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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 22nd Feb 12, 11:31 AM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Record PPI payouts reached £1.9bn in 2011
    • #1
    • 22nd Feb 12, 11:31 AM
    MSE News: Record PPI payouts reached £1.9bn in 2011 22nd Feb 12 at 11:31 AM
    This is the discussion thread for the following MSE News Story:

    "The FSA says £441m was paid out in December, the highest monthly total on record, completing the total for the year ..."

Page 1
  • JD5
    • #2
    • 23rd Feb 12, 1:38 AM
    Rise of the 'Stupid'
    • #2
    • 23rd Feb 12, 1:38 AM
    I despair, I really do. YES there were shocking PPI misspelling hard cases ‘My 90 year old blind arthritic, self employed grandmother forced to sign by evil moustachioed PPI salesman (Complete with top hat) who pushed her wheelchair onto railroad tracks’ type thing. YES the genuinely vulnerable must be protected blahdy...blah, but the fact is almost everyone I know who’s claiming (and laughing their socks of doing it) is far from ‘vulnerable’ and wasn’t ‘missold’ anything. They got ‘conned’ because they were too stupid (and no, I’m not implying any lack of mental faculty) and/or just too lazy to check, well guess what, that’s how capitalism works, the lazy get fleeced and pay too much for goods/services so generating most of the profits so the savvy and responsible ‘read the small print’ people like me get to pay less for stuff. (Lesson one in Martin’s new Finance Lessons surely?) But now it seems those who mantra is ‘Just buy/sign I can’t be arsed checking’ are to be rewarded, they got the (admittedly dubious) benefit of the insurance and now they get their money back +interest, Well Woopidoo! So are there to be no consequences for stupidity anymore? Did I ‘misspend’ my life being a smart, canny consumer when recklessness might have served me better? Where does this end? We all know ‘stupid’ people pay way over the odds for their holidays/flights/accommodation, when I point out how much I paid for mine (Due to hours of careful and judicious research). Should they continue to politely force a smile and inwardly curse their stupidity, or should they now launch a ‘Overpriced Holiday Misselling Scandal’ campaign as soon as they get home and demand the difference back (+ interest obviously) For all those years of being idiots and paying too much? Are we about to see the Lazy rise up and demand an end to this cruel price inequality between the ‘Stupid’ and the ‘Canny’ consumer? (Frankly I doubt it, would be too much effort for them wouldn’t it?).
  • Interhacker
    • #3
    • 23rd Feb 12, 1:48 AM
    • #3
    • 23rd Feb 12, 1:48 AM
    What a miserable Tw@t
    • dunstonh
    • By dunstonh 23rd Feb 12, 7:48 AM
    • 98,299 Posts
    • 66,546 Thanks
    dunstonh
    • #4
    • 23rd Feb 12, 7:48 AM
    • #4
    • 23rd Feb 12, 7:48 AM
    What a miserable Tw@t
    Originally posted by Interhacker
    problem is that he is right. There are now self employed advisers getting hit with fraudulent complaints. One adviser posted on a forum recently that he had a policeman phone him asking if he had PPI as he thought you would reclaim it because everyone is doing it. The adviser didnt arrange any PPI. A few days later the same policeman phoned back to complain that the adviser hadnt arranged PPI because it now stops him from claiming back the premiums. The adviser has done everything right but now has a complaint to to deal with that is frivolous.

    I mentioned on a thread yesterday of the mortgage adviser that got a complaint via a claims company for mis-selling PPI. It listed all the things he did wrong and all the things he did or didnt say. Problem was he didnt arrange any PPI and the complaint letter was a made up template. The claims company still took it to the FOS and the adviser has to pay £500 even though there is no complaint to answer. He is young, self employed adviser who can't afford that sort of thing to happen.

    My own compliance company reckons that at least 1/3rd of complaints received are now try-it-on/fraudulent. One firm has said that half the complaints they are getting don't even have PPI.

    Wrong doing should be dealt with but the PPI issue has become open season for abuse and who do you think is going to be paying for all those fraudulent complaints?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • downy2008
    • #5
    • 23rd Feb 12, 12:50 PM
    • #5
    • 23rd Feb 12, 12:50 PM
    The problem here is that the banks were making exhorbitant profits from these policies, knowing full well that, for most people, the policies were neither necessary nor value for money. They realised that, by selling these products, they could make exceptionally easy money. 10 years ago, banks were actually trusted by a lot of people to give fair advice, and not to try and fleece every penny from you. It has now come back to haunt them in a major way. Hopefully, this will prevent them from doing things like this in the future. I, like many, many more people, have been able to repay all of my outstanding debts with the PPI that I complained about, but, then again, I wouldn't have had the debt if it hadn't have been there in the first place. People will do stupid things all the time, like taking out 125% mortgages, and people will then default all the time. It is up to the regulators to ensure that these things do not happen


    The IFAs have been caught up in this whole scandal in an unfair manner, and it should be up to the FOS to either waive the £500 fee or have a reduced fee for the independents.
    MBNA Credit Card PPI 1 Upheld - £1314

    MBNA Credit Card PPI 2 Rejected - Complained to FOS....MBNA Upholding....Awaiting Figures ....Cheque Received £5712
  • AndyinLondon
    • #6
    • 23rd Feb 12, 7:35 PM
    • #6
    • 23rd Feb 12, 7:35 PM
    The IFAs have been caught up in this whole scandal in an unfair manner, and it should be up to the FOS to either waive the £500 fee or have a reduced fee for the independents.
    Originally posted by downy2008
    A better solution would be for FOS to refuse to deal with the Claims Management Companies who regularly submit fraudulent complaints. They could set a threshold and then tell the CMC they can no longer represent customers. That would kill their business, whilst still allowing people with genuine complaints to use the services FOS offer. In fact it would improve the service those people with genuine problems receive, because they wouldn't have to wait six months due to the backlog.

    I also understand that the FSA has a statutory objective of reducing financial crime. If submitting a fraudulent complaint on the off chance you'll get a refund of money you never even spent is not a crime, I do not know what is.
    • Mishomeister
    • By Mishomeister 23rd Feb 12, 8:06 PM
    • 834 Posts
    • 198 Thanks
    Mishomeister
    • #7
    • 23rd Feb 12, 8:06 PM
    • #7
    • 23rd Feb 12, 8:06 PM
    While the misselling encouragement was coming from the top of the banks it is the bottom who are now hit the most. I am confident that one of the main reasons the banks now sacking so many of their staff is because they have to find the funds for these PPI compensations. Whilst by claiming for missold(or pretending to be missold) PPI could by you a holidays to Vegas, don't be surprised if you don't see that always nice Cashier Sarah who is always helpfull on the counter or that Customer services officer Billy that has helped you out when you were desperate to increase your overdraft.
    The people who were behind the misseling will continue to get their millions of bonuses. It is the front staff who will be hit hardest!!!
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