PPI Scandal Costs Banks Thrice as Much as Olympic Games

The payment protection insurance scandal has been devastating to the United Kingdom’s economy. The country’s banks finally have to pay for the cost of it. A new report from The Guardian revealed that the crisis has cost the banks twice as much as the Olympic Games.

Which? Finds PPI Costs Surging for Banks

A recent report from Which?, one of the country’s consumer watchdogs, found that the PPI scandal is costing the banks more money every year. The report showed that the banks have been forced to pay customers over £25 billion. The Olympic Games in 2012 cost the country less than £9 billion.

The cost of the PPI scandal is expected to keep growing even more in the near future. Both Barclays and Lloyds have announced that they have needed to set aside even more money to pay customer claims. Customers have been filing more than 10,000 claims against the High Street banks every week. Some experts believe that at least two thirds of consumers who have been mis-sold PPI still haven’t filed a claim. More claims will probably surface when they realize it.

Banks Feeling Pain from New Claims

The PPI crisis has seriously eroded the profits of many banks. Some banks were guiltier than others and are facing larger bills. Lloyds, one of the biggest offenders in the PPI mis-selling scandal, was forced to pay about £200 million a month between September 30 and December 31 to settle many of these claims. A number of customers filed claims with a PPI claims company to help get their money back.

The banks have also been forced to pay fines for failing to resolve mis sold PPI claims in a timely manner. Lloyds has already paid over £4 million for being delinquent on many of the claims that were filed last year. The Financial Conduct Authority is creating stricter policies that the banks will need to abide by. Banks that fail to pay even larger penalties in the coming months.

Banks Shown Little Sympathy

Consumers throughout the country are furious at the banks for the financial scandals that have erupted in recent years. The PPI and LIBOR rate fixing problems have caused many to lose faith in the financial industry. A recent survey found that many people won’t trust the banks again for at least a decade.

These people have shown little sympathy for the losses the banks have incurred due to the PPI crisis. They are more concerned with getting their money back from them. Many people are protesting to the Financial Ombudsman Service insisting that the banks need to pay their claims in a timelier manner.

Is it Worth Making a PPI Claim?

The answer to above is quite simple: yes, it most certainly is! The payment protection insurance (PPI) scandal has so far seen hundreds of thousands of people reimbursed the cost of their PPI policies thanks to them having been mis sold, and with an average repayment of £2750 it is certainly worth the effort. Furthermore, there is very little effort involved as, thanks to a High Court ruling, the banks have had to set aside many billions of pounds to repay the cost of the policies, and it has never been easier to claim.

How to Estimate Your Repayment

It is worth bearing in mind that, while so far £10billion has been reimbursed it is estimated the total cost could be in excess of £25billion; this clearly indicates that there may be more claims to come than have already been seen. Anyone can get an idea of the amount they may be owed by using an online PPI calculator where you can make use of resources that, quickly and easily, give a good estimate of the amount of an individual repayment amount.

Some Numbers that May Amaze You

The Financial Ombudsman Service (FOS) issued some statistics regarding PPI in September, 2013, that make interesting reading: for example, the FOS itself has 1500 dedicated staff dealing with around 2000 new complaints concerning PPI every day, and the number of claims made in the first half of this year (2013) amounted to an increase of 26% over the last quarter of 2012. No doubt this is down in no small part to the increased public awareness of the scandal, but the figures are still quite astonishing to behold. Anyone yet to claim is strongly advised to make the first move as soon as is possible.

Further information is available on the website: HaveIGotPPI.org.uk

Will Drafting: Trust Funds And Avoiding Family Disputes

Recent years have seen fewer people making wills. Recent years have also seen a noticeable increase in cases involving people who have died with invalid wills, or with no will.

In both cases, the result is property, possessions and money that are tied up in litigation often for years. A further result is pain and further grief for the families concerned, and family and legal disputes. If only to avoid such pain, it is important to make a will.

Wills, probate and related legal matters fall under equity, well known in the legal world for being a complicated area of law. Wills and related documents need to follow the right formats, and to have the correct provisions under law. The rules of equity in some cases even dictate the exact words that need to be used.

Equity has its origins in Norman and Mediaeval England. As such, over the centuries it has evolved into a very complex, ponderous, and above all, formal area of law. The formalities, formula and conventions of equity must be strictly kept to to ensure that your will is valid. Despite the complexities, the rules of equity are there to protect you: those archaic rules ensure that your property is classed on to whoever you decide should inherit, and in what form.

With that in mind, when considering a will and treatment, it is vital to consult a lawyer. Even researching the principles of equity and the basics of will writing, and devising your own will are no substitute for getting an expert to write such an important document for you. A layman can easily make so many mistakes, or be unaware of so many legal matters, that their will will in most cases be declared invalid, or result in upset as provisions cannot be honoured. A lawyer will be able to ensure that your will is drafted in line with current legislation and rules, allows all bequests to be honoured, and above all remains valid.

When considering who to leave what property to, a lawyer will be able to advised you that some things you may want to do might not be possible at law, for whatever reason. However, in most cases, your lawyer will be able to come up with an alternative solution or suggestion.

As has been mentioned, equity has a ritual and language seemingly all of its own. All of which, however, makes perfect sense. One example is that the vast majority of wills will start with the phrase ‘I hereby revoke all other wills and testaments.’ Although cumbersome, what that means is that that will is the latest and most current expression of your plans for your possessions and property. That in itself is a fact worth remembering; that will will remain in place, and legally enforcible, until you draft and sign a new will.

Further, the wording used is quite important, with some words having a slightly different meaning to the equity lawyer and will drafter. Take, for example, a ‘gift.’ To the layman, that is often another term for a present. To the equity lawyer, a gift is property that passes (or will pass) to another without anything expected in return, and often with all the rights of ownership. Much property and possessions can be passed to another in a will, without the rights of ownership, or with conditions attached. It is therefore important to choose the right word – and the right manner in which to bequeath your property.

Once again, that merely serves to highlight the importance of having your will written by a professional expert. Although expensive, although time consuming in hours spent in consultations – it is a small price for peace of mind, for yourself and for your family.

Indeed, whilst consulting with a lawyer, they will be able to advised you as to several things you might be able to do with your possessions and property, for the benefit of your family – often things you were unaware of. A good example is a trust fund. Trust funds are popularly perceived as vast sums of money inherited by the rich. That is, in reality, not the case. Under equity, a trust can be made of most property, and can be structured in a variety of different ways. For example, the family home, in some cases, can be made into a trust under equity,and passed on as such. Money or possessions can be willed to various people in complete anonymity, if you so desire, or if it is necessary.

Those examples just go to show the mysterious ways of equity, and the various ways money and property can be passed on in your will. Without a will though – it is hard for your family and friends to inherit anything as you desire. That is why it is so important to consider such matters, and to consult a lawyer regarding making a will. Not only will that bring peace of mid to you – but it will make things much easier, and less painful for your family later on.