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Are we (CMC’s) the only ones looking out for the poor mis-sold PPI consumer?

CSC slams consumer groups
The Claims Standards Council – the trade body representing the claims management industry – has slammed the actions of consumer group Which? and Money Saving Expert and their current support of the banks over mis-sold PPI claims.
The move follows a letter written to Ken Clarke calling for tighter restrictions on CMCs and the organisations support for the actions of the banks who have mis-sold PPI claims to millions of consumers.
Andrew Wigmore, policy director, said in a statement: “For organisations that pride themselves on consumer protection and who have campaigned for consumer rights to side with the banks on this issue is utterly disgraceful.
“Their current action to protect the banks against the consumer right to make a claim shows breathtaking ignorance and a total disregard for the consumer they profess to protect.

They have clearly forgotten it was the banks that mislead the consumer, mis-sold a product and they are now trying to deny the consumer legitimately making a claim for compensation by targeting claims management companies – the very organisations that have helped thousands of people get the compensation they deserve.
“Which? and Lewis should be ashamed of themselves and cannot now be trusted to protect the consumer interests in anyway if this is what they truly believe is the right course of action.”
According to Wigmore, the CSC has evidence that banks continue to deny payments to consumers and even deny that consumers have been mis-sold a product at all.
“It’s only when legal challenges are made do they admit guilt and pay up – again shameful that Which? and Lewis condone this and continue to support the banks,” adds Wigmore.
“As for their accusation and blatant lies about fraudulent claims, this is yet another bank tactic to deny consumers right to compensation.”

Crystal Legal Services is expanding…and hiring

Great News. Expanding….and hiring

I’m delighted to say that things are really well for Crystal Legal Services. On both the personal injury and payment protection insurance side we having brilliant success in finding lots of people to help and recover money for.
As a result we are growing and have new roles and jobs to fill. Take a look at our blog which has some information about the roles and the company here: http://www.crystallegal.com/blog/index.php/careers-crystal-legal-services/
Some of these will depend on finding new office space as we are also approaching full in our current place. More updates on that soon….. I would be grateful if you could all share/ like this content with your friends. Thanks Ant/ Tony Crystal Legal Services www.crystallegal.com/blog/index.php/careers-crystal-legal-services/ See More
Crystal Legal Services – 0808 168 4200 – Careers @ Crystal Legal Services
www.crystallegal.com
Making the claims process Crystal clear

New starters at Crystal

Crystal Legal PPI Reclaim new staff
8 new starters…happy as larry

A Big Crystal Welcome to our new starters today.

Pam, Stacey, Amy, Denise, Lauren and Laura all join our busy PPI Admin team and will be processing claims for our clients.
Amy P and Jill add to our Sales Champions and will be tasked with finding more potential PPI Reclaim clients for us to help.
A massive welcome to you all. We are sure you’ll fit right in…..

Not all insurance is as bad as PPI

Much of this site has been dedicated to the wrongs of banks and other sellers of PPI. This is mostly due to the high cost, poor cover and aggressive sales practices asssociated with PPI.

However, there are many other types of insurance which “just make sense” (life insurance) whilst others are compulsory (third party car insurance).

Here are 5 Top things you can do:

1. Look at the key risk factors in your life and ask searching questions about what impact poor health, accidents or even death would have on you or your family/ loved one/ dependants. If unsure get some help from a professional.

2. Make a decision on which, if any, you want to protection for

3. Draw up a sensible budget. Decide how much you can realistically spare

4. Seek some financial advice from an expert who is independent and can access lots of different providers products. Don’t just go for the cheapest product. Ask questions about exclusions and restrictions.

5.  Do review your protection as your needs change; new home, children, change of job with different employment benefits

Payouts for PPI mis-selling reach £215m in first half of 2011

According to the FSA consumers have received a total of £215m compensation during the first half of 2011.

The monthly totals for the first six months of the year were: £29m in January, £31m in February, £28m in March, £25m in April, £37m in May, and £65m in June.

FSA

The FSA has upheld three out of four PPI complaints

Source: http://www.bbc.co.uk/news/business-14717453

Crystal Legal Services Comment Tony Shields:

Yet again, UK consumers have been taken for a ride by British banks. Yet despite the widespread publicity and awareness in the media only a small percentage of people eligible to reclaim their PPI have done so.

Although £215m of payoutshave been made  so far in 2011the  represents just one quarter of one sixth  (just over 4%) of the ~£6 billion that the UK banks themselves have put aside for the expected mis-selling claims.

Anybody concerned that they have been mis-sold or would like an independent review of their sale should get in touch with us on 0808 168 4200

PPI Mis-selling backlog – 97% cleared by banks

PPI backlog 97% cleared by banks

Money
The compensation bill for the banking industry has already been set at at least £6bn. Banks have processed more than 97% of their huge backlog of complaints about payment protection insurance (PPI).

After losing a High Court test case in April they were told to deal with 200,000 complaints which they had put on hold pending the hearing’s outcome.

The Financial Services Authority (FSA) gave them until the end of August to either offer compensation, or reject the complaints.

Fewer than 6,000 of the backlog are now outstanding.

Margaret Cole of the FSA said: “We are encouraged that most firms have used the time extension to clear the backlog of complaints received during the judicial review.”

A large number of fresh complaints have still been coming in to the banks, encouraged by the widespread publicity surrounding their legal defeat.

The FSA has said that new complaints generated since April and lodged before the end of August must be processed within 16 weeks.

Fresh cases received after August, but before 31 December, must be dealt with in 12 weeks.

And from January 2012, the banks will have to go back to the normal eight-week timetable for responding to customers’ complaints.

Fresh surge

The FSA revealed this week that the top 16 PPI sellers had paid compensation of £215m in the first half of the year for mis-selling the insurance, with nearly half of that being handed out in May and June alone.

Complaints data published by individual banks in the past week has highlighted how they are being besieged by tens of thousands of disgruntled customers.

At RBS and NatWest in the first half of the year, PPI gripes made up 31% of all NatWest complaints and 47% of those to RBS.

These pushed total NatWest complaints up 24% to 147,109 and RBS complaints up 27% to 68,414.

Last week, Barclays revealed it had received 73,000 PPI complaints in the first half of the year and predicted they would keep on rising in the second half of 2011.

Lloyds also said recently that its overall insurance complaints had shot up to 202,384 in the first half of the year, of which PPI was the biggest part.

Santander

By contrast, the Santander banking group has reported a 14% drop in the total number of complaints it received in the first half of 2011.

They fell to 168,888 from 195,475 in the second half of 2010 .

New complaints to Santander are now 31% lower than they were a year ago.

A bank spokesman explained that, unlike other banks, it had not been a party to the banking industry’s legal action over PPI complaints, and had not put them on hold when they came in during the court case.

As a result, it has not had to deal with a big backlog.

Although most of Santander’s new insurance complaints relate to PPI, they fell from 18,588 in the second half of 2010 to 16,431 in the first half of this year.

Huge bill

Not all PPI complaints from customers will lead to a bank offering a compensation payment.

Those who are turned down have the right to pursue their complaints to the Financial Ombudsman Service (FOS), which has often found in favour of complainants.

At the start of August, the FOS revealed that it had been receiving 900 fresh PPI complaints every day and that these now made up 65% of its total workload.

It has found in favour of customers in 55% of cases.

The result has been a huge bill for the banks.

Lloyds has set aside £3.2bn for compensation payments, Barclays £1bn, RBS group £850m, Santander £731m and HSBC £269m.

 

Due date for BBA final responses

August 31st is the required date for the banks granted an extension following the BBA court action.

The banks granted an extension to their PPI mis-selling cases include; Lloyds Group (including Halifax, Bank of Scotland, Blackhorse, Royal Bank of Scotland (including DirectLine and Natwest), HSBC and Barclays.

As yet there are many hundreds of our clients for whom we have not heard the outcome yet. We expect the final responses to reach us over the next week to 10 days.

We will of course write to all affected customers as soon as we hear the outcome of the PPI complaint.

Santander half-year profits hit by PPI

Impairments down to £259m from last year

By Insolvency News, 30 August 2011. Posted in Industry

Santander UK has posted pre-tax profits of £1.14bn for the first half of the year but saw statutory profit after tax drop by 51% after setting aside £731m to redress customers mis-sold payment protection insurance (PPI).

Gross mortgage lending reached £9.7bn for the period, also down from £12.3bn in the corresponding timeframe in 2010. Unsecured personal lending rates were unchanged at £0.7bn.

Total impairment losses stood at £259m compared to £387m in the first half of 2010, but impairment losses on loans and advances increased by £93m as a result of the inclusion of the Perimeter companies’ impairment losses on loans and advances in the first half of 2011.

The bank said the remaining decrease of £221m was largely due to mortgages and unsecured loans, with the lower mortgage charge the result of low interest rates environment, a high quality mortgage book and effective collection handling.

Lending to small and medium-sized enterprises increased during the first half of this year to £9.6bn, up 27% from £8.5bn in the first six months of 2010.

In its results statement, the bank said: “With inflation running above earlier expectations and significantly above the 2% target level, leading to reduced real value of earnings, the economic environment remains challenging.

“Demand for credit has remained subdued. In the housing market, the number of loans approved for house purchase has picked up from its low point in the recession although in the first half of 2011 demand was slightly weaker than a year earlier, while remortgage activity has been stronger.”

 

Was my PPI mis-sold? 2 of 5. Did you need it?

In the film “Robots” the catch phrase of Mr Big Weld is “See a need, fill a need”.  Sadly, in the UK the catchphrase of most of the banks should be “Fill a need, even if there wasn’t one there to begin with”.

Most of the mis-selling we at Crystal Legal Services see relates to poor matching of consumers needs to what an insurance product can offer.

The FSA’s rules state that an insurance product (including PPI) must be matched to a customers need. Where no need exists, or, where the product doesn’t meet the customers needs, then no insurance should be promoted by the seller.

So, if you have an insurance whose primary benefit is to pay the insured if they lose their pay due to accident or illness, it is hard to see how somebody who gets paid whilst they are off would need (there’s that would again) PPI?

Therefore, if you are a doctor, teacher, civil servant, nurse, soldier, local government officer, tax inspector or any one of hundreds of thousands of “public sector” workers there is a very (very very) strong likelihood that your payment protection insurance was mis-sold – whether you asked for it or not!

Wayne wrestles a bank with another clients case…

At the end of a days friendly team v team competition, Sales Manager Wayne Ruddlesden suffers his forfeit of spending the day dressed as a Sumo wrestler. Never mind Wayne. Nice hat!

Winning PPI Claims

Crystal Legal Services PPI Claims