PPI: The Scandal, Deadline and How to Make a PPI Claim

Payment protection insurance (PPI) is sold alongside credit cards, mortgages and loans. The insurance covers somebody if they are suddenly unable to pay for one of these products — for example, if they lose their job or become ill. In the right circumstances, PPI is an excellent product.

However, two decades ago, many banks realised that selling PPI was a great way to make a profit. The banks encouraged and, in some cases, pressured staff to sell PPI with products. In the worst cases, some customers didn’t even know they were sold PPI.

The PPI misselling scandal is one of the biggest of its kind the UK has ever seen. The insurance was sold to thousands of people in the UK and, since the scandal came to light, people have been claiming back their money. The banks have paid out billions of pounds for compensation, legal fees and fines, putting a tremendous strain on them over the past 10 years.

This, along with the issue of the Financial Ombudsman (FOS) suffering from a backlog of PPI complaints, has led to the Financial Conduct Authority (FCA) announcing a PPI claims deadline. All claims against mis-sold PPI must be made by 29th August 2019.

Why is There a PPI Deadline?

The ongoing and increasing strain on the Financial Ombudsman is a key part of the introduction of a PPI claims deadline. The FOS is receiving over 1,000 complaints a day and already has a huge backlog of PPI cases to handle. If you have to refer your case to the Ombudsman, it could take up to two years for the FOS to reach your case and attempt to resolve it.

The PPI deadline will gradually ease the pressure on the FOS, which has employed staff specifically to work on PPI claims. It will also ease pressure on the banks, which have put aside millions of pounds each year for the sole purpose of handling PPI claims and giving customers the money they are owed.

But, is the PPI deadline a good thing? Consumer’s association Which? argues that creating a deadline means the process for making a claim needs to be simpler and easier, suggesting being able to make a claim online should be introduced to streamline the process.

How to Make a PPI Claim Against Your Bank

Making a PPI claim against your bank is actually very simple once you are working in cooperation with the bank at fault. The issue is that not all of the banks are forthcoming with contacting customers. Some websites are far from customer-friendly and it may take a while to find the information that you need to make a claim.

For this reason, many customers choose to work with a reputable PPI claims company. PPI claims take a number of months and allowing a claims management company to make a claim on your behalf can save you time. The process will still take a number of months, but a claims management company will handle all communication, saving you the stress of negotiating alone with a bank. Always read the terms and conditions before working with a claims management company and look for a company that offers a low service fee and no win, no fee PPI claims.

Will the Deadline Affect my Claim?

The deadline is likely to cause an influx of people making PPI claims. When the deadline was discussed last year there was a rise in complaints. As long as you start the process now, though, you are unlikely to be affected by the deadline. The process usually takes up to four months, but it could take longer if more people are making claims.

Although August 2019 seems like a long way away, you should not put off making a PPI claim — or at least checking if you’re eligible to make a PPI claim — any longer. Put it at the top of your to-do list so you don’t get caught out miss out on receiving the money you deserve.

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Do You Save For Special Occasions?

As many people do, I have savings accounts for various different things. I currently have my main savings account which I save money in for all different things – whatever I need to save for at that exact moment – and then I also have the savings account connected to my current account where I place 25% of my income for tax. Until this past year, I had never made enough to pay tax but I know that I definitely will be in a position to pay tax when it comes to my next tax return so am saving up to have the funds ready.

But do I save for special occasions? Do you? I do, depending on the actual situation. When you have one child born exactly three weeks before Christmas, then Christmas, then your daughter’s birthday exactly two weeks after (and then my birthday exactly three weeks after that!!), sometimes you do have to save a little to make that money stretch a little further. We have other birthdays in and around December and January also but our main focus is making sure we have money for presents for the children and then focusing on others afterwards – however, when it is your siblings and parents birthdays so soon after, you do have to spend a little and get them a nice present.

https://swiftmoney.com/  are currently in the process of creating an infographic talking about how we spend money on these occasions. Women are more likely to save money for gifts and men rarely do save. This is definitely true in my case – I am always the one saving up for gifts whereas Steve just tends to buy based on what is in his paycheck that month that doesn’t need to be spent on bills. With 68% of people saying there are societal pressure, I would have to agree. However we only buy for a select few people and a select few occasions and try to ignore any societal pressure that comes out way.

They have even found out about people’s thoughts on Christmas gift giving. 38% of people give food and drink as gifts – making these the most popular type of gift given, Whilst we don’t always give food, I can honestly say that drinks form a large part of our gift giving at Christmas, whether it be whisky, vodka or coffee! Gadgets are at 28% and I do buy those occasionally – but only for Jack and Steve – we don’t fork out for anyone not in this household unless we are splitting the cost with someone else.

I now save money and vouchers throughout the year for the kid’s birthdays and Christmas – if I didn’t, I’d never get them anything once the time rolls around. I also enter competitions for things I know people like and would want and give them as extra gifts. When it comes to Mother’s Day, Father’s Day and Easter, we just see what is in our budget and what gifts we can afford – we have never had any complaint yet.

Do you save for special occasions?

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Staying Safe On The Roads

Whilst we all have our own budgets and stuff like that, safety is something we should never shirk on and is something that we should always be considering. When it comes to car safety and thus the safety of my family, of my children, money is no object. But just how safe are your cars? For instance, would you know when your car tyres need replacing?

Cox Motor Parts have created a fab infographic (read more about it here), talking about 10 warning signs that your car tyres need replacing. How many did you know?

Now I’m not the driver in our household but safety is paramount to me and I knew the majority of these. I must admit that I don’t think we change the tyre pressure as regularly as we should do which will be changing as of today and that I know of plenty of people who probably don’t even know half of these. So many of these things happen because people ‘don’t have the money’ to fix them – surely safety comes first?

It is important to have a budget but it is also super important to ensure the safety not only of yourself but your family, other road users and pedestrians too. Knowing what to look for when it comes to car safety is key to avoiding any unnecessary accidents. Why not pay the small amount to replace your tyres when they need replacing rather than run the risk of paying thousands if you have an accident or even paying with your life? It isn’t worth the risk. Get them checked.

How many of these did you know?

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