Should Borrowers ‘Do Their Own’ PPI Claims?

UK Consumer groups Which? and MoneySavingExpert have come together to launch an advertising campaign to encourage victims of mis sold PPI to ‘do their own claims’ rather than using PPI Claims Companies… and get this, they’re also planning to hold a “PPI summit” with the big UK banks and credit card providers with the aim of working together to “restore trust in the reclaiming process”.

This story has been published by all household news channels on the internet and in hardcopy over the past few days. Initially, we didn’t really know how to respond to it as anything that raises awareness of mis sold PPI and encourages people to claim back PPI is surely a good thing… right?

The problem we have is that they’re all focusing their attention on PPI claims companies… again… rather than putting pressure on the banks to repay their customers. If it wasn’t for the work done by some of the better claims management companies, the majority of people who have now successfully reclaimed their money… would never have done so and the mis sold PPI scandal would not have become so prominent.

The banks are still delaying the settlement of PPI complaints without punishment and would love nothing less than for PPI claims companies to disappear altogether… as this would mean that the number of people reclaiming PPI would be reduced by upto 75%.

So if Which? and MoneySavingExpert are going to see this through to the very end… until all victims of mis sold PPI have been refunded then we welcome the move. But we live in a cynical world, so please bear in mind that nobody does anything for free not even these so called ‘consumer champions’. The fact that they’re holding a summit with the banks to discuss how to eliminate PPI claims companies is not supported by us at all.

So… do we think that you should, as Which? and MSE so eloquently put it, do you own claims? Well, that depends on you really. The majority of people that use claims management companies do so because they don’t have the time, patience or confidence to deal with the banks themselves. So, if you feel confident that you can see it through then you should consider it as an option.

We recommend that you use a reputable claims management company because this will ensure that you get back exactly what you are owed. The FOS, FSA and FSCS have all come out and said that you are not  likely to receive anymore money if you use a CMC compared to doing yourself.  And, the MOJ has also told CMC’s that they cannot say that they will get you more than if you do it yourself… but we’ve heard form countless readers and CMC’s that the banks regularly offer less money than is actually owed. We spoke to one bank employee who told us that if he’d had a fight with his girlfriend the night before, then all PPI claims received the next day were going to be rejected!

PPI Claims RejectedPlease consider your options carefully before deciding on which course of action to take. The banks want you to claim yourself because they’ll get away with paying you less and will receive less complaints overall… saving them £billions. But DO NOT chose a PPI Claims Company that resorts to cold calling to obtain your business and do not pay anything upfront to start your claim.

 

Continue Reading

Barclays Admits Error In Mis Sold Interest Rate Swaps

Barclays has today, admitted a second serious error in relation to the sale of interest rate swaps. The bank is now fighting claims that it mis-sold hedging products to small and medium-sized business customers.

The bank has now openly stated that it has mistakenly mis sold interest rate hedges to some small business owners, using a presentation that should only have been shown to professional investors due to the complexity of the product.

A spokesman for Barclays is quoted as saying that “The wording was included in some presentations by mistake,” but added that it “did not influence the way we dealt with our customers”.

mis sold interest rate swaps

This recent admission of error by Barclays, is the second serious mistake uncovered, following a month-long investigation by The Daily Telegraph, that Barclays and other UK banks had profiteered by selling complex derivative products inappropriately to small business owners with no investment experience – no surprises there then!

Last month, Barclays was forced to apologise to the Financial Services Authority (FSA) after evidence was uncovered that revealed the bank had demanded that its clients withhold information from the regulator over the sale of hedging products.

After the revelation, the FSA forced Barclays’ investment bank to write to the businesses affected, telling them they were no longer bound by “confidentiality agreements”.

The latest error will add to the pressure on Barclays amid growing concerns at the potential scale of mis-selling claims against British banks as the banks are still dealing with an avalanche of PPI claims from customers who were missold payment protection insurance.

Continue Reading