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Banks Face Additional £1.5Bn Ppi Charge


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HOLA441

The nuisance phone calls have picked up again in recent weeks a sure sign that Osborne's favourite stealth fiscal stimulus is being ramped up into the GE. The master political operator leaves nothing to chance.

A £20bn fraud but no individual prosecuted, censured or dismissed? Remarkable.

https://uk.finance.yahoo.com/news/banks-face-1-5bn-hit-094448398.html

Britain's largest high street banks will announce next week that they are setting aside more than £1bn in additional provisions to compensate customers who were mis-sold payment protection insurance (PPI).

Sky News can exclusively reveal that Barclays (LSE: BARC.L - news) , Lloyds Banking Group and Royal Bank of Scotland (LSE: RBS.L - news) (RBS) will use their half-year results statements to the City to disclose that the big four lenders' combined bill for the PPI scandal has soared to well over £20bn.

The new provisions are understood to be being driven by an acceleration in the number of claims which relate to PPI policies sold before 2005, and have prompted urgent talks among bank executives about the conduct of claims management companies (CMCs).

Insiders said that the new top-ups could reach close to £1.5bn between the biggest banks.

To date, the PPI scandal has seen Lloyds allocating £9.8bn for compensation; Barclays has set aside £3.95bn; RBS has provided £3.1bn; and HSBC's bill has reached £2.1bn.

The sizeable new top-ups may revive calls for a so-called time-barring exercise, which would involve imposing a cut-off point for consumers to submit compensation claims.

Banking sources said on Tuesday that Barclays would account for the largest percentage of the additional compensation bill but pointed out that that was largely because it had not taken a new provision since last July, whereas some of its rivals had done so earlier this year.

The total PPI bill for Lloyds, which is 25%-owned by taxpayers, is expected to pass £10bn as a result of its new provision.

The final numbers are still being worked out with each lender's auditors, which are understood to be pushing board members to take a conservative approach to the issue by setting aside substantial sums.

The scale of the new bill will surprise many in the City, particularly after the Financial Ombudsman Service (FOS) said on Monday that new complaints fell by more than 50% during the last three months, prompting it to say that the worst of the scandal had passed.

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HOLA442
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HOLA443

Guy who runs one of the big claims companies told me that they have been given direct numbers to departments in all the banks named in the article. This is because the fraud was so deep that when some ppi was added to loans, cards etc, it was added to the total and monthly price but the paperwork shows no acknowledgment or mention that ppi was ever added in. They can apparently only tell by using systems to check the figures in each loan.

No reason to doubt him, despite his job he is a good bloke. Couldn't be true though, could it? But incredible if it is.

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HOLA444

I just reclaimed my PPI premiums back from the period 1994-present day.

I got 5 PPI refunds on 5 loans i had 94-2005

£6220

& yesterday I got refunded another £2925 for a credit card PPI policy that ran 98-2008

I've cleared £9173 for the sake of 1 phonecall to my banks PPI helpline & filled in 1 questionnaire.

That's gone some way towards inflation proofing my deposit fund.

I'm really pleased.

If I'd used a claims management company I would've gifted them around 3k of that payout for nothing.

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HOLA445

I just reclaimed my PPI premiums back from the period 1994-present day.

I got 5 PPI refunds on 5 loans i had 94-2005

£6220

& yesterday I got refunded another £2925 for a credit card PPI policy that ran 98-2008

I've cleared £9173 for the sake of 1 phonecall to my banks PPI helpline & filled in 1 questionnaire.

That's gone some way towards inflation proofing my deposit fund.

I'm really pleased.

If I'd used a claims management company I would've gifted them around 3k of that payout for nothing.

Should have left it there - you were getting 8% interest on all of that. ;)

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HOLA446

A total of £410.3m was paid in April 2014 to customers who complained about the way they were sold PPI. This takes the amount paid out since January 2011 to £15.1bn.

This makes the current run rate of circa £400M/month sufficient to take us to the £20Bn total just beyond the next election..

http://www.fca.org.uk/consumers/financial-services-products/insurance/payment-protection-insurance/ppi-compensation-refunds

Edited by Joan of The Tower
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HOLA448

How much proof do you need? Can you just say I think I had PPI on a credit card back in the 90's but I've long since destroyed all the paperwork...

If you suspect you had PPI, send off a Subject Access Request to the lender (with a £10 fee, normally) and they should tell you all the accounts you've held with them and whether PPI was on the account. If it was, send a letter of complaint saying you were mis-sold (for whatever reason, ie it wasn't explained, you already had adequate cover, it was pushed as a condition of getting the loan/card etc etc)

There's loads of info on moneysaving expert which shows the process and provides template letters.

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HOLA4411

I just reclaimed my PPI premiums back from the period 1994-present day.

I got 5 PPI refunds on 5 loans i had 94-2005

£6220

& yesterday I got refunded another £2925 for a credit card PPI policy that ran 98-2008

I've cleared £9173 for the sake of 1 phonecall to my banks PPI helpline & filled in 1 questionnaire.

That's gone some way towards inflation proofing my deposit fund.

I'm really pleased.

If I'd used a claims management company I would've gifted them around 3k of that payout for nothing.

Out of interest, did you willingly sign up for the PPI ?

Did you realise you had taken out the PPI ?

If you'd been off work sick would you have claimed on the PPI ?

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HOLA4412

Out of interest, did you willingly sign up for the PPI ?

Did you realise you had taken out the PPI ?

If you'd been off work sick would you have claimed on the PPI ?

Who cares?

The product was an utter rip-off and widely mis-sold. I say ANYONE who had PPI should put in a claim.

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HOLA4415

How much proof do you need? Can you just say I think I had PPI on a credit card back in the 90's but I've long since destroyed all the paperwork...

Your bank will have all your records dating back as far as they hold them for. You phone your banks dedicated PPI helpline (google it) and lodge your complaint, FSA guidelines are that from the moment you lodge your complaint the whole matter must be investigated and concluded inside 8 weeks.

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HOLA4416

Should have left it there - you were getting 8% interest on all of that. ;)

Funnily enough I've just had that conversation with someone else. Yes the 8% interest is paid up to the current day.

Reading the OP article the banks are talking about having a cut off date again.

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HOLA4417

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