Finance Miss-selling Guide

In the Financial Services Market the two scandals that have been unearthed / publicised to date are the miss-selling of pensions and the miss-selling of endowments.
The next scandal to hit the Financial Services Market will be the miss-selling and misadministration of mortgages and other loans.
Already these types of cases are documented publicly, having reached the Courts, and lenders’ conduct is high on the media agenda.
Main area of claim
Consumer Credit Agreements (Consumer Credit Act 1974)
Payment Protection Insurance

Aims: - To get compensation for clients who have been miss-sold loans governed by CCA agreements and loans with Payment Protection Insurance (Accident, Sickness, Unemployment (ASU) Payment Protection Plans (PPP))

Loans Over £4000 (past & present):- Including anyone whose home was repossessed under these loans or as a result of the failure of one of the PPI policies

ASU Policies that have been miss-sold with loan: - These tend to be single premium policies paid as a lump sum and borrowed as part of the loan.
The statistics currently available suggest that there might be a claim for incorrect paperwork with most of the sub-prime Lenders in possibly 40% to 50% of cases.
With regard to ASU miss-selling the percentages are likely to be significantly higher, possibly 70% to 80%.
With circa 6 million loans per year over the last 10 years this could affect as many as 2 million families or more.
The Consumer Credit Act [1974] covers all loans (called regulated loans) up to £25,000 (previously limited to £15,000). The act has very strict requirements about how paperwork should be set out, the information required completed and what information should be given to Borrowers and in what form.
In many cases if this paperwork is not completed correctly then the whole of the loan is invalid and the client is entitled to have the balance of any loan outstanding wiped off and to be reimbursed for any payments that have already been made including the removal of any charge under that security.
We offer assistance to clients whose claim lays both above and below the small claims threshold of £5,000.
The other area is the selling of Accident, Sickness and Unemployment loan protection policies (ASU Policies - most lenders have a policy with a similar name)
In many cases with these loans large commissions are paid, which are not disclosed to the client. These non-disclosures are a breach of the Agency arrangements between the client and their Broker and entitle the client to repayment of the premium in full, together with repayment of any commission and, as in many cases the premium itself is added onto the loan, recovery of any interest that they have already paid, as well as the writing off of any future interest under the loan.
As a guide where the original loan is at least £11,000 the clients claim is likely to be worth in excess of £5,000.  Where the loan is between £4000 and £11,000 the claim will probably fall within our small claims scheme.

Compensation may be awarded in two areas

Write-off
The loan itself could be written off and judged unenforceable.

Compensation
The client may be reimbursed for any payments already made on the loan, ASU, plus interest, together with payment for any consequential damages.
Where repossession has taken place, the damages would be substantial.

Where the claim is for less than £5,000 compensation the charge by the solicitor will be no more than 30% of recovered damages.
In a successful claim for damages above the £5,000 threshold the client’s solicitor’s costs will be recovered from the Defendant. In addition the Company will charge the client up to 25% of compensation paid to the client subject to a maximum of £2500.
No deduction will be made from loan write offs.
We offer an ethical and professional service to clients through an experienced panel of solicitors and suppliers.
Clients who have experienced difficulties as a result of being miss-sold financial products now have the opportunity to recover and write off their debt
We see an excellent opportunity and have combined our experience and expertise to a cause which has affected nearly every hard working person in the UK, coupled with the added satisfaction of being able to help millions of people, claim back what is lawfully theirs. Our aim is to make our database aware of the recent publicity surrounding the financial sector and evaluate whether they have a right to claim back money which is rightfully theirs. This could be due to unfair charges, mis-selling or even unbinding credit agreements. With the average high Street bank making profits for last year billions of pounds.
We feel that they are in a position to rectify and reimburse all customers with the right legal representation.
The products that we will be addressing are;

Bank charges
Personal protection insurance
Loans
Mortgages
Higher purchase

These products are a necessity to the people of United Kingdom and the approach use by a vast majority of these credit companies has been under hand and used to prey on the situation people find themselves in when applying for these products.