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MSE News: Claim PPI now as banks call for deadline

"Banks have asked the regulator to set a deadline on PPI mis-selling claims, a proposition we strongly oppose..."
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Comments

  • dunstonh
    dunstonh Posts: 118,547 Forumite
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    The existing rules already exist under the FSA to allow this to take place. Indeed, some lenders are now starting to use those rules.

    The 3 year/6 year timebar can be fine. It doesnt need any permission as the FSA already allow it. However, they cant just start the clock. They would need to write out and tell the person they have PPI and that they have the right to complain about it and what the deadline is.

    I suspect they want guidance from the FSA on how it should be done as I bet they dont want to write to people and are looking to make it easier for themselves.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • VT82
    VT82 Posts: 1,081 Forumite
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    I disagree with MSE on this one.

    If people haven't yet realised that they can claim despite all the hoo-hah, or haven't been bothered to claim so far, and won't have realised or been bothered in the next year despite the proposed advertising campaign, then they deserve to have the door shut in their face.

    The sooner this whole PPI farce goes away, the sooner the shadow industry of PPI reclaiming can go away, the Ombudsman bill can go down, and we can all stop getting so much blo0dy PPI reclaiming spam!
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    I agree entirely with VT82.

    I also wonder how many remaining claims are actually legit versus ones where there wasn't even PPI purchased?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • 2sides2everystory
    2sides2everystory Posts: 1,744 Forumite
    edited 16 January 2013 at 1:10PM
    VT82 wrote: »
    I disagree with MSE on this one.

    If people haven't yet realised that they can claim despite all the hoo-hah, or haven't been bothered to claim so far, and won't have realised or been bothered in the next year despite the proposed advertising campaign, then they deserve to have the door shut in their face.

    The sooner this whole PPI farce goes away, the sooner the shadow industry of PPI reclaiming can go away, the Ombudsman bill can go down, and we can all stop getting so much blo0dy PPI reclaiming spam!
    That is a blindingly ignorant take on it all if you don't mind me saying ;)

    Never mind a deadline, what happened to the announcements that the banks were going to be tasked to write to all PPI customers so that customers didn't need to write to them? That got quietly forgotten - no less than twice in the last three years I reckon.

    PPI was a very bad product. At best it only ever covered part of a customer need. At worst it was useless because the selling organisations had no intention of designing a good insurance product and every intention of stealing money right up front and then denying claims at every opportunity so they could keep it all. £200M a year pure profit on PPI alone one bank was making in the mid noughties.

    Whoever heard such nonsense as charging all the premium up front for the entire period of the loans they were supposed to be selling? Remember that bank staff were daily and routinely ridiculed by their superiors if they arranged a loan without selling PPI with it, and that worse than the double-glazing salesman you can't get rid of so you can go to bed, the banks spent an hour cornering you into not being able to say no to PPI conning you into believing it was FSA mandatory questioning to make sure you were protected by appropriate insurance, then when you finally caved in and said yes and can I have the loan I came to talk about, it took about 5 more minutes to deal with the loan itself which was now 50% bigger than you intended because they'd got you to borrow a shedload extra to pay for an insurance policy ... d'oh! And then charging the same interest on those premiums as for the loan you came in for? And half the bank staff couldn't even be bothered to print out the paperwork for you on proper letterheads ... it slowed down the process to set the printer to do that ... time that could be spent on doing it all again with the next punter. So never mind that half the loans from some banks were "verified" on blank A4 sheets (just sign here and here and here and here ... oh and here) without full company names and registration numbers etc. Never mind ... the computer will no doubt follow up with all sorts of automatic top and tailed stuff later and the direct debits from the bank account - well once that starts then its gospel. ain't it? No-one will notice that at the point of sale it was just a bunch of guff that the customer walked out with. He got his loan. He was happy, and soes my boss because I sold it with PPI Yay!

    The people that introduced all that as a jolly wheeze to the market should be strung up by the proverbials on a post on the foreshore in the City when the tide is out. That might give them a better understanding of periods of risk, and what it might be like to negotiate the right deal under duress when they need something from us.

    Limitation deadlines my aris. Get those promised letters out to all PPI policyholders you've not yet engaged with, you snivelling no good banks :mad:
  • Yet another person who agrees with VT82 .

    If you havn't put in a complaint yet because you didnt know is quite simply nonsense .
    With the amount off work Martin and others have done on this its quite easy to find out if your owed anything .

    There should be a time in place because this could just rumble on for years and years as an example if the banks repaid to everyone who was misssold to by the end off the year the quicker their profits go up and quicker they are no longer burden to the tax payer.
    Lbm Spoke to Payplan August 2009 £29000.00

    current balance £0.00
    Debt free sept 15
  • Alpine_Star
    Alpine_Star Posts: 1,357 Forumite
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    VT82 wrote: »
    I disagree with MSE on this one.

    If people haven't yet realised that they can claim despite all the hoo-hah, or haven't been bothered to claim so far, and won't have realised or been bothered in the next year despite the proposed advertising campaign, then they deserve to have the door shut in their face.

    The sooner this whole PPI farce goes away, the sooner the shadow industry of PPI reclaiming can go away, the Ombudsman bill can go down, and we can all stop getting so much blo0dy PPI reclaiming spam!

    You've completely missed the point here.

    PPI was mis-sold on such a gigantic sale (something in the order of 50 million policies were written) that it would take many more years for the majority of people to genuinely realise that they were effected.

    As dunstonh righty says, as there are established rules (and indeed laws) in place there is no justification for banks to able to disregard them purely because it suits them.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    PPI was a very bad product.

    The world is full of bad products. You look at them and decide whether to buy or not.

    Oh, and there are people putting in PPI misselling complaints who actually made claims on this insurance and were paid out!

    Set a deadline and move on.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Alpine_Star
    Alpine_Star Posts: 1,357 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    supersavor wrote: »
    There should be a time in place because this could just rumble on for years and years

    There is a time and place - it's called the FSA 3 year rule.

    The mis-selling of PPI rumbled on for 2 decades yet reclaiming it has only been going on for a comparitively short period of time.
  • UglyJoe
    UglyJoe Posts: 27 Forumite
    Ohhh, I see the backlash has started. :cool:

    I'm actually all in favour of Martin & his team on this disgraceful attitude by the greedy, unlawful banks.

    I mean, where else can we get 8% annual interest in a relatively risk free environment today, if we can't keep our PPI payments locked up until we want them back?

    Keep up the good work Martin! :money:

    And follow the advice the former MP and NI Minister, Michael Mates famously gave to Asil Nadir inscribed on a watch.
  • 2sides2everystory
    2sides2everystory Posts: 1,744 Forumite
    edited 16 January 2013 at 1:22PM
    gadgetmind wrote: »
    The world is full of bad products. You look at them and decide whether to buy or not.
    Oh right, so it is ok that clever people like you and me know these things and can joust with our banks, yet the majority of those sold it hadn't a clue how the hell it worked, and it is also right that swarms of people as clever as you and me, gadgetmind, certainly used their cleverness to steal money from the masses to please their employer? You do that daily I suppose? No, I thought not. What is this stupid continual denial that broadly nothing much was actually wrong? Even your own wealth as one of the clever ones will have been going backwards as fast as you have been urging it forward in recent years solely because of the activities of mindless parasites yet still you want to ease this particular grip round their scrawny necks? Why?
    Oh, and there are people putting in PPI misselling complaints who actually made claims on this insurance and were paid out!
    Oh and when one bank was making £200M a year pure profit out of PPI alone, the average successful claimant received ... Oh ... one hundred and seventy five quid.

    Oh! Didn't know that I suppose? Well you do now.
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