payout was £44,000.00.... Wowzers, didn't think it was possible. Scamming people on an epic scale!
Average Compensation is £2750.00. That is a lot of money
One consumer received £100,000.00 (over a few claims).

These figures are mind-blowing!

[enaid]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

and yet another warning

Ceeney said. She also warned consumers not to bring their complaint via a claims management company. "Our research shows 76% of complainants are using a claims management firm, but these companies charge up to a quarter of any resulting compensation and they do not improve anyone's chance of a favourable outcome. The ombudsman service is free to use"

[pompeyfaith]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Morpheus,

Indeed this sorry mess is a lot bigger than we are lead to believe indeed my multi policy claim with the co-op totalled just under £9k and I still have a few to go yet.

All the figures flying around by the media are under estimated by a long shot and there will be many more large claims.

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Have we had one success here yet (with the ones involved and that was held up due to the JR)?
And since this BBA thing now over?

Surely the banks are not still saying they are waiting for guidelines from the FSA before they get on with complaints?
The FSA want them to get on with them now with the rules already set up for them???

I did actually email the FSA about this yesterday, although not expecting an answer so soon, we know what its like a month or so on before we do.

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

How banks are dealing with PPI claims

Financial Mail
15 May 2011

http://www.thisismoney.co.uk/credit-...in_page_id=506

As lenders abandon their five-year struggle against repaying mis-sold loan cover, we compare how the High Street banks are handling PPI claims. You may also want to read Financial Mail's full report on PPI.

[skv123]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Lenders sought PPI rate cut

FT.com / Companies / Banks - Lenders sought PPI rate cut

Has anyone been able to make progress against RBS?

RBS are stil making offers as "gestures of goodwill" when they state verbally the complaint has been upheld. They are refunding the PPI paid but not offering the 8%.

I have spoken to them directly and got nowhere other than being told their policy is not to pay it adn if we want it we must go to the FOS.

I have also written to the FSA on the point. I just wonderd if anyone else had any experience?

[flossie]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Same here. They have offered me goodwill gesture but no interest and PPI only back 6 years. I have refused and stated why. Not yet received any reply.