okaycuckoo Posted February 20, 2014 Share Posted February 20, 2014 I still don't get it. If the average payout is nearly 3k, what kind of insane loans have people been taking out that warrant such 'insurance' £10k. Seriously. That's the kind of principal sum on which they were charging £3k+/- premium. The cover was offered through insurance companies already bought up by the lenders, giving them vertical dominance of the market. That £3k (or a lender's commission of 90%+ of the insurer's premium) gave them instant realization of the profit they were expected to earn over the term of the loan. Therefore any payments made toward the capital were a cherry on the cake for the lenders. Nobody has gone to jail. Much of the theft will not be recovered. And repayment of the principal + 8% pa is never going to exceed the benefits of defrauding an entire country. The delights of a state-subsidised cartel. Quote Link to comment Share on other sites More sharing options...
Austin Allegro Posted February 21, 2014 Share Posted February 21, 2014 PPI was basically a tax on the stupid. I was offered PPI when I took out a loan - but didn't take it up because it was obvious for anyone with basic maths that it was a bad deal. Its a shame the rest of us have had to pay for their stupidity! The worst thing has been the endless harassment - which must be terrible for old people stuck at home all day - from PPI claims companies making endless calls/sending text messages etc etc. I would personally like compensation for all the rogue calls and messages I have experienced from these companies about my PPI claim. Why aren't they being regulated and fined? It was just as bad when PPI was all the rage and CC companies kept calling trying to flog it. I always explained I didn't need it because I always paid my balance in full each month. They'd then say 'ah but what if you lose your job/fall ill' etc. I then had to explain that I had something called 'savings' which would enable me to pay off any debts. There was usually a puzzled silence after that! Quote Link to comment Share on other sites More sharing options...
winkie Posted February 21, 2014 Share Posted February 21, 2014 ....daytime tv.....give £2 to this or that a month, because it is your fault, play bingo to win something back, get a pay day loan to cover expenses, then claim for some blame of another to pay for the lot and buy some extras.... Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted February 21, 2014 Share Posted February 21, 2014 I'm guessing the average PPI policyholder would have a spend thrift profile. No doubt the PPI was a scandal. I went for a personal loan back in the 90s, said I absolutely didn't want PPI but they added it anyway. As soon as I got the repayment schedule I realised the interest rate was something like 12% as opposed to 7% and cancelled the policy I hadn't ask for immediately and they recalculated the schedule at 7%. Guess if you couldn't calculate APRs at the time you were a lamb to the slaughter. Quote Link to comment Share on other sites More sharing options...
winkie Posted February 21, 2014 Share Posted February 21, 2014 I'm guessing the average PPI policyholder would have a spend thrift profile. No doubt the PPI was a scandal. I went for a personal loan back in the 90s, said I absolutely didn't want PPI but they added it anyway. As soon as I got the repayment schedule I realised the interest rate was something like 12% as opposed to 7% and cancelled the policy I hadn't ask for immediately and they recalculated the schedule at 7%. Guess if you couldn't calculate APRs at the time you were a lamb to the slaughter. Want it all, want it now.....the only important consideration is the amount of the monthly repayment....interest compounded on not only the loan but also the insurance, for some if they want something they will take something else if they thought it will see they get what they want now today this minute. http://www.youtube.com/watch?v=1pm4fQRl72k Quote Link to comment Share on other sites More sharing options...
Austin Allegro Posted February 21, 2014 Share Posted February 21, 2014 I'm guessing the average PPI policyholder would have a spend thrift profile. No doubt the PPI was a scandal. I went for a personal loan back in the 90s, said I absolutely didn't want PPI but they added it anyway. As soon as I got the repayment schedule I realised the interest rate was something like 12% as opposed to 7% and cancelled the policy I hadn't ask for immediately and they recalculated the schedule at 7%. Guess if you couldn't calculate APRs at the time you were a lamb to the slaughter. There was a good play on tellie a few years ago about a loan shark, played by John Simms. He ran a catalogue/HP firm that targetted benefits people on a sink estate. In one scene a gentleman, a retired accountant who had hit hard times, asked him what the APR was on the purchases. Mr Simm's character said 'if you know what APR means, what are you doing living in a place like this?' Quote Link to comment Share on other sites More sharing options...
1929crash Posted February 21, 2014 Share Posted February 21, 2014 Should we really be surprised? PPI was commonly taken out by those taking on substantial debt to pursue consumer spending, without doing any due diligence as to whether or not it was worth having. PPI is therefore an obvious bailout for those who are predisposed to be spendthrifts and was almost certain to be used to spend rather than be saved or invested. It really is disgusting, especially as many of the biggest payers of 'compensation' are (now) publicly owned banks so the general taxpayer ends up footing the bill. No, it was sold. In such a case there is often a power and knowledge disparity between the parties. I would agree that the just levels of compensation have acted as a bailout, and this is the point mse Martin Lewis made recently - much of the so-called recovery can be attributed to the extra consumer spend. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted February 24, 2014 Share Posted February 24, 2014 Just a little story. I was at the pub with an alcoholic friend of mine a couple of years ago, his mobile kept ringing and getting text from debt collectors for the loans he had taken out. I knew he didn't really own anything, the money had just gone on beer. He had no interest in paying anything back, new loans had been taken out to make payment on old loans. Technically, the oldest loans had been paid off so he claimed the PPI back on them, even though new loans with other companies were well overdue. Last week, I found out that he had his first £7K PPI payout and was putting that down his neck as well. He is expecting one more payout of a similar amount. I suppose the taxpayer will get their bank losses back as beer tax in this case. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 24, 2014 Share Posted February 24, 2014 (edited) Just a little story. I was at the pub with an alcoholic friend of mine a couple of years ago, his mobile kept ringing and getting text from debt collectors for the loans he had taken out. I knew he didn't really own anything, the money had just gone on beer. He had no interest in paying anything back, new loans had been taken out to make payment on old loans. Technically, the oldest loans had been paid off so he claimed the PPI back on them, even though new loans with other companies were well overdue. Last week, I found out that he had his first £7K PPI payout and was putting that down his neck as well. He is expecting one more payout of a similar amount. I suppose the taxpayer will get their bank losses back as beer tax in this case. The UK governments finances in microcosm. Edited February 24, 2014 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 24, 2014 Share Posted February 24, 2014 Perhaps this illustrates why monetary stimulus directed to the public rather than the banks wouldn't work. They'd just spunk the lot rather than paying down their debt. The result being rampant inflation in the high street and a fauxcovery. Why, have the banks been paying back debt? As an advocate of such monetary stimulus, I'd point out that it's always 'Net of Debt', and would have to be followed by IR hikes - and if I had my way, strict limits on individual borrowing. Quote Link to comment Share on other sites More sharing options...
Reck B Posted March 5, 2014 Share Posted March 5, 2014 (edited) As the majority of claims are processed via VAT registered claims management companies, HMRC will be taking a substantial slice of the compensation. Back of a fag packet calculations There has been £20billion set aside for refunds/compensation say just half of this is processed via CMC's who charge around 25% plus VAT (it's the majority, really) = £10billion x 25% fee = £2.5 billion in fees x 20% VAT = £500million in VAT to HMRC Also, add in the income tax which claimants are supposed to pay on the 8% interest element of their refunds And the corporation tax that these highly profitable CMC's will be paying You can see that the government will make a fair wedge out of the PPI mis-selling scandal fraud. Apologies for replying to myself here, but I under-estimated,. According to todays article in the telegraph, it's around £5billion of fees earned by claims management companies. http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/10677341/Claims-firm-pocket-5bn-of-PPI-victims-compensation.html That's more like £1 BILLION in VAT to the treasury. No wonder why the industry has been allowed to run. Without it, HMG wouldn't have been able to take this substantial slice. Edited March 5, 2014 by Reck B Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted March 5, 2014 Share Posted March 5, 2014 Apologies for replying to myself here, but I under-estimated,. According to todays article in the telegraph, it's around £5billion of fees earned by claims management companies. http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/10677341/Claims-firm-pocket-5bn-of-PPI-victims-compensation.html That's more like £1 BILLION in VAT to the treasury. No wonder why the industry has been allowed to run. Without it, HMG wouldn't have been able to take this substantial slice. It's all just a silly merry-go-round since the PPI compensation comes from the taxpayer in the first place by way of bank bailouts. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 5, 2014 Share Posted March 5, 2014 The UK governments finances in microcosm. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted March 5, 2014 Share Posted March 5, 2014 Apologies for replying to myself here, but I under-estimated,. According to todays article in the telegraph, it's around £5billion of fees earned by claims management companies. http://www.telegraph...mpensation.html That's more like £1 BILLION in VAT to the treasury. No wonder why the industry has been allowed to run. Without it, HMG wouldn't have been able to take this substantial slice. All those claimants could have done it for themselves with minimum effort. And they still would have coughed up the VAT by spending on real stuff. The only person I've met who worked in that claims sector was a laid-off estate agent. £20k basic + £60k commission. So he said. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted March 6, 2014 Share Posted March 6, 2014 All those claimants could have done it for themselves with minimum effort. And they still would have coughed up the VAT by spending on real stuff. The only person I've met who worked in that claims sector was a laid-off estate agent. £20k basic + £60k commission. So he said. Like the £600-£1000 a time you get for assessing the finances of Help to Buyers Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted March 6, 2014 Share Posted March 6, 2014 (edited) All those claimants could have done it for themselves with minimum effort. And they still would have coughed up the VAT by spending on real stuff. The only person I've met who worked in that claims sector was a laid-off estate agent. £20k basic + £60k commission. So he said. I'm so pissed off with all this I'm just going to fire speculative letters to anyone I've ever borrowed money off. Edited March 6, 2014 by 7 Year Itch Quote Link to comment Share on other sites More sharing options...
Reck B Posted March 6, 2014 Share Posted March 6, 2014 All those claimants could have done it for themselves with minimum effort. And they still would have coughed up the VAT by spending on real stuff. Not all refunds are 'cash in hand' - a lot is used to pay the claimants outstanding debt with that bank. If a CMC is involved, the customer still has to pay fees when this happens. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted August 29, 2017 Share Posted August 29, 2017 It's about time for a PPI stimulus! Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted August 30, 2017 Share Posted August 30, 2017 So after years of being bombarded and harassed with multiple texts. speculative calls and letters people still haven't claimed their PPI refunds? Its just a pity the banks weren't just informed to work out the bill - and pay it all to charity. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 30, 2017 Share Posted August 30, 2017 On 19/02/2014 at 7:12 AM, Ologhai Jones said: BBC website: Britons spending PPI cash on holidays and cars. Stuff like this still has the power to surprise me, even though it's always happening. PPI crimes ( how many arrested ? ) happened before banks got bailed out by the government. Tax payers paying for the bankers crimes. PPI is disgusting on so many levels Quote Link to comment Share on other sites More sharing options...
newbonic Posted August 31, 2017 Share Posted August 31, 2017 Has anyone on here actually responded to the texts or ads from companies saying they will do the checking for you, e.g. for credit cards and loans going back 15 years? And did they get any dosh from it? Asking for a friend.... Quote Link to comment Share on other sites More sharing options...
crazypabs Posted September 1, 2017 Share Posted September 1, 2017 20 hours ago, newbonic said: Has anyone on here actually responded to the texts or ads from companies saying they will do the checking for you, e.g. for credit cards and loans going back 15 years? And did they get any dosh from it? Asking for a friend.... A friend of mine works for a major bank in their PPI section, apparently there are a lot of people still claiming and some getting really quite substantial amounts back. Quote Link to comment Share on other sites More sharing options...
RentingForever Posted September 1, 2017 Share Posted September 1, 2017 The real moneyspinner is the interest rate you get awarded on the actual PPI payments - something like 7%? Given that, and a published end date for claims, the smart thing to do is wait until the very last minute to make your claim. Quote Link to comment Share on other sites More sharing options...
newbonic Posted September 4, 2017 Share Posted September 4, 2017 On 9/1/2017 at 9:00 AM, crazypabs said: A friend of mine works for a major bank in their PPI section, apparently there are a lot of people still claiming and some getting really quite substantial amounts back. Thanks for that. I assume the companies that keep prompting people to make a claim via them take a big cut of any payout for their troubles. I've only got the vaguest recollection of what credit cards and loans I had 15-20 years ago though. I've avoided stuff like PPI since I was red pilled by sites like HPC in the mid noughties. Quote Link to comment Share on other sites More sharing options...
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