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National Westminster Bank is commonly known as NatWest and is a large retail and commercial bank in the United Kingdom. It is one of the largest banks in the world and is a part of The Royal Bank of Scotland group.

PPI claims of NatWest

UK is suffering from the biggest bank scandal over the last decade. All the media and news channels were receiving texts and calls from the people who have been mis-sold Payment Protection Insurance. This scam was one of the biggest to ever hit UK’s financial sector.

NatWest experienced 70% of rise in the complaints because of mis-selling of PPI policies. Paid figure consists of £300 million, which were used to settle administration costs while the rest was paid to customers.

PPI was an optional insurance policy that was designed to cover the re-payment of debts, loans, mortgages, and other finance if the policy holder was unable to do so.

How to make a claim?

If you want to claim for PPI refundwhich is rightfully owed to you, you will need to be prepared to produce a lump of evidences with respect to the policy in question.

According to NatWest, you will have to produce the following details to the lender, when making a claim for PPI refund:-

  1. All the PPI account policy numbers
  2. All the important details of the policy.
  3. All the information confirming that a PPI policy was mis-sold.
  4. Your employment status when you were mis-sold the policy.
  5. All the details of your savings and your insurances when you bought the policy.
  6. What you took out your money for and the amount you paid off.

 

If after sending your claim with all the relevant information along with clear evidences you receive rejection, instead of giving up you should contact the FOS and fight for yourself or approach an establish claim management company to fight on your behalf.

According to the recent figures about 50% of claims were rejected  due to lack of sufficient documents. If you feel your case is getting more complicated, you can approach a claims company to help you out in making your claims and getting compensation.

Claims management companies have a reputation of helping their customers with knowledgeable services that help them retrieve what is rightfully theirs.

PPI cases are usually same and some of them are really difficult to tackle, and in such situations a CMC can be of great help.

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The financial watchdog has confessed that only one in five potential complaints regarding mis-sold PPI has been made so far, as it set the final deadline of August 2019 for customers to file claims.

The cut-off of 29 August 2019 has aggravated a protest from several consumer groups. But, it’ll be welcome news for the banks that have set aside more than £40bn in order to cover all their compensation payments, as well as other expenses associated with Britain’s largest mis-selling scandal.

The Financial Conduct Authority (FCA) even revealed that they now estimate that around 52m to 64m PPI policies were sold to approximately 30m customers from 1990 to 2010. It’s also uncertain how many of the policies were actually mis-sold. This contrasts with the watchdog’s 2014 estimation of 45m PPI policies, which were worth £44bn in premium.

FCA said that 13million authentic PPI complaints have been made so far and the banks have paid around £26.2bn as compensation to the victims. Till date in excess of 12million customers have received their payouts from April 2011 to November 2015, as per the National Audit Office.

The latest PPI policy figures came out from a freedom of information request that was made by a consultant of a Claims Management Company (CMC). He was the one who said that firms would make a call for judicial reviews of how the watchdog has handled the entire scandal.

He further added that the FCA’s way of handling the scandal is “unlawful, harmful to ten millions of consumers and on the contrary to the FCA’s legislative objective of protecting all the victims. He said that he handled around £16,000 compensation claims related to PPI policies that were sold along with a store-card. His firm has charged 29% of the fee, which includes VAT on any of the compensation awarded to customers.

The founder of a consumer group branded that FCA’s PPI deadline is a mistake. He said that over half of all the cases in the past 12 months where a PPI claim was refused by a bank, but then it was taken to an independent ombudsman, where the denial is overturned.

He further said that until customers can trust banks to deal with their complaints justly in the first place, the move to protect their balance sheets must not happen. This is putting the protection of financial industries ahead of customers. Also, many banks are making it outrageously difficult for individuals to check if they were even mis-sold PPI.

Another expert of a consumer group said that it has been clear for many years that banks must work harder to resolve the PPI claims justly. The present process has been completely inadequate and has driven too many customers to seek assistance of Claims Management Companies.

However, the chief executive of FCA defended its verdict saying, “Putting in place a deadline as well as campaign will only mean that individuals who had been potentially mis-sold PPI would be forcedto take action now instead of putting it off. It is believed that 2 years is a reasonable time period for customers to come to a decision whether they would like to make a complaint or no.”

FCA said that they would be launching a 2 year publicity campaign in the month of August in order to raise the awareness amongst the consumers. The £42m bill will also be paid by the banks involved in the scandal.

As per the watchdog, consumers now have new grounds to make a complaint relating to PPI if they weren’t informed about the commission being paid when they were sold the PPI policy, under the “Plevin Rule”. Customers would receive compensation for any commission that is paid above 50% of the actual PPI value. All the banks should also write to consumers whose claims have been refused and who had paid the commission.

On an average £2,000 is the PPI payout, though some customers got a lot more. The policy was sold along with mortgages, loans and other credit deals, but in most of the cases, clauses mentioned in the insurance meant that people were not able to make a claim and many were not even aware that PPI was added.

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Financial conduct authority (FCA) is responsible for placing the time limit on Payment protection insurance (PPI). You can claim your mis-sold PPI policy up to the end of August 2019, and in order to make a claim, it is important for you to start collecting your evidences and documents, and apply before the deadline.

Reason of setting an end date

The FCA has set an end date to save the banks as they were getting huge amount of PPI claims in the late 1980’s, 1990’s and early 2000’s which was hinting uncertainty with the banks. Many people are against the idea of setting a time limit and think that it is unproductive and inappropriate. It is believed that important measures should be taken to support the customers who suffered and are still suffering from the mis-selling that happened three decades ago.

However, no one is responding to such arguments and thus, there is now no excuse to not claim what is rightfully yours, irrespective of applied PPI policies to any facilities in present or in past.

What should you do to claim compensation?

Firstly, take time to answer some of these important questions: –

  • Have you claimed for PPI in the past?
  • Did you ever have a credit card and a loan?
  • When will your credit card and loan facility finish or is it already finished?
  • Have you ever applied for PPI from any lender?
  • Are you sure that you have never applied for a PPI policy?

It will be beneficial for you, if you will answer these questions and know if you were ever sold PPI and check if PPI was added to the facilities you had or have, and whether they are closed or open, old or new.

Keep a track of time before it’s too late,as after August 2019 you will worry about your old credit card facility that you had in 1990’s and think that you should have checked. However, by then it will be too late for things to workout.

It will be advantageous to consider it as a priority and check now to avoid any kind of disappointment and rush in the future.

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Consumers have received around £1.9 billion in redress payments in the second half of the last year, with Payment Protection Insurance (PPI) acquiring the top position in the list of most criticised about product, as per the figures published by the Financial Conduct Authority (FCA).

The sum total of gripes reported by companies in the second of the previous years was around 3.04million and the lion’s share associated with PPI, accounted for roughly around 895,000 complaints and around £1.46bn in redress.

FCA’s data-which came in just 2 months after the statistics generated by the Financial Ombudsman Service (FOS)-showed that an excess of 36,000 new PPI cases had been brought up to the ombudsman between the months of October and December 2016. This has amounted up to 51% of the 70,900 products and service gripes in that quarter.

The most recent figures show that PPI complaints will continue to flood in, even when the FCA pushes ahead along with the roll out of deadline on PPI reclaiming-scheduled on 29 August 2019.

Nevertheless, the financial watchdog has recently been sent a formal letter to kick-start the legal process that could perhaps lead to a judicial review of the contentious time-bar on PPI claims.

Excluding PPI, the amount of gripes recorded by FCA in the second half of 2016 was 2.15million. Other most criticised about products include current accounts-this is second in the list with around 514,000 complaints, credit cards-this is the third product in the list with just about 313,000 complaints and packaged back accounts-this is new to FCA’s list, which has over 172,000 complaints.

The sum total of gripes recorded in the 2016’s second half is on the higher side in comparison to the last reporting period, since under FAC’s new rules and regulations every complaint is now mentioned in the data.

This data even reflects the truth that under these new rules, financial firms have a longer period of time to resolve gripes through less official channels. Firms get three days in order to address a complaint to the customer’s satisfaction.

The executive director at the FCA said that consumers simply want to be assured that their worries will be dealt with justly and rapidly. Also, all this data will offer them with enhanced intelligence on complaints, which includes detailed data in order to show where the financial industry is failing customers at product level.

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The financial watchdog has confessed that only one in five potential complaints regarding mis-sold PPI has been made so far, as it set the final deadline of August 2019 for customers to file claims.

The cut-off of 29 August 2019 has aggravated a protest from several consumer groups. But, it’ll be welcome news for the banks that have set aside more than £40bn in order to cover all their compensation payments, as well as other expenses associated with Britain’s largest mis-selling scandal.

The Financial Conduct Authority (FCA) even revealed that they now estimate that around 52m to 64m PPI policies were sold to approximately 30m customers from 1990 to 2010. It’s also uncertain how many of the policies were actually mis-sold. This contrasts with the watchdog’s 2014 estimation of 45m PPI policies, which were worth £44bn in premium.

FCA said that 13million authentic PPI complaints have been made so far and the banks have paid around £26.2bn as compensation to the victims. Till date in excess of 12million customers have received their payouts from April 2011 to November 2015, as per the National Audit Office.

The latest PPI policy figures came out from a freedom of information request that was made by a consultant of a Claims Management Company (CMC). He was the one who said that firms would make a call for judicial reviews of how the watchdog has handled the entire scandal.

He further added that the FCA’s way of handling the scandal is “unlawful, harmful to ten millions of consumers and on the contrary to the FCA’s legislative objective of protecting all the victims. He said that he handled around £16,000 compensation claims related to PPI policies that were sold along with a store-card. His firm has charged 29% of the fee, which includes VAT on any of the compensation awarded to customers.

The founder of a consumer group branded that FCA’s PPI deadline is a mistake. He said that over half of all the cases in the past 12 months where a PPI claim was refused by a bank, but then it was taken to an independent ombudsman, where the denial is overturned.

He further said that until customers can trust banks to deal with their complaints justly in the first place, the move to protect their balance sheets must not happen. This is putting the protection of financial industries ahead of customers. Also, many banks are making it outrageously difficult for individuals to check if they were even mis-sold PPI.

Another expert of a consumer group said that it has been clear for many years that banks must work harder to resolve the PPI claims justly. The present process has been completely inadequate and has driven too many customers to seek assistance of Claims Management Companies.

However, the chief executive of FCA defended its verdict saying, “Putting in place a deadline as well as campaign will only mean that individuals who had been potentially mis-sold PPI would be forcedto take action now instead of putting it off. It is believed that 2 years is a reasonable time period for customers to come to a decision whether they would like to make a complaint or no.”

FCA said that they would be launching a 2 year publicity campaign in the month of August in order to raise the awareness amongst the consumers. The £42m bill will also be paid by the banks involved in the scandal.

As per the watchdog, consumers now have new grounds to make a complaint relating to PPI if they weren’t informed about the commission being paid when they were sold the PPI policy, under the “Plevin Rule”. Customers would receive compensation for any commission that is paid above 50% of the actual PPI value. All the banks should also write to consumers whose claims have been refused and who had paid the commission.

On an average £2,000 is the PPI payout, though some customers got a lot more. The policy was sold along with mortgages, loans and other credit deals, but in most of the cases, clauses mentioned in the insurance meant that people were not able to make a claim and many were not even aware that PPI was added.

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Finance companies have triggered around three million PPI complaints in the second half of the last year, which is equivalent to 16,700 gripes each day. Also, figures from the Financial Conduct Authority-the city watchdog- showed that Payment Protection Insurance (PPI) has generated one of the largest numbers of complaints, which are nearly around 900,000.

Banks and other financial institutions have paid out roughly around £1.3billion as compensation to individuals who were mis-sold PPI polices.

Likewise, many consumers even clawed back another £300million for other unlawful activities by the financial firms. Insurance, exclusive of Payment Protection Insurance, was the second on the list of most criticised about product between the month of July and December, with around 665,000 cases.This was further followed by 514,000 cases regarding the current accounts.

All these figures are the first, since the Financial Conduct Authority brought in the new rules and regulations, which required every firm to register a gripe on the day it was actually made. This further led to plenty of complaints, which leaped from just over 2 million in the initial six months of the previous year.

As per the FCA’s report, Barclays had attracted most of the complaints, which was approximately up to 438,200. Lloyds bank who attracted about 300,000 complaints came in at second place.
Christopher Woolard, the Executive Director of strategy and competition of the Financial Conduct Authority said that what every customer wants is a simple way to makea complaint, which doesn’t leave them with empty pockets.

However, James Daley of Fairer Finance said that all these figures only show that almost a decade after the financial crisis took place, nothing as such has changed.
The volume of complaints has been astronomical and as per their research, it has been found that consumer contentment with the banks has remained stagnant over the last few years. In fact, they have deteriorated to the point wherein they have started expecting patchy services from the banks.

 

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Why Is the PPI Scandal Continuing

 

It is near impossible not to know about the Payment Protection Insurance (PPI) scandal. For those who do not know what PPI policy is for here is a brief introduction.

PPI policies are sold alongside loans, mortgages and credit cards since the 1990s. These policies were meant to provide cover for people who failed to repay their debts or borrowings because of any one of the following reasons:

  • Illness
  • Unemployment
  • Death

The banks or the lenders did not profit much as the PPI policy did not bring in any cash from the consumers. Therefore, they started selling the policy to anyone and everyone without checking if in future their customers are eligible of making a claim or not. PPI policies were mis-sold to people in various ways for example, the banks or the lenders forced their customers to buy it (without explaining them much about the policy) or by selling their customers the policy without their consent.

Customers who did not know if they had any such policy in their name, did not make a claim. This made huge profits for the banks and the lenders. In the beginning of the 2005, the Financial Service Authority (FCA) made it a priority to draw a line in the sand to the whole PPI mis-selling scandal. The FCA then started imposing fines for mis-selling of PPI polices in 2006. The authorities even banned one of the worst types of PPI policy that was being sold at the time – single premium which was sold to mortgage buyers and then added to their total loan amount at the start.

As the issues of mis-selling of PPI policy started to arise, an army of consumers attempted to make a claim for compensation. The successful claims were based on the following factors

  • Proof that the claimant was/is unemployed.
  • When the policy was bought
  • Whether the banks provided correct paperwork or not.

Most banks rejected almost all the compensation claims forcing the customers to take their case to the industry ombudsman.

Till today, PPI is by far the biggest source of complaints to the FCA and more than 70%  of claims being brought forward are being upheld in favour of the claimants. It is a fact that PPI is such an outlier when it comes to the proportion of cases that are being upheld. However, the banks are still failing to deal with the issue properly, years after it was first brought to light.

Finally, the FCA has announced a deadline on making a reclaim on the mis-sold PPI policies. According to the FCA, imposing the deadline should put the PPI issue to an end. It is now a relief that the Financial Conduct Authority (FCA) has published final rules and guidance on the future conduct of the claims.

FCA has a hope that the advertising campaign for the announced deadline will encourage people to come forward with their PPI claims and not delay it any further. The mis-sold PPI refund claim should be made before the final deadline i.e. August 2019. Mainly, it was important to bring this issue to an orderly close by imposing a two-year deadline on consumers within which they should make a claim or risk losing out on compensation that is rightfully owed to them.

 

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Yes, it is possible to make another claim for PPI refund after already being compensated for an existing claim. There have been notable instances in the past, where despite being compensated for mis-sold PPI, claimants have not received the full compensation amount.

Recently an unusual incident came to light wherein the refund was paid to a third party. The claimant then had to file for a re-claim to the lender in order to acquire a refund. The refund payment to the third party was not mentioned in the policy. With a lack of information in ‘black and white’ no evidence was found linking the payment from the lender to the third party. On the other hand, the victim is entitled to receive the rightful compensation amount owed to them.

This incident brought into light several such other cases,whichprovoked many more victims to come forward with their claims. The victims argued that the disbursement of an incorrect compensation amount was in violation of the Consumer Credit act and the rights mentioned in it.

This act cites that an individual can ask for validity about the policy under the Consumer Credit Act. The most important question in this whole incident is whether the refund was really paid to the third party. This is the main reason why you might require professional assistance,so that you are not just successful with your claim, but you also receive the rightful compensation owed to you.

Ifyou are entitled to receive a refund, the firm can look into the intricacies of the matter and guide you in the right direction. It is therefore, recommended to consult experienced professionals who have considerable expertise in all matters related to PPI reclaims.

There is a possibility that you may receive only a part of your compensation due to the mis-interpretation. Most probably one is likely to acquire compensation based on the payments made during a particular tenure. The tenure can be possibly last till the policy was permanently terminated or when it naturally came to an end.

Claim For PPI Refund Again

There are several instances where the victims obtain their compensation in instalments. This can be tiring not to mention tedious, as you have to keep a tab of each payment being paid. The main reason for this is that you no longer trust the lender.

If your lender has mis-placed important paperwork, which specifies the actual payments they intended to make as part of the compensation package, you will be compensated based on the premium payments record in their database. This means that those records will determine your refund amount. Perhaps, this amount may include additional interest commission that you are entitled to receive.

From a legal standpoint there is nothing stopping you from making a claim for the second time as long as you were originally mis-sold the PPI policy.

Besides, there is a fixed date schedule you need to follow in order to reopen your claim. Therefore, make sure that you apply for claim well in advance before the deadline.

There have been instances of victims being under-compensated. In case you are aware about a deceased person owning a policy then you can claim on their behalf.  Also, if you had PPI on more than one loan, mortgage or credit card and have not been compensated for it, you are entitled to make claims for the other instances of mis-sold PPI.

 

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PPI REFUND CLAIM

 

 

If you have beenmis-sold a Payment Protection Insurance (PPI) policy on a loan, mortgage orcredit card, you can claim a refund. The average PPI refund amount is around £2,750.This could be an easy way to claima good amount of money which you can then use to pay off your debt. The most important thing to know before you go on to make a claim is- whether you are entitled to make the complaint for the mis-sold PPI policy or not. If you have the necessary documents that would be a great start, however, there are plenty of resources you can use to find out if you are due a claim, regardless of if you have documents to have.

People who have guaranteed incomes do not usually find it necessary to take out a PPI policy. This might suggest that, they were either forced to take the PPI policy or the PPI policy was sold to them without their consent. For you to claim the PPI refund by yourself or with the help of a Claim Management company, you need to be aware about whether or not you possess the required documents ofthe loan, mortgage or credit card taken.

If you do not have the documents, you can check with the banks from where the loan or credit card was taken to assess whether you weremis-sold PPI or not. However, because banks are only required to keep documents for up to six years, it may be difficult to confirm if the client was sold the policy and whether the documents could be acquired to make a claim. Most banks/lenders do maintain the details of their customers for a longer period.

You can opt for making a claim all by yourself, but in this situation, it is good if you consider seeking help from a claim management company. The process to make a claim for the mis-sold PPI is straightforward. But if you go to make a PPI refund claim all by yourself, here are the steps you need to follow:

  • Collect all the required paperwork related to the loan, mortgage or credit card/s.
  • If you cannot find the paperwork, ask your lender/bank to send you a copy of it.
  • If you discover that the deceased was mis-sold the PPI policy, write a letter to your lender asking for a refund. (attach the copies of your paperwork along with the letter)
  • If you do not get an acknowledgement within eight weeks or they turn down your claim, contact the Financial Ombudsman Service.
  • The ombudsman will look at your case, which can take a long time, but if it rules in your favour, they will contact you.

 

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Despite the ongoing scandal of PPI recently, a more serious issue came into light when it was found that victims have been under-compensated for the PPI policies that were mis-sold to them.

Studies have shown that PPI victims have been under compensated by approximately £1 billion. Initially, customers were offered PPI policies along with credit cards, insurance policies, etc. To be fair some financial institutions have compensated their customers fairly but others have not followed suit.

This issue came to light only when customers started realising that they were given a much smaller amount as part of their PPI settlement. Also, they were not kept in the loop while the final    calculations were being made. Thus, they had to bear the burden of additional charges and fees which they are not supposed to pay. This reduced the net amount that an individual victim would have received otherwise.

This would have continued to be overlooked if an experienced PPI service provider had not devoted their financial expertise. It is imperative for you to gain sufficient knowledge about the calculations that are carried out as part of your final compensation amount. Make sure that you are aware about the overall calculation procedure so that you acquire the actual amount that you are entitled to receive.

Many consumers were paid back compensation in the hundreds of pounds when the reality was that they were owed in the thousands.

Basically, keep in mind that the final amount included penalty charges on credit cards, total number of credit cards, net amount of paid charges and interest that they were bound to pay.

Another incident that opened the eyes of many victims was when the bank gave a victim PPI compensation worth £5,800 but this amount did not include additional charges and fees worth £600.  If these amounts were correctly included in the compensation amount, the claimant would possibly receive a final compensation totalling £13,000. Not factoring in these additional calculations when determining the final compensation amount has long been considered one of the biggest flaws in the entire reclaim process.

If you believe that you have been offered a lower amount, you should ask your bank to share their calculation details with you, so that you know how they arrived on the final figure. If the wrong amounts were used to make the calculations, then let your bank know about it so that they can put forward a revised offer letter.

Industry insider’s state that PPI claims refund has so far reached £ 22.4 billion, which easily makes PPI the United Kingdom’s largest mis-selling scam.

Therefore, while purchasing any policy from a financial institution make it a point to go through all the details and check whether it is one of the firms who heavily indulged in PPI mis-selling.

There are several CMC’s out there to provide you with accurate guidance so that you can reclaim the compensation you so rightfully deserve. These companies offer the right procedure so that you receive the amount that you are entitled to and with the correct approach.

As a complainant, you should have strong evidence with you that can prove all the payments you made were timely. If you have all the relevant documents, as a CMC we are ideally positioned to take your claim further and not just get you the compensation you deserve, but make sure that you receive the right amount of compensation that is owed to you.