PPI Claims Against First Plus

PPI Claims Against First Plus
PPi Claims Against First Plus So what are the major areas that people have been mis-sold PPI and how are they currently being compensated? Research has identified the following common missold PPI problem areas: • Borrowers are often sold completely inappropriate policies that they cannot claim on • Policies will not pay out because of pre-existing medical condition clauses not identified at the application stage • Borrowers are not aware that a lump sum has been added to their loan • Borrowers are not aware that the insurance lasts only for the first five years but the loan may be 10, 15 or even 25 year term • Borrowers are told that they had to take out the policy to qualify for the loan • Borrowers were not advised that a cheaper monthly payment options was available • Long term accident and sickness policies were not offered as an alternative • Age limitations for making claims were not explained to borrowers • Borrowers needs were not properly analysed by sales staff • Self employed borrowers were sold redundancy packages • Unemployed borrowers were sold policies • Borrowers on the sick were sold accident and sickness policies And the list goes on and on..... In hindsight, it can be seen that the lending industry ran amok over borrowers and often it was the most desperate borrower that ended up paying the highest price. So, what happened to straighten out the industry and what helped to stop the perennial abuse of the UK borrower? The insurance industry became regulated in January 2005 and became the responsibility of The Financial Services Authority (FSA). It became apparent to the authority that complaints against these lenders were on the increase as borrowers began to realise that they had been badly treated by lenders and policies that they had been sold were not paying out. As complaints went up, so the fines against lenders increased. By January 2007 stories began to emerge of small companies being fined and headlines read as follows: ...... The FSA fined three small firms for poor practice in selling PPI - Regency, Loans.co.uk and Redcats. It has imposed a public censure on Eastern Western Motor Group and action was taken against Capital Mortgage Connections and Home and County Mortgages. But the industry ignored these warning signs and continued with its tirade of abuse and failed to heed the warning signs. By September 2008 most of the big boys (lenders) had been taught a lesson by The Financial Services Authority (FSA) for misselling PPI and fines had been dished out ranging from Egg being fined £721,000 to Alliance & Leicester being fined £7 million in October 2008, to mention a few. Eventually, it became necessary to change legislation and from May 2009 totally banning the sale of single premium PPI. Further to this, lenders now have to wait a minimum of fourteen days before they can approach borrowers about arranging a monthly PPI policy to protect the loan. PPI Claims Against First Plus So how does a borrower go about getting compensation for being missold a PPI policy now that you realise that you may have a claim? There are a number of different options available and each one has its advantages and disadvantages: The DIY Route • You can write directly to the lender and negotiate a claim yourself. • You may seek help from the Financial Ombudsman • You can contact and liaise with government bodies e.g. Citizens Advice Bureau. Instructing a Solicitor • You may prefer to instruct a solicitor to act on your behalf, to collect the relevant information and pursue your claim. • There may be charges attached to this service Upfront Charging Claims Companies • There are a variety of specialist claims management companies who offer their services. • Some request an upfront charge of up to £500 (and £100 for each subsequent claim) and may also take a percentage of your settlement fee. Claims Online • You can claim online using the services of an internet based claims management company. • There may or not be an up-front charge for this type of service but the claims management company will take a percentage of the value of the settlement. • You will be required to provide the full relevant information for each claim application No Win No Fee Basis We work on a No Win No Fee basis, where you pay nothing unless we obtain you compensation and then you only pay us if your claim is settled at 25% of any sum negotiated on your behalf email for more info joe@financialreclaims.co.uk Call us now on 0800 410 1214 Renaissance business finance is a trading name of Financial Reclaims Limited who are regulated by the Ministry of Justice in respect of regulated claims management activities. Our authorisation number is CRM20246 and our registration is recorded on the Ministry of Justice website www.claimsregulation.gov.uk Tags: PPI Claims Against First Plus, PPI Claims Against First Plus, PPI Claims Against First Plus, PPI Claims Against First Plus, PPI Claims Against First Plus, PPI Claims Against First Plus, PPI Claims Against First Plus, first plus, first plus, first plus, first plus, first plus

PPi Claims Against First Plus

So what are the major areas that people have been mis-sold PPI and how are they currently being compensated?

Research has identified the following common missold PPI problem areas:

• Borrowers are often sold completely inappropriate policies that they cannot claim on
• Policies will not pay out because of pre-existing medical condition clauses not identified at the application stage
• Borrowers are not aware that a lump sum has been added to their loan
• Borrowers are not aware that the insurance lasts only for the first five years but the loan may be 10, 15 or even 25 year term
• Borrowers are told that they had to take out the policy to qualify for the loan
• Borrowers were not advised that a cheaper monthly payment options was available
• Long term accident and sickness policies were not offered as an alternative
• Age limitations for making claims were not explained to borrowers
• Borrowers needs were not properly analysed by sales staff
• Self employed borrowers were sold redundancy packages
• Unemployed borrowers were sold policies
• Borrowers on the sick were sold accident and sickness policies

And the list goes on and on..... In hindsight, it can be seen that the lending industry ran amok over borrowers and often it was the most desperate borrower that ended up paying the highest price.

So, what happened to straighten out the industry and what helped to stop the perennial abuse of the UK borrower?

The insurance industry became regulated in January 2005 and became the responsibility of The Financial Services Authority (FSA). It became apparent to the authority that complaints against these lenders were on the increase as borrowers began to realise that they had been badly treated by lenders and policies that they had been sold were not paying out.

As complaints went up, so the fines against lenders increased.

By January 2007 stories began to emerge of small companies being fined and headlines read as follows: ...... The FSA fined three small firms for poor practice in selling PPI - Regency, Loans.co.uk and Redcats. It has imposed a public censure on Eastern Western Motor Group and action was taken against Capital Mortgage Connections and Home and County Mortgages.

But the industry ignored these warning signs and continued with its tirade of abuse and failed to heed the warning signs. By September 2008 most of the big boys (lenders) had been taught a lesson by The Financial Services Authority (FSA) for misselling PPI and fines had been dished out ranging from Egg being fined £721,000 to Alliance & Leicester being fined £7 million in October 2008, to mention a few.

Eventually, it became necessary to change legislation and from May 2009 totally banning the sale of single premium PPI. Further to this, lenders now have to wait a minimum of fourteen days before they can approach borrowers about arranging a monthly PPI policy to protect the loan.

PPI Claims Against First Plus

So how does a borrower go about getting compensation for being missold a PPI policy now that you realise that you may have a claim? There are a number of different options available and each one has its advantages and disadvantages:

The DIY Route
• You can write directly to the lender and negotiate a claim yourself.
• You may seek help from the Financial Ombudsman
• You can contact and liaise with government bodies e.g. Citizens Advice Bureau.

Instructing a Solicitor
• You may prefer to instruct a solicitor to act on your behalf, to collect the relevant information and pursue your claim.
• There may be charges attached to this service

Upfront Charging Claims Companies
• There are a variety of specialist claims management companies who offer their services.
• Some request an upfront charge of up to £500 (and £100 for each subsequent claim) and may also take a percentage of your settlement fee.

Claims Online
• You can claim online using the services of an internet based claims management company.
• There may or not be an up-front charge for this type of service but the claims management company will take a percentage of the value of the settlement.
• You will be required to provide the full relevant information for each claim application

No Win No Fee Basis

We work on a No Win No Fee basis, where you pay nothing unless we obtain you compensation and then you only pay us if your claim is settled at 25% of any sum negotiated on your behalf

email for more info

joe@financialreclaims.co.uk

Call us now on 0800 410 1214

Renaissance business finance is a trading name of Financial Reclaims Limited who are regulated by the Ministry of Justice in respect of regulated claims management activities. Our authorisation number is CRM20246 and our registration is recorded on the Ministry of Justice website www.claimsregulation.gov.uk

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