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Is ‘summit’ good about to happen with PPI reclaims?

Richard Lloyd and Martin Lewis

Which? and MoneySavingExpert.com hosted a summit yesterday to kick-off our joint initiative to put consumer interest at the heart of PPI compensation. There’s work to be done but we’ve made good progress…

I don’t think there are many people who haven’t heard about payment protection insurance – or PPI as it is most commonly known.

No doubt you’ve seen an advert or received a text from a company promising to help you get ‘thousands of pounds back from mis-sold insurance’. Our recent research shows that 93% of people had either seen an advert or received a text about PPI.

No more ‘talking shop’

Although the issue has been around for years, we still feel that it is not ‘job done’ in terms of getting consumers the best deal. This is why we teamed up with MoneySavingExpert.com to campaign on an area of joint concern. We arranged a summit and launched a joint radio advert.

We kicked things off by gathering together representatives from all the major banks and credit card providers, regulators and the Financial Ombudsman Service. Now it’s not often you get this invitee list in a room together.

Our aim? To focus on the problems and look for solutions – we didn’t just want another talking shop. We wanted to demonstrate that you have the right and ability to complain yourself and you don’t need to pay a third party to do it for you.

The outcome? We highlighted how we want to help restore trust in the PPI claims process and got all parties to agree a set of actions. Our agreements included calling for a standardised complaints procedure, improving customer communication and providing tougher regulation of claims management companies (CMC).

Making consumers HaPPI

We think this is a job for everyone – banks and financial providers, government and consumer groups all have a role to play to make this happen.

We’ll also be meeting with CMC representatives. We need to work out how we can help encourage best practice from companies who base their business on managing claims on your behalf.

Have you ever been put off trying to reclaim PPI by your bank or provider convincing you there’s lots of paperwork involved? Have you turned to a claims handler as a result? We’re hoping, slowly but surely, to empower more consumers to take this on themselves, but as ever, we love to hear your views to help shape our work.

Kat77 says:
24 April 2012

I have claimed all my PPI payments for my credit cards and loans and have received all my money back except for Barclay Card.

I rang them yesterday chasing my claim and they said that they have closed the claim as they believe it was not miss sold back in 2003 and that they have sent out a 2 page letter to me with the reasons.

Have anybody else had this problem with Barclays and is it worth me complaining now with the FOS.


If which can lead for big switch,why they can not lead for PPI claim. People have more trust in which then claim Management companies.
This is not easy task and it is not simple and easy for customers .
Lead the people same as big switch !

If the banks know they’ve been behaving badly and have put aside all that money surely the simple solution is to get them to just send out the money. That would stop claims companies in their tracks. I blame the judge who made the ruling and didn’t add that.

I get two or three calls a day from claims management companies inviting me to engage them to reclaim mis-sold PPI premiums. I assume they have now realised the game will soon be up and they will no longer be able to con people into thinking they have to employ an agent to do something that the banks will process for nothing. The strange thing is that I have never taken out PPI as I have never had a repayment situation to protect, and yet these callers seem to know who I am and have my landline number. Hold on . . . the phone’s ringing. [lLater] As I thought, it was another claims management company. How many of them are there? And are they subject to any financial regulation themselves?

jjesther says:
25 April 2012

one company made a claim for me on my ppi last year there took a fee of 25% will i get a refund back? an also can imake a claim on my mortage.

Nick Shaw says:
27 April 2012

Hello everyone, I hope the following story strikes a chord with other borrowers and sheds some light on how LLoyds TSB operates. Just to let you know that I have followed the clear procedures recommended to me by my bank, Lloyds TSB to complain to them, about them, believing I have been mis-sold PPI policies not so long ago (less than 10 years ago) on two graduate loans, which I had taken out in 2002 and 2004 (I added more to original) totaling over £10,000. I had got myself into debt in my 30’s having been living independently (200 miles from home) and having been made redundant by my employer due to closure, taken myself off and successively completed a full time post-graduate studies in Youth & Community Studies at SMC Lancaster back in 2002. I filled in the standard generic form that I easily downloaded online from Lloyds TSB internet banking service as advised by bank, no problem. I also followed up this procedure online with Which using a customized letter of complaint, assisted by ‘Which’ online, as advised by Which in their recent articles helping me understand issue by focusing on PPI. So far, Lloyds TSB have acted appropriately and been helpful by responding to me promptly by letter and pledging to look into my complaint within a reasonable time period. They are aware from my form and the Which letter which loans I am talking about, and hopefully realize, as I have stated in the form also, that I feel mis-sold to as did not actually want the PPI policy in the first place having just started a new job. Basically the bank manager would not lend to me unless I agreed to sign the policy. I formally complained at the time shortly after agreeing to the PPI, saying that that I did not need policy. Anyway, ultimately I completely paid off the loan within 5 years, but the total cost of borrowing essentially landed me in even more debt than was really necessary due to the expensive premium on top of the interest on graduate loan. I had been trying to better myself by undergoing and achieving a professional qualification as a mature student, but paying for books, commuting and course fees proved more expensive as a result of this unecessary addition of PPI. Anyway, so far Lloyds to their credit has responded most helpfully by letter, so I will keep you informed of the outcome, regards Nick Shaw.

Nick Shaw says:
27 April 2012

Hello again, just to add to my previous contribution, the PPI policy from Lloyds TSB was not explained to me properly at the time of having to agree to it in order to borrow, nor was I shown any evidence of the key benefits except for being told it would be helpful should I be out of work. But worse of all, I had no idea of the cost implications of the premium added to my interest rate, so loan proved mightily expensive to add to my existing student debts. regards Nick

Sian says:
2 May 2012

I’ve done a lot of reclaiming PPI for friends and relatives and been very successful for them. I have three problem companies – advice appreciated.
1. Creation (JJB Storecard) old card – FOS can’t help
2. Freedom FInance – no-one will claim responsibility (IGroup were involved which is now owned by GE Money). Apparently Freedom Finance Ltd was “acting as an outsourced processor on behalf of broker Bespoke Finance Ltd” – based in Gibraltar!!! Freedom still going I believe? Lousy way to do business.
3. Anglian windows (First Plus) – FOS have taken up with Lloyds of London the underwriter.

Christine says:
16 January 2013

Hi there, I too am having extensive difficulty with Creation Finance over a store card I took out with them in 2001. The Ombudsman, whom I finally sent forms to, have asked me to find out from them who their Underwriter was at the time, but so far, Creation have completely ignored my enquiries and it seems impossible to telephone anything but a machine geared up to their credit card customers. I have actually been trying to get some information out of them since June 2012!

Sian says:
16 January 2013

Hi Christine, finaly got reduced settlement. Email eifat.rehman[at]laseruk.com and copy FSA & OFT. I have complained extensively about Creation to Martin Wheatley at FSA who will run FCA and above organisations also Andrew Tyrie MP who runs the Finance Select Committee.
Gordon Rennison is CEO of LaserUK the parent company. His email is: gordon.rennison[at]laseruk.com – copy all of them. If you can get confirmation of receipt for all your emails. We had help from CAB too because of financial hardship. Good luck!

Alison says:
3 May 2012

I’ve contacted Alliance & Leicester (MBNA) twice now regarding obtaining a copy of my credit agreement and enclosed the £1 cheque. They cashed the cheque back in June 2011 but wrote to me to say they could not provide me with the information at that time. I’ve re-written to them in April 2012 and again have heard nothing. What do I do now?

Alison says:
3 May 2012

To add to that, I’ve just received another letter from MBNA saying they are “currently unable to comply with my request”. They then go on to state that “For so long as this continues, we will not issue court proceedings against you to recover any amount owed either now or in the future.” But then go on to explain that if I’m late in paying or miss a payment they are entitled to report me to the Credit Reference Agencies and cite two recent High Court Decisions.
Do I now complain to the Financial Ombudsman? How?

I must get a call a day from PPI Claims Management Companies. The one today INSISTED that ALL banks and building societies automatically included PPI and hid it from the consumer, which I think is over- egging it somewhat.

Today’s charmer told me I would be stupid if I didn’t use them.

I just out the phone down.

yvonne says:
10 August 2012

I made a complaint about ppi based on these two reasons; i was never told or explained to about ppi as the adviser was too busy trying to sell me a loan, and i was never informed about ppi, it was added without my knowledge. llodys tsb are refusing to pay me back my ppi based on these two reasons;
policy features and limitations- were the policy benefits and exclusions explained to you clearly. the documentation that you were provided with both at the point of sale and after purchasing your policy, such as the summary of the policy and policy booklet, fully explained the benefits and limitations of this policy. I am also of the opinion that where it was practical the features of the policy were discussed at the point of sale.

Having considered all the available evidence including the sale process and documentation, i have come to the conclusion that the feature of the policy were adequately presented to you.

Consent to cover- relating to complaint 2

The consumer credit agreement shows that we required additional consent in the form of a signature to confirm you wanted a ppi policy to be added to your loan. I am persuaded that this required a verbal explanation ensuring that you were made aware of what you were purchasing.

it can therefore be concluded that you did knowingly consent to the addition of a ppi policy to your loan. in light of my findings, i feel that our adviser acted fairly and reasonably throughout the sale. i believe that the information provided at the time of sale was fair presentation of the features of the policy and explained the policy exclusions and the total cost of the insurance. i am also of the opinion that it was clear, fair and not misleading therefore allowing you to make a fully informed choice. my review has not highlighted any failings with the sale that would lead me to believe your decision to purchase the ppi policy would have changed.

llody tsb as given me 28 days to responsed to the letter i only have two weeks know and they said that i can not contact FOS until 6 months can anyone help me as i don,t what to say in the letter

Elaine says:
21 September 2012

Hi I have received the same letter actually word for word this must be the stranded letter for refuel, I am in the same predicament what do you say or how to reply

teresa says:
5 December 2012

Hi like wise i have the same letter too …any ideas very welcome