25Apr

Have you been missold ppi when you financed your car with Close Motor

Filed in PPI Claims Leave a comment

Close Motor Finance PPI: The Widest Range Of Vehicles For Motor Finance

 

Looking for an outlet that finances a wide range of vehicles is easy with close motor finance ppi. There is always something in the outlet that meets your requirements. It can be a car, a van or even a motor bike. Once you have made your choice you can avail of financing and drive off with your choice. Many customers prefer this outlet because of the convenience. There are lots of motor vehicle models to choose from, plus you don’t need to go somewhere else for your financing. Everything is provided right on the spot. The outlet has the widest range of vehicles for motor financing.

There is A Car Model For You

When it comes to choices, there is a car model for you at close motor finance ppi. There are new models and used models available. If you have a car model in mind, whether new or used, close motor has it available for you. It has got a large dealership network that if your car model is not available in one outlet, it surely is available in another outlet. Cars, light commercial vehicles and motorbikes are the most sought after vehicles. These are the choices that await you when you go to the outlet.

There is A Choice of New or Used Models

New car models are the preferred choice. There are some instances however, where a used model may be fit for the situation. A case in point may be light commercial vehicles or vans. When cost is a major factor of your decision, then used models will fit in your budget. With a wide choice of new or used models, your visit to the outlet will be fruitful. There is always a car model for any budget or intention that you have in mind. If you want a car that is in excellent condition but with a cheaper price tag, then a used car from close motor finance ppi is the answer.

There is A Dealership Near You

Some outlets only have one or two dealerships. Close motor finance ppi has thousands of dealerships scattered across the country. This vast dealership network offers the utmost convenience to the customer. There are new and used car models displayed in the various dealerships. Motor financing is also available in all of the dealerships. You don’t need to go to the bank or a financing firm to have your car financed. The large dealership network also offers you a wide inventory of cars, motorbikes and light commercial vehicles.

An outlet with the widest range of vehicles for motor finance is something that customers seek after. No one wants to hop from one outlet after another. That would be a waste of time. At close motor finance ppi, everything is right at the outlet. New car models are available. Used car models in excellent condition are also available. Motorbikes and light commercial vehicles are also there. When you make a choice, you can have if financed right away. You cannot ask for more.

04Apr

Interest rate swap misselling will cost the UK banks billions

Filed in Misselling Leave a comment

Interest Rate Swap Misselling: The Promise of Protection Is Never Accomplished

 

Small Business Enterprises (SMEs) account for more than 90 percent for those who have business related loans and mortgages from banks. They are also the consumer segment that is hit hard by interest rate swap mis selling. For a small business person, a product that protects the interest rate of his existing loan or mortgage is such a welcome relief. The product called interest rate swap is offered by bank financial advisers with good intention. However, things do not turn out as they say. Instead of protecting the interest rate of the small business person, what happened is that the product left many customers in heavy debts.

The Transaction is Simple

At face value, the transaction is simple. You swap or exchange your present loan interest to another form of loan interest. For instance if you have a fixed term interest, you can do a swap for a variable term interest. It can also be the other way around. You are on variable term interest and you swap to a fixed term interest. Behind the facade of the simplicity are complex calculations that many do not understand. Regulators contend that if the small business person fails to understand the swap then the transaction can be labelled, interest rate swap mis selling. The level of understanding of the customer has to be such that he can make an informed decision on the transaction.

The Transaction Involves Interest Movements

The complexity of interest rate swaps involves the interest movements. This type of transaction is considered as part of financial derivatives so it is complex to the lay person. Unless you have a degree or you have taken a course of financial derivatives, understanding the intricacies of the swap can be difficult. This is the reason why regulators believe that 90 percent of the swaps were actually mis sold. Interest rate swap mis selling has become commonplace, because those migrated to the swap did not understand the interest movement. As such, regulators say the customer has been mis sold.

The Transaction Promises to Protect but it Does Not

When interest rate swaps were sold, financial advisers tell the customer that the swap was guaranteed to protect him from changes in the rates that may be caused by upswings in the financial market. But as it is, it does not protect the customer. The experience of those who got into interest rate swap mis selling is that they got into more debt due to interest movements. Instead of having to pay a smaller monthly payment, the monthly payment increased due to interest movements that are difficult to understand. The interest movement is where the banks get to earn more money. The customer gets to pay more than if he had stuck to the traditional loan product and interest rate.

The promise of protection is never accomplished by banks. Those customers who got into interest rate swaps encountered heavier debts as the time progressed. Instead of the interest rate being a factor for smaller monthly payments, the swap has made the interest rate as the factor for larger monthly payments. All is not lost for the customer. You can file for redress against interest rate swap mis selling.

14Mar

Missold Mortgage Protection Insurance in the UK is Widespread

Filed in Missold Mortgage Protection Leave a comment

Missold Mortgage Protection Insurance: Where Do You Put the Blame?

When it comes to missold mortgage protection insurance, a host of questions come forward. Where do you put the blame to the misselling? Can you blame the banks and lenders? Can you blame the brokers? Or can you blame the consumer? The place where you are positioned is where you point your blame. Consumers blame the lenders and brokers. Lenders blame the consumers. Some even blame regulators for the rampant misselling. As a consumer who has taken out mortgage protection insurance, who do you put the blame? You will surely blame the banks.

Lenders Are To Be Blamed for Lack of Information

The primary reason for missold mortgage protection insurance is lack of information given to the consumer. Mortgage protection was designed to protect the monthly payment of the customer in the event he is unable to pay for certain valid reasons contained in the policy. However, most lenders do not explain the contents of the policy in a manner that it is understood by the consumer. Regulators consider a product as missold, whenever the customer is not given enough information to arrive at an informed choice. Lack of information puts the customer in a position of a wrong choice, hence the mortgage insurance in considered missold.

Lenders Are To Be Blamed for Lack of Regulation

Lenders have a network of brokers, financial advisers and sellers who introduce missold mortgage protection insurance to the customer. They are supposed to regulate their ranks. By regulation is meant that the sales script must be uniform and it must contain all the relevant details of the insurance that the customer must know before making a purchase decision. But as it is, brokers want to close the sale fast. Mortgage protection insurance premium is based on the total mortgage amount. The bigger the mortgage amount, the bigger the mortgage insurance premium and the bigger the commission for the broker. Brokers just don’t care about giving adequate information and lenders must regulate them.

Lenders Are To Be Blamed for Capitalism

Consumers also blame lenders for capitalism in connection with missold mortgage protection insurance. Lenders provide their own insurance, so they get to keep all the earnings. It is now an issue of sacrificing the consumer for the sake of profit. Most of the misselling occurs at the level of the broker. But then the blame can go all the way to the lender. By not regulating the operation of brokers and by not minding the situation of the customer, there is misselling right at the level of the lender.

You cannot blame the consumer for any misselling. The customer just does what the lender requires especially if it is related to the mortgage. The blame goes to the brokers and lenders and the regulators know this very well. This is the reason why complaints are entertained and claims for refunds get merit with regulators. Remember that misselling occurs when people break the rules. Brokers and lenders have broken the rules. This is what happened with missold mortgage protection insurance.

31Jan

missold pension: What May Be The Culprit?

Filed in Missold Pensions Leave a comment

It is estimated that millions of workers got into missold pension. Many workers migrated from company based final pension schemes to personal pension schemes. Initially, regulators thought that such an arrangement were beneficial to workers. However, when some workers started to receive their pensions, it was the other way around. To the dismay of regulators, those that migrated to personal pension schemes were not better of financially than those that stayed in company based pension. Because of such a scenario, they have concluded that the pension migration was a clear case of misselling. The nagging question is: What or who may be the culprit?

Is It Wrong Advice?

Many believe that the main culprit to missold pension is wrong advice. This sort of wrong advice does not come from outside the company but from the pension officer himself. If the compliance officer tells the worker that a migration to personal pension scheme is a better deal then the worker will oblige. Without calculating the long-term significance of such a decision, the worker will just say yes and then proceed with allowing the company to look for a personal pension plan. If you discover early that you made a wrong decision, you should make a complaint in writing and let the company receive your letter. You can use this for future reference.

Is It A Company Ploy?

Company sponsored final pension schemes are expensive on the part of the company. They get to shell out millions of pounds annually. What better way to save than to encourage workers to take out personal pension schemes? Some consumer sectors believe that this type of migration to a personal pension is a company ploy to save the company millions of dollars in retirement benefits. However, this may involve missold pension. This may be true or this may not be true. But either way you look at it, if a company no longer gives out final pension scheme which by far is reputed to be the most lucrative on the part of the worker, then a substantial savings occurs.

Is It One Big Scam?

An extreme view by some consumer watchdogs is that the transfer from company sponsored pension to personal pension schemes is one big scam. They surmise it is a scam involving pension providers and companies. By having a strategic alliance with a company, personal pension providers get lucrative sales and in return they can give the company a rebate in whatever form. Some consumers believe that behind closed doors, negotiation after negotiation happens between companies and pension providers, to the detriment of the workers. While this may not be proven outright, in principle it is very possible and may already be implemented.

Wrong advice is the primary culprit in missold pension. A worker even with enough information about the company pension, will always give weight to an advice, specially if it is given out by the company compliance officer. In most cases, the disadvantage of the personal pension scheme is not felt, until you receive your first pension pay-check.

27Jan

Helping or Milking the Consumer ?

Filed in PPI Claims Leave a comment

When the PPI scandal is mentioned, you cannot help but also mention the proliferation of cheapest PPI claim. Many claims firms or claims partners claim to be the cheapest. This may be partially true, because many claims management companies have slashed their fees. From a high rate of thirty-six percent, some have gone as low as twelve and a half percent. This action can both be good and at the same time scary on the part of the consumer. A slash in the rates that big, may mean charges in some other portion of the PPI claims transaction.

 

If claims firms offer the customer a big discount in their fees, are they helping or milking the consumer? This is a very interesting question to answer. For years, claims firms have been milking consumers. They have claimed to help recovering PPI claims plus the interest on the premiums paid. While numerous claims have been paid and recovered by claims firms, consumers advocates have received reports that many have been left with nothing due to hidden charges. It is true that claims management companies are in reality milking the consumer and not helping.

 

If you hire the services of a claims firm or claims partner or claims management company, as they are known by different names, be careful of the condition regarding the fees that says you are charged on the basis of sliding scale charges. In plain language, sliding scale charge mean that you will be charged less with a lesser claim and charged more with a larger amount of claim. This is on top of the advertised fee. Many have been victimized by this ploy of claims firms. They advertise that they are your best option for a claim. They boast of the no-win, no fee method but in reality it is not so.

 

Another ploy of claims firms is hidden extras. Aside from the service fee, they will charge you hidden extras and call it by a variety of names. Some consumers have reported that hidden extras can be disguised as administration fees or communication fees and can go as high as eight hundred pounds. This amount is on top of the service fee that can range from 12.5 percent to as high as 36 percent in some cases. It is clear that claims firms are experts at milking the consumer not helping the consumer as seen with cheapest PPI Claim.

 

You must be aware that there are claims partners that do help the consumer. They are the exception though. Claims firms who charge a low and no hidden fee 12.5 percent are in a way helping the consumer. They may come in few but they are there. You just have to make a careful search and compare notes with others before you.

For More Information Visit PPI Claims Limited (http://ppiclaimsltd.co.uk)

07Jan

PPI on Car Finance: A Good Financial Lifeline

Filed in PPI News Leave a comment

Payment protection insurance or PPI, is sold alongside mortgages, credit cards, loans and as PPI on car finance. This insurance product has the best interest of the consumer in mind. However, PPI has been the subject of bad press and criticism by the media and by consumer groups. A lot of mis selling has happened with PPI and the claims are increasing in number and volume everyday. The claims have reached a point that is required regulators like the FSA to hire additional personnel to help in the processing of ppi reclaims.

The beauty of PPI is that by design it is the most fitting insurance product to cover your monthly payments, in the event you can no longer meet this financial obligation. But of late PPI has come under attack due to the high incidence of mis selling. There are some who blame sales people for the high incidence of mis sold PPI. Others blame consumers for not being responsible enough of informing themselves about the pitfalls of PPI mis selling. Since most PPI policies are strict, sellers usually do not discuss such things but just give the features of the product to close the sale fast. For instances a common exclusion clause includes stress and back pain. Self-employed individuals and students are also excluded from PPI. The incidence of mis selling is indeed high given this two exclusions.

But as a product, PPI on car finance can prove to be a financial blessing. There may be emergencies where you cannot keep updated with your mortgage repayments. Without any warning, you might lose your job. This has happened to a lot of people. Anything can also happen to your health. You can get ill for no reason at all, and this will affect your finances to a large extent. On such circumstances PPI can really prove helpful. As long as you are qualified, the insurance firm is mandated to provide cover and pay your monthly payments.

The FSA recognizes that this type of insurance has some merits of its own. If you take away the mis selling factor, a lot of consumers can benefit from the insurance coverage. But as it is, mis sold PPI has affected a lot of consumers and this has created a chaotic situation, with claims mounting by the thousands daily. Unless steps are taken to improve the product and to eliminate mis selling, this insurance product may well be more destructive than helpful to those who purchased the insurance policy. Insurance firms must be responsible enough to the consumer and to the public by making amendments or changes.

Even the FSA believes that if PPI is properly structured, properly explained and sold with honesty, this insurance type can provide adequate cover for the consumer. It is inevitable to have sudden changes in your personal circumstances, and this is what this type of insurance is all about. Since most mortgages and car finance agreements extend for a few years, PPI coverage can be a good financial lifeline in emergency situations. But regulators have to step in and force insurance firms to stop mis selling. Regulator must make PPI on car finance tailored for real benefits.

12Dec

Is It Really Cheap?

Filed in PPI News Leave a comment

Consumers always go for things where they can get substantial savings. This goes with cheapest PPI claims. Ever since consumers started to patronize claims firms and claims partners, they have been shopping around for those that offer cheaper claims fees. A five percent reduction in the claims fee can translate to a substantial amount when converted into currency. While at present there are still claims firms that charge 36 percent, 35 percent, 30 percent and 25 percent, the rates are going lower. Consumer groups have calculated that even with a 10 percent claims charge, claims firms can still be profitable.

The current rates have gone as low as 12.5 percent and this is good news for the consumer. But even with the service fees at that low rate, the consumer should beware about promises made my many claims firms. If ever you decide to hire the service of one, make sure about the basic things. Be sure that what you hear is what you get. Take the time to read the fine print, if ever there is a service contract that you will be signing. Make sure there are no escalating fees on the service contract. You might end up with nothing if such a thing is included in the contract.

When it comes to cheapest PPI claims, how much is really cheap? The 12.5 percent service fee comes really cheap. But if there are other charges involved, it might come out the same as the high rate of 36 percent plus VAT. One of the issues that you must be extremely careful is the basis of the service fee computation. If the basis of the service fee is the money that you have already paid, then there is no problem. However, if the basis of the service fee is the money you have already paid plus the premiums you would have paid in the future, then your claim may not be enough to pay the claims firm.

One case in point is the experience of a consumer. The claims company that he made as a claims partners charged a 30 percent service charge plus VAT. This consumer however, failed to realize that the basis of the computation included premium paid in the future, as calculated by the minimum PPI for the mortgage. He got his refund but when the service fee was computed, the three thousand pounds that he got, was not even enough. The claims company billed him an additional eight hundred pounds because the amount was not enough to pay the 30 percent service fee. This is a clear case of milking the consumer.

The cheapest PPI claims can only be considered cheap if the rate is small and the basis of such a rate includes only the amount of premium that you paid but excluding premiums paid in the future. You have to be aware of the intricacies concerning claims firms tactics. Otherwise you will end up in a worst financial condition than before you make a claim for mis sold PPI.

07Dec

You Had A Type of Medical Condition

Filed in Uncategorized Leave a comment

Another answer to the question on how was PPI mis sold, has to do with your medical condition. Payment protection insurance is something that is voluntary on the part of the consumer.  Cases of mis sold PPI due to sellers pushing it as a compulsory abound. When PPI is sold but the policy holder has a type of medical condition, this health condition may exclude you from insurance coverage. In this case, payment protection does not work because there are certain types of medical condition that disqualify a person from PPI cover. As a background, illness that is related to back pains is excluded in most insurance policies.

While PPI is primarily designed to protect you, so you can pay for your monthly payments on your loan or credit card, in the event you become unemployed or you become ill, not all illness is covered by PPI. This is a very sensitive and important issue so the broker must explain this adequately to you. The general rule is that a previous medical history disqualifies you from PPI cover. A type of medical condition that affects your capacity to work also is excluded from PPI cover. Any kind of illness, although not pre-existing, but affects your efficiency at the workplace excludes you from insurance coverage.

How was PPI mis sold in this case? It was mis sold, if the broker does not inquire about your medical history or if you have a type of medical condition. It is important that the broker asks you and you give the answer. If the seller assumes that your medical condition is normal, basing it on your application form, when in fact you have a medical condition, then this is mis sold PPI. Most brokers or sellers do not bother to ask, most especially if you look externally healthy. They should ask because this affects your insurance cover. You may now think you are covered by PPI when in reality you are not.

PPI can also be mis sold in a different manner. If the broker does not discuss the exclusions of the insurance and you purchased PPI, then you can claim later on because in reality this is a type of mis selling. Exclusions and inclusions of the PPI coverage have to be made clear to the customer. Otherwise, the customer cannot make an informed decision. The informed decision of the customer forms as the basis if PPI was mis sold or not. In the absence of an informed choice, all conditions are bound to be mis selling.

In all types of insurance, certain types of medical condition are almost part of the exclusion clause. Payment protection insurance is no different. While PPI covers illness, not all illness is covered. Some types of illness are vaguely described so that it will be easy to reject a claim for coverage in the future. An example is that back pains are not covered. If you have an illness and your back is painful, the insurance company can cite that back pains are excluded and they do not provide you coverage. The area on medical conditions affects how was PPI mis sold.

TOP