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June 29, 2017 
Daniel Lee Everybody has heard about the PPI mis-selling scandal haven’t they?
If you haven’t, where have you been?
Whilst the vast majority of us have heard of PPI, how many actually know what it is, how it was mis-sold, and the reasons it was mis-sold?
If you’d like to brush up on the whole PPI story, and get the above questions answered, we’ve gone into greater detail on our PPI page, which you can reach here.
In this post, we’re going to take a look at the PPI fines that have been handed out, who to, and what for.
Firstly, we need to establish that the fines handed out are not included in the compensation payments that banks and lenders have paid out, and put aside.
With the main banks (Lloyds, Barclays, HSBC, RBS / Natwest), having set aside billions to compensate customers, and the bill rising consistently, we investigate whether the sector has been discouraged by the fines and compensation or whether the profits still outweigh the costs.
5th September 2006: The Financial Services Authority (FSA) fined Regency Mortgage Corporation £56,000 for failures in it’s mortgage PPI sales techniques.
26th October 2006: A fine of £455,000 is handed to loans.co.uk, a broker for telephone PPI sales failures, affecting over 44,000 customers.
20th December 2006: The FSA fined home shopping company, Redcats, £270,000 for PPI selling failures which could have affected up to 160,000 of it’s customers.
15th February 2007: Capital One were given a fine of £175,000 for failing to provide 50,000 customers important information following a PPI sale. The culture of selling PPI within Capital One could have affected up to 335,000 customers.
6th September 2007: Hadenglen Home Finance were issued with a £133,332 fine, and it’s Chief Executive, Richard Hayes, was fined £49,000, in the first instance that a fine had been handed to both the company, and it’s CEO. Quite astonishingly, Mr Hayes has still been allowed, and continues to be involved in various companies that sell mortgage and insurance products.
16th January 2008: The biggest fine at the time, £1,085,000 was given to HFC Bank, part of the HSBC group, for serious failings in it’s PPI sales.
12th May 2008: The FSA gave Land of Leather a £210,000 fine and also slapped it’s Cheif Executive, Paul Briant, with a £14,000 fine. Including Land of Leather, Mr Briant has been part of 28 companies that have been dissolved!
30th July 2008: Liverpool Victoria, now commonly known as LV=, were hit with a £840,000 fine for non-compliant PPI sales carried out over the telephone. Of the 90 calls listened to by the regulator, it found over 60% were not compliant. It also found that pressure tactics were used, and that the cost and product explanation were not carried out satisfactorily.
21st August 2008: In one hit, the FSA fined five car dealerships that exposed 2,175 customers to risk of purchasing unsuitable PPI policies. The dealerships were GK Group Limited, George White Motors Ltd, Ringway Garages (Leeds) Limited, Ringways Garages (Doncaster) Limited and Park’s of Hamilton (Holdings) Limited. Together they received a fine of over£175,000.
7th October 2008: A £7,000,000 fine, the biggest handed out at the time, was given to Alliance & Leicester, for serious failings in it’s telephone PPI sales which affected up to 210,000 customers.
10th December 2008: Egg Banking faced a fine of £721,000 due to it’s tactics when selling credit card PPI. Egg credit cards have since been taken over, and rebranded, by Barclaycard.
9th July 2010: David Head, a director of Essex based mortgage and insurance broker, FT Compliance Services Ltd, was issued with a £10,500 fine for failing to properly supervise insurance brokers. Mr Head is still involved in the finance industry as is currently a director of a financial advisory firm!
3rd May 2012: UK Car Group Limited were hit with a £91,000 fine for the failings of it’s representative, CC Automative Ltd, trading as Carcraft. Indeed, Carcraft’s own internal audits raised concerns, but it appears they were simply not acted upon.
12th December 2012: Three directors, Christopher Ollerenshaw, Thomas Reeh and Adrian Childs were each given fines of £100,000 (Ollerenshaw), £75,000 (Reeh) and £50,000 (Childs). Ollerenshaw and Reeh eventually paid £50,000 and £10,000 following claims of financial hardship, whilst Childs got away with not paying anything after declaring himself bankrupt previously.
4th January 2013: The Co-operative Bank are next up, with a £113,300 fine due to not handling PPI complaints fairly.
19th February 2013: Lloyds Banking Group, which includes Halifax, Bank of Scotland, Blackhorse, and Lloyds, were issued with a £4,315,000 fine for delaying PPI compensation payments to customers.
11th December 2013: It’s the Lloyds Banking Group again! This time, a £28,038,800 fine due to serious failings in the controls and incentive schemes given to staff for selling various products, including protection insurance, thus encouraging a culture of mis-selling.
16th April 2015: The biggest PPI fine at the time, £20,678,300 is handed to Clydesdale Bank who, along with it’s sister company, Yorkshire Bank, failed to handle complaints fairly, failed to take into account all evidence, manipulated documentation in an attempt to show no PPI had been added when in fact it had. Perhaps the most alarming of all, the bank was found to have provided false information to the Financial Ombudsman Service.
5th June 2015: The record PPI fine at almost £100m higher that the previous, the Lloyds Banking Group are hit with a £117,430,600 fine for mis-handling valid PPI complaints. The bank, which includes Lloyds, Halifax, Bank of Scotland and Blackhorse are ordered to reopen and uphold 1.2m complaints which was estimated to cost the group an extra £710m. Complaint handling staff were advised that the group had not mis-sold PPI and told to reject complaints unless specifically told otherwise!
1st June 2016: CT Capital are fined £2,360,900 for failing to handle thousands of complaints fairly. CT Capital had a policy of automatically rejecting claims against credit agreements taken out over six years prior to the claim, and rejected claims even when the recorded call from the sale of the policy was considered to be non-compliant.
In total to date, the regulators have dished out fines of £184,432,400 for PPI and PPI related offences.
You may be thinking that such fines would be a deterrent to the industry?
However, even if you add the almost £185 million to the £39 billion compensation that banks and lenders have set aside to compensate customers, it doesn’t come close to the profits that were generated during the mis-selling scandal.
With 34 MILLION policies sold since 2001, worth £50 BILLION, that’s almost a £11 BILLION profit for the banks after paying out compensation and fines.
It is important to remember that this figure doesn’t take into account policies sold prior to 2001, or the profits generate via interest charged on the PPI premiums.
Not a bad result for the banks really is it when you consider they’ve still walked away with billions in their pockets, hardly a deterrent for future scandals?
PPI was sold on all forms of credit, such as mortgages, loans, car finance, hire purchase agreements, credit cards and store cards.
Not sure whether you’ve been sold PPI?
Our fast and comprehensive checking systems that have been set up with almost all banks allows us to find out whether you’ve been one of the millions who have had PPI.
Not sure whether you qualify? Check here to see whether you may.
Want to know how much you may be owed? Why not try our PPI calculator.
Option #1: Fill in the ‘Start Your Claim’ form on this page. We’ll send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we provide, we’ll make a start on your PPI claim.
Option #2: Click the ‘Download Claim Pack’ button. Simply print out the form, complete it and send it back to us. Our address and email address can be found here.
Our experts are on hand to answer any questions you have via telephone, email or our live chat facility.
PPI fines
August 11, 2015 Daniel Lee With over £16.6 billion already paid out to UK consumers who’ve made a claim for the mis-selling of PPI, and the banks continuing to add to the compensation pot, we’ve done a little bit of number crunching.
As mentioned in a previous post, it’s looking increasingly likely the the PPI saga still has at least three years left to run.
In the majority of enquiries we now receive, we are speaking with customers who are not sure whether they’ve had PPI.
Thankfully, we are able to carry out the necessary checks via fast-track systems with almost all lenders, and in the majority of instances we are finding that the people who weren’t sure whether they have had PPI, have indeed had it.
We recently investigated just how many people have yet to come forward to make a PPI, and the number is staggering.
Our statistics show that up to 7 million people have yet to make a claim.
The major reason behind this number being so high is due to the tactics used by lenders whereby PPI was added to loans, mortgages, credit cards etc without the knowledge of the customer.
With the total compensation bill of the major banks (Lloyds Banking Group, RBS/ Natwest, HSBC, Barclays and Santander) standing at over £22 BILLION, with over £3 BILLION being added by other lenders, the bill currently stands at £25.5 BILLION.
As of August 2014, £16.6 BILLION of this had been paid out, leaving £8.9 BILLION sat waiting to be paid out.
However, with the banks continuing to add to their bills on a quarterly basis, it would appear the final bill will be around the £30 BILLION mark, thus leaving closer to £13.4 BILLION to be claimed.
The average payout is £3,332** with the biggest payout being over £100,000!
With a final bill of £30 BILLION, this means the average UK adult would get £600.
Whilst not everybody is entitled, it does give an indication as to the scale of the scandal.
If you have had a loan, mortgage, credit card or any other form of credit within the last 25 years there’s every chance you’ll have been paying for PPI.
We’ve made claiming easy, taking the stress out of you having to deal with the paperwork, the stress, and the tactics employed by the bank to try and wriggle out of paying.
So….how do you start your claim?
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your PPI claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!
Average UK adult
November 18, 2014 Daniel Lee Marks & Spencer Money, the finance arm of the luxury supoermarket brand, yesterday announced the appointment of a new finance director.
Helen Weir will join the business from the John Lewis Partnership early next year, on a salary of almost £600,000 per year on top of a £188,500 lump sum sweetener.
It’s reasonable to assume then that Mrs Weir’s track record must be highly impressive in order to command such a salary.
Prior to joining the John Lewis Partnership, Helen Weir spent eight years working at the Lloyds Banking Group, with four of them being in the role of finance director.
The Lloyds Banking Group consists of many banks under one umbrella, with the likes of Halifax, Bank of Scotland, Blackhorse and of course, Lloyds, being the major players within that.
It’s therefore clear that the position held by Mrs Weir within the group between 2004-2008 was of great importance.
Now we are not for one moment suggesting that Mrs Weir was solely at fault for what was happening within the Lloyds Banking Group prior to the financial crash in 2008.
However, there can be no hiding from the fact that her decisions as finance director would have played some role in the near collapse of the Lloyds Banking Group, which led to the UK taxpayer bailing the bank out.
Furthermore, we cannot pin the blame entirely on Mrs Weir, for the mis-selling of PPI.
However, once again she played a part in the Lloyds Banking Group being the biggest culprit of the mis-selling of the often useless policies.
Indeed, Mrs Weir was forced to apologise for her actions during the height of the PPI mis-selling saga, when banks were systematically adding PPI to mortgages, loans, credit card and all sorts of other credit agreements, often without the knowledge of the customer.
Is this the type of person we should be looking to employ within our financial services industry?
Is this track record of putting profit before customer, and risking the future of the banking industry, to be rewarded with a salary over 20 times the average UK salary?
M&S Money have played their role in the mis-selling of PPI, as have the majority of banks and lenders.
Now is the time that such institutions need to be seen to be turning a new leaf, not hiring people on obscene money with a track record of destruction and manipulation.
People’s trust in the banking sector is at an all time low, and the continuing merry-go-round of top executives moving from one bank to another, is hardly going to restore banks ever dwindling reputations.
We’ve all been affected by the actions of banking executives in one way or another following the financial crisis.
However, and perhaps more concerning, there are many millions of us who have still to make a claim when the greed of the banks led to PPI being added to credit agreements.
Unsure whether you’ve had PPI?
Can’t remember your account numbers?
Unsure whether you qualify? Have a look at our checklist here.
Want to know how much you could be owed? Click here for our PPI calculator.
Your Money Claim have been fighting, and winning, cases against banks for years.
We don’t need account numbers or paperwork as our fast-track systems set up with almost all lenders can check whether you’ve had PPI on any of your agreements.
So why not fill in the online form, or contact us via telephone, email or our live chat facility, and let us see whether you’re one of the estimated 7 million people who may still have a PPI claim.
M&S announce new finance director
August 11, 2015 Daniel Lee Let’s face it, the PPI scandal seems to have been around for years doesn’t it?
If you haven’t received a spam call or text about it, where have you been?!
Whilst we’re on that subject, never ever deal with a company who uses such tactics as spam calls or texts. We’ve done a blog regarding this.
Anyway, back to the subject, firstly we need to take a little look back before we can predict how long has PPI got left.
How long has PPI been around? The first mumblings that something was very very wrong with the sale of PPI goes back to 1998.
However, the story didn’t really start to build until the mid to late 2000s following a report by the Office of Fair Trading in 2006.
From that moment complaints started to rise, but not enough for the media to grab hold of.
Complaints really started to rocket from late 2009, hitting a peak in 2012, and the number of complaints regarding the toxic product is still in the millions.
Simple really, the profits gained from selling the products were huge, and the banks couldn’t resist.
Because of the size of profits on offer lenders set bonus targets for their sales staff to hit, which in turn led to systematic mis-selling on a staggering scale.
Greed won over morals, as it tends to do with banks.
According to statistics released by the Financial Conduct Authority, £16.6 BILLION had been paid out on compensation by August of this year.
With the compensation pot sitting at over £22 BILLION from the big banks (Lloyds, Halifax, Bank of Scotland, RBS, Natwest, HSBC, Santander and Barclays), topped up to over £25 BILLION when we add into the mix the amount also set aside by smaller lenders, this leaves £8.4 BILLION still to be paid out.
The banks are currently averaging payouts of £371 MILLION per month.
This means that it will take lenders almost two years to pay out the remaining amount that is in the pot.
However, this isn’t the whole story.
The financial industry, in our opinion, have massively underestimated how much this will eventually cost them.
Their figures depend on the estimated 7 million people who have yet to make a claim not coming forward.
They also rely upon consumers accepting when they receive a rejection from the bank. For more about how banks have saved themselves £17 BILLION by rejecting valid complaints, please read our article here.
Our figures suggest a bill closer to £42.5 BILLION.
We do realise that not everyone who is entitled to claim will do, and unfortunately customers still accept rejections from banks.
Nevertheless, a final bill will more than likely be around £30 BILLION.
Given £16.6 BILLION has been paid out, and banks are averaging £371 MILLION per month in payouts, it will realistically take a further 3 years for this scandal of epic proportions to finally be over.
Did you honestly think that was it? The next scandal is upon us, and very much like PPI, it’s currently under the radar, but not for long.
Do you pay a monthly fee for your bank account, or have you in the past?
With 1 in 5 of us currently paying for a Packaged Bank Account, in exchange for various ‘perks’, it’s becoming clear that banks have been at it again.
Not sure whether you’ve been sold PPI? Our fast and comprehensive checking systems that have been set up with almost all lenders, allows you to find out whether you’ve been one of the millions who have had PPI.
Not sure whether you qualify for PPI compensation? Check here to see whether you may.
Want to know how much you may be owed? Why not try our PPI calculator.
Do you pay a monthly fee fore your bank account? Check here to see whether you may qualify for compensation.
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your PPI claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!
How long has PPI got left?
November 14, 2014 Daniel Lee Yorkshire Bank is a commercial bank operating in England and Wales.
It is a division of Clydesdale Bank, which is a subsidiary of National Australia Bank.
Founded in 1859 by Colonel Edward Akroyd of Halifax the bank, headquartered in Leeds, originally operated on a non-profit making basis.
Unfortunately, this benevolent approach to banking did not last and indeed it was Yorkshire Bank‘s thirst for profits that led it to mis-sell PPI to their customers in the 1990’s and 2000’s.
Yorkshire Bank has been the subject of investigations by the Financial Services Authority (now the Financial Conduct Authority), for a host of reasons.
As reported in The Telegraph in 2012, Yorkshire Bank was accused of “unwarranted and misguided aggression” for demanding their customer repay a £5 million loan after he complained about being mis-sold an interest rate swap.
This second article in The Telegraph states that Yorkshire Bank are the main lenders to face claims over mis-selling fixed-rate loans.
As for PPI mis-selling, National Australia Bank (owners of Yorkshire Bank) have set aside over £1.2 billion at the time of writing this, with a whopping £420 million added within the last two months.
It appears that National Australia Bank have had enough of being linked to the two toxic banks that are Clydesdale and Yorskhire, recently announcing of their intention to dispose of them both.
If you have had a loan, mortgage or credit card with Yorkshire Bank within the last 25 years there’s every chance you’ll have been paying for PPI.
We’ve made claiming easy, taking the stress out of you having to deal with the paperwork, the stress, and the tactics employed by the bank to try and wriggle out of paying.
So….how do you start your claim?
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your Yorkshire Bank PPI claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!
Yorkshire Bank PPI claim
November 13, 2014 Daniel Lee Marks & Spencer was founded in 1884 in Leeds by Michael Marks and Thomas Spencer.
It’s widely known as a retailer of clothes, luxury food and home products, but in 1985 it began financial service operations.
Starting with the M&S Chargecard in 1985, Marks & Spencer began offering personal loans in 1989 and ISA accounts in 1999.
The trading name of Marks & Spencer Financial Services plc is M&S Bank.
More recently M&S Bank started providing customers with savings accounts, and have partnered with banking giant HSBC.
Customers of M&S Bank have been receiving compensation for another type of mis-sold insurance, as well as PPI!
An extra insurance policy provided by the insurance company CPP was sold by a variety of banks.
In the case of M&S Bank, this policy was known as ‘Card Safe’.
These extra policies were a complete waste of money as it added nothing to the insurance already provided by the banks.
As reported in The Telegraph newspaper, up to 7 million people have been paying for this useless insurance and the banks have been ordered to pay out around £1.3 billion in compensation.
Added to this is the huge amount of compensation owed to Marks & Spencer’s customers for the mis-selling of PPI.
This 2012 article reports that the PPI scandal is expected to cost Marks & Spencer’s banking arm £52 million!
If you have had a loan or credit card with Marks and Spencer within the last 25 years there’s every chance you’ll have been paying for PPI.
We’ve made claiming easy, taking the stress out of you having to deal with the paperwork, the stress, and the tactics employed by the bank to try and wriggle out of paying.
So….how do you start your claim?
#1: The first option for you is to fill in the form which can be seen on every page. By doing so, we will send you out a form in the post for you to complete. Once we’ve received the form back in the freepost envelope we send you with your form, we can make a start on your Marks and Spencer PPI claim.
#2: The second option for you is to download our form, which again can be found on every page by clicking the ‘download pack’ button. Simply print it out, complete it and send it back to us, our address can be found here. Once we receive is back we’ll let you know and make a start.
Our team of experts are on hand to answer any questions you have via telephone, email or our live chat facility.
So….why wait, let’s get started!
Marks and Spencer PPI claim
