Has your bank mis-sold you a financial product such as a payment protection insurance (PPI) policy or over charged you for exceeding your overdraft? If you need extra money to repay your debts fast, then this article is a must see.
Debt management is a broad term that encompasses saving money, cutting costs and ultimately clearing debt – and nothing clears debt faster than a windfall.
You may have heard yourself say “If only I could get some extra money from somewhere, I could repay my debts”. The good news is if you have been overcharged by your bank or credit card company, or mis-sold a payment protection insurance policy (PPI) you are entitled to compensation.
Banks are misleading their customers over compensation claims and depriving the consumer of millions of pounds, according to a report published by the Financial Ombudsman Service (FOS).
The regulator body not only attacked banks for misadvising customers over their entitlement to compensation on mis-sold products, but also hit out at the Financial Services Authority for failing to take action.
The damning report, published last week, calls for a revision of the law in order to favour and protect the consumer. Currently, customers are obligated to complain to their bank in the first instance before taking the issue further with the FOS. The Ombudsman argues this allows banks to intimidate, confuse and mislead customers over their legal rights and entitlements.
In the United States where customers do not have to take their complaint to their bank, compensation claims were 60% in favour of the consumer compared to 30%-40% in the United Kingdom.
Adopting the US style complaints procedure would help redress the balance in favour of the consumer and prevent customers from being fobbed off by their bank, say the
FOS.
The House of Lords economic affairs committee meet this week where they are expected to suggest the FSA focuses “more directly” on consumers.
Debt Management Company
Debts.org has been vocally critical of banking practice that undermines justified customer complaints, especially in regard to products such as payment protection insurance (PPI). Mis-selling of financial products and overcharging has cast a shadow over banks and credit card companies now for years, which is why Debts.org is helping consumers win thousands in compensation for mis-sold PPI, credit card fees, bank charges and mortgage mortgage exit fees.
The Ombudsman say they have investigated 40% more complaints than average for 12 months to the end of March, with cases hitting a record 127,471.
If you would like to get out of debt by lowering monthly loan repayments, find out how a debt management plan can help you. Alternatively you can call our free advice line on 0800 520 0923.
Ideally suited to debts of less than £5k with some disposable income available. Learn how to consolidate your situation and reduce your monthly payments by learning to negotiate with your creditors directly.
Designed for debts of up to £15k where creditor pressure is becoming too much to handle and you may have failed to agree to an overall acceptable monthly payment with your creditors directly.
Minimum total Debt of £15k to qualify for an IVA. Typically you can write off up to 75% of your debts and repay the balance over 5 years. This is a formal arrangement and failure to maintain it can have serious implications
If you have been refused an IVA or simply do not have any disposable income to come to an arrangement with your creditors Bankruptcy may well be your best option but professional help and advice is strongly recommended before entering into any formal arrangements.