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News Tag: PPI

December 10, 2012

Banks still pushing sales despite mis-selling

by Jan Harris
Banks still pushing sales despite mis-selling
Consumer group Which? claims that bank staff are still under pressure to sell products to customers, despite the recent scandals over mis-selling. Mis-selling of Payment Protection Insurance (PPI) has cost banks over £10m in compensation to customers, but bank staff are still being driven by sales targets and incentives to sell products to customers. According to new rules, staff incentives should ...




September 11, 2012

PPI complaints soar

by Jan Harris
PPI complaints soar
The Financial Ombudsman Service (FOS) received 1,500 complaints about Payment Protection Insurance (PPI) mis-selling per day, in the first six months of 2012 The number of PPI complaints received by the ombudsman grew by 42 per cent to 85,562 in the first half of the year, despite banks promising to deal with compensation claims promptly. Businesses are required to deal with complaints within eight weeks, ...




July 9, 2012

Bogus PFI mis-selling claims soar

by Jan Harris
Bogus PFI mis-selling claims soar
The Building Societies Association (BSA) is calling for claims management companies to be more strictly governed after mutual lenders were bombarded with bogus claims over the mis-selling of payment protection insurance (PPI). The number of claims soared by 247 per cent in the six months to the end of April 2012, compared with the previous three months. PPI was routinely sold by financial ...




May 11, 2012

Savings levels soar

by Jan Harris
Savings levels soar
The average balance in an easy access savings account soared by 18 per cent to £1,858 in the first quarter of 2012, according to the ING Direct Consumer Savings Monitor. This is the highest level since the second quarter of 2010, when the typical balance in an easy access account was £2,050. It also represents the first consecutive quarterly rise in savings since 2009. The jump ...




January 26, 2012

Record amount of PPI compensation paid in November

by Jan Harris
Record amount of PPI compensation paid in November
Compensation paid to consumers who were mis-sold Payment Protection Insurance (PPI) reached a record £379m in November, compared with £268m in October. PPI was routinely sold alongside loans to protect re-payments if the customer fell ill or became unemployed, but many people were sold policies that were invalid because they did not meet the qualifying criteria. Lenders were under ...




January 6, 2012

Banks and insurers failing victims of PPI mis-selling

by Jan Harris
Banks and insurers failing victims of PPI mis-selling
The Financial Ombudsman Service (FOS) has criticised banks and insurance companies for their slow response to payment protection insurance (PPI) compensation claims. The huge numbers of PPI claims are overwhelming UK banks, with the result that customers are becoming tired of waiting and are taking their cases to the FOS. The FOS says that number of PPI cases on ...




December 9, 2011

HSBC extends compensation to more NHFA customers

by Jan Harris
HSBC extends compensation to more NHFA customers
Following the recent revelation that HSBC subsidiary NHFA mis-sold asset-backed investment products to elderly people in care, HSBC has promised to consider complaints dating back to before it took over NHFA in 2005. The decision means that HSBC could face thousands more potential claims for compensation, adding to the £30m compensation bill it already expects to pay. NHFA mis-sold the ...




November 14, 2011

PPI customers may face tax bill

by Jan Harris
PPI customers may face tax bill
Customers who were mis-sold payment protection insurance (PPI) are liable for tax on the compensation they receive. The Financial Services Authority awarded compensation to PPI customers who had been mis-sold policies, plus 8 per cent interest on the money they originally spent on the policy. This interest is subject to tax it has been revealed, potentially earning the government several ...




September 28, 2011

Barclays, Lloyds and Santander top FSA complaints list

by Kay Mitchell
”Barclays,
Figures from the Financial Services Authority (FSA) have revealed that the three most complained about British banks are Barclays, Lloyds and Santander. According to the FSA, Barclays received more than a quarter of a million complaints in the first half of 2011. Lloyds received 181,907 complaints in the six month period, while Santander had 168,888 complaints lodged against it. NatWest, Bank of ...




August 25, 2011

Customer complaints down at Barclays

by Gill Montia
Customer complaints down at Barclays
Barclays has improved its customer service, with new complaints down 9% in the first half of 2011, compared with the previous six-month period, to 251,563. However, in the general insurance and protection category, volumes increased 25% to 73,692 with payment protection insurance (PPI) complaints leading the surge. The bank expects PPI volumes to be even greater during the remainder 2011 and says it is ...




August 5, 2011

RBS H1 profits hit by Greek crisis and PPI costs

by Kay Mitchell
”RBS
The Royal Bank of Scotland (RBS) has today unveiled a loss of £1.4 billion for the six months to the end of June. The bank, which is 84% owned by the taxpayer, said its exposure to the Greek debt crisis and costs relating to the mis-selling of Payment Protection Insurance (PPI) pushed it into a loss. RBS lent money ...




August 2, 2011

Barclays profits fall, cuts jobs

by Kay Mitchell
”Barclays
Banking giant Barclays is the latest bank to report its half-year profits and announce job losses. The bank said pre-tax profits came in at £2.6 billion for the six months to the end of June, down one third from the same period a year ago. However, chief executive Bob Diamond said he was pleased with the bank’s performance, despite describing the economic environment as ...




July 27, 2011

Santander H1 profits lower on PPI costs

by Kay Mitchell
”Santander
Spanish banking giant Santander has today revealed its first half profits were hit by costs relating to its mis-selling of payment protection insurance (PPI). The controversial insurance has been a hot topic for some time now and the Financial Services Authority (FSA) introduced a review of the insurance after millions of policies were mis-sold and thousands of complaints were received. Under a ...




June 13, 2011

Barclays will pay compensation over PPI claims

by Kay Mitchell
”Barclays
Banking giant Barclays has today announced it will pay compensation to customers who were mis-sold payment protection insurance (PPI). The bank said it will reimburse those who made a complaint before 20 April the total value of all premiums plus 8% interest. It highlighted that it was the first bank to pay out PPI compensation on a "no-quibble" basis. In a statement, the ...




May 9, 2011

HSBC reports rise in net profit

by Kay Mitchell
’HSBC
Banking giant HSBC has today said net profits grew 58% to $4.153 billion in the three months to 31 March on lower taxes and bad debt charges. However, the bank, which is Europe's largest, said the group's pre-tax gains were driven down by rises in other exceptional costs – such as the £269 million it has set aside in compensation for customers ...




Banks abandon PPI legal battle

by Kay Mitchell
Banks abandon PPI legal battle
The British Bankers' Association (BBA) has today said it will not appeal after losing the court challenge over claims they mis-sold payment protection insurance (PPI). In a statement the BBA said: "In the interest of providing certainty for their customers, the banks and the British Bankers' Association have decided that they do not intend to appeal." The announcement paves the way for billions of ...




April 20, 2011

UK banks in mass payout for mis-selling PPI

by Kay Mitchell
UK banks in mass payout for mis-selling PPI
UK banks are set to lose billions following a High Court ruling over Payment Protection Insurance (PPI). The controversial insurance has been a hot topic for sometime now and the Financial Services Authority introduced a review of the insurance after millions of policies were mis-sold and thousands of complaints were received. Under a PPI policy, an agreed sum of money is paid ...




February 28, 2011

Financial complaints rise in second half

by Kay Mitchell
”Financial
The Financial Ombudsman Service (FOS) has today said complaints rose in the second half 2010. According to the FOS, it received 97,237 new complaints between 1 July and 31 December – a rise of 15% compared with the first half of 2010. This list only covers those complaints which required mediation. Lloyds Banking Group, which is 43% owned by the taxpayer, was at the ...




July 27, 2010

Lloyds confirms it will cease selling PPI

by Kay Mitchell
”Lloyds
Banking giant Lloyds has confirmed it will no longer sell the controversial payment protection insurance (PPI). Lloyds Banking Group, which is 41% owned by the taxpayer, is the first bank to drop PPI sales and the decision will apply to customers of all its brands including the Halifax, Bank of Scotland and the Cheltenham & Gloucester. Under a PPI policy, an agreed ...




May 21, 2010

PPI rarely provides adequate cover

by David Masters
PPI rarely provides adequate cover
"Onerous clauses" on payment protection insurance (PPI) mean that borrowers unable to pay back their loans rarely receive an insurance payout, a finance expert has claimed. David Kuo, director of Motley Fool, said consumers are being duped into believing PPI will cover them if they have legitimate reasons for failing to make loan repayments. "Borrowers think, 'Oh, I'm getting protection in case I lose ...