Lloyds to seize back bonuses from 10 senior bankers
From the Guardian http://www.guardian.co.uk/business/2012/feb/20/lloyds-seize-bonuses-senior-bankers
Lloyds Banking Group is to announce that it intends to “claw back” bonuses from as many as 10 senior bankers because of the £3.2bn losses that the bailed-out bank suffered after the payouts were awarded a year ago.
Between 40% and 50% of the bonus pot is thought to be at risk. Details were still being finalised on Sunday night and the figure could drop as low as 25% – which may not satisfy some critics who will question why any bonuses should be paid out at all after the bank took the losses to cover the misselling of payment protection insurance (PPI).
Among those facing the consequences of the adjustment of the bonus pot caused by the PPI scandal are the former chief executive Eric Daniels and his closest lieutenants, some of whom have left the bank since his departure a year ago.
PPI refunds promise to deliver stimulus
This makes interesting reading from the Financial Times and suggest that PPI refunds will help the UK economy over the next few years.
Britain’s economy is about to get a dose of fiscal stimulus equivalent to a tax cut of as much as £10bn over the next few years, economists say.
The unplanned stimulus arises from refunds of payment protection insurance, which have risen sharply each month since August.
Then, banks and brokers that sold PPI to an estimated 16.1m people agreed to abandon legal efforts to overturn an order for restitution.
PPI customers paid premiums totalling £17bn between 2005 and 2010, according to the Financial Services Authority.
For th full article visit the FT web site or visit http://www.ft.com/cms/s/0/ab7e42ee-5288-11e1-ae2c-00144feabdc0.html#axzz1m9raeePK
PPI Claims in 2012
UK Banks are bracing themselves for another tough year as millions more are set aside to pay for missold PPI policies. Since stopping the legal court battle against the misselling of Personal Protection Insurance (PPI) customers have been claiming back millions from UK banks and institutions. It’s been estimated that £9billion worth of payment protection was paid during that period.
In the first 6 months of 2011 nearly £500,000 was claimed alone. Customers were sold PPI policies to help protect them if they defaulted on the loan, mortgage, or credit card payments, should they be made redundant or become sick. The insurance was found to be sold to many people who would never be able to actually make a claims.
For many of the customers, the scheme didn’t work, and making a claim was almost impossible. Martin Lewis of Money Saving Expert said at the time the appeal was lost: “As much as £9billion that was wrongly taken from consumers could now be paid back – an economic boost as money from banks’ coffers will move into the pockets of real people.”
With potential billions still unclaimed 2012 looks set to another year where people claim back their PPI.
If you have paid PPI on a credit card or loan to a bank then take our quick test to see if you are due compensation.
Which Banks Can I Claim PPI Back From ?
Nearly all Banks and High Street Banks have been involved in the mis-selling of Payment Protection Insurance – PPI Policies – including Barclays, Natwest, Royal Bank of Scotland, Lloyds TSB, Halifax and Santander. The list below has information pages and contact forms if you believe that you have been mis-sold a Payment Protection Insurance (PPI) policy.
Barclays Bank PPI Claim Back
Natwest Bank PPI Claim Back
Royal Bank of Scotland Bank PPI Claim Back
Lloyds TSB Bank PPI Claim Back
Halifax Bank PPI Claim Back
Santander Bank PPI Claim Back
If you have any questions please call us on 01522 300456 or use our contact form.
Lloyds TSB tops most PPI complaints list
Once again, Lloyds Banking Group has topped the complaints table, attracting 22,242 complaints to the ombudsman in just six months. The Lloyds Banking Group attracted almost twice as many complaints as the next highest company, Barclays.
Figures published today show that the banking group, which includes the Lloyds TSB, Halifax, Bank of Scotland and Black Horse brands, pulled in a total of 22,242 complaints in the first half of 2010, compared with 20,190 in the second half of last year.
Lloyds TSB Bank attracted nearly twice as many complaints as the next company in the tables. Barclays Bank came second in the table for the second six months running, with 7,991 complaints, of which 4,797 related to banking and credit and 2,205 to general insurance.
The financial ombudsman upheld 61% of the complaints against Barclays.
The ombudsman service received a total of 84,212 new complaints between 1 January and 30 June, a small increase on the 82,136 cases received in the second half of 2009, and a large proportion of which related to the sale of payment protection insurance. The majority of these complaints, which were included in the figures for general insurance, were upheld, including 96% of general insurance complaints against Black Horse, 95% against Barclays, 93% against Welcome Financial Services and 86% of those against Lloyds TSB
HSBC FAIL ON COMPLAINT HANDLING
HSBC Fail On Complaint Handling
One of the UK’s biggest high street banks has missed a crucial deadline to contact complainants of the £7bn payment protection insurance (PPI) mis-selling scandal.
HSBC who have been behind the Black ball throughout the last 2 years processing claims have failed to respond to the backlog of complaints made by customers who believe they were mis-sold PPI by August. HSBC state that they will be informing the last of the complainants within the next few days. It is understood that it will take longer to sort out ther mess.
HSBC, which has a PPI liability of £270m, compared with £3.2bn from Lloyds TSB said it expected to inform customers of the amounts they would be paid within a matter of days.
It is understood that the the majority of banks who were given 16 weeks to process claims have achieved their target. It will probably mean that the FSA will impose regulatory fines because of this.
Just another case of a Bank not taking the PPI scandal seriously.
FSA publishes amount of redress paid to PPI complainants in first half of 2011
The Financial Services Authority (FSA) today published details of the amount of redress paid by firms during the first six months of 2011 to consumers who have complained about the way they were sold payment protection insurance (PPI).
The data shows that 16 firms, representing 92 per cent* of PPI complaints received in the first half of 2011, have paid a total of £215 million in redress between January and June 2011 inclusive. In May and June alone, following the dismissal of the industry’s legal challenge to the FSA and the Financial Ombudsman Service (the Ombudsman), £102 million was paid out.
Credit Card Payment Protection
Thousands of people have taken out Payment Protection Insurance (PPI) on their credit cards because they thought their application was more likely to be accepted if they did.
Approximately 9.8 million people have credit cards with PPI attached, according to a survey. Of these about 13 per cent (or 1.3 million) thought that buying the PPI was a condition of the sale or that it would boost their chances of receiving the credit card.
PPI is sold alongside credit cards, loans, finance agreements and mortgages to cover repayments if people are off work because of illness or unemployment.
Obviously, what the banks didn’t say was that most of the time it didn’t cover you. Surprise Surprise
Self-employed urged to reclaim PPI premiums
Self-employed urged to reclaim PPI premiums
Banks have had to pay out to thousands of customers, including many self-employed people, to whom it mis-sold payment protection insurance (PPI).
Policies, which were sold to the Self Employed, were often sold even though the Banks knew that the customer could not claim on the policy if sick or ill.
The High Street banks which all want the customers trust expect that this debacle will go away. Trust is not selling customers £2000 of Insurance knowing that they could not claim on the policy.
Paying back the customers money should not be enough; this is Fraud and no better or worse then the MP’S expenses claims.
Lloyds feel the pinch with Massive Payouts for PPI
Lloyds banking group announced a £3.3 billion loss today. This was mainly due to the expected large payouts to customers who have been mis sold payment protection insurance. Lloyds as well as other high street banks are reporting mind boggling losses because of the fiasco. The ongoing cost of this is likely to be spread over the next 3 years as over 20 million policy’s have been sold within the United Kingdom.
It’s a big win for these customers as the FSA had decided to act and stop these banks from ripping the customer off.