Personal Loans PPI, Reclaim With Beat The Banks
Personal Loans remain one of the most profitable products as far as banks are concerned. So why is this?
Well, unlike mortgages where you only pay interest on the balance outstanding on any given day, on the vast majority of cases, the interest is front loaded and added to the borrowing from the outset. To explain, let’s say you borrowed £10,000 over five years and the interest rate was 5% flat. This would mean that you would pay £500 per annum in interest or £2,500 over the term of the loan. This amount would be added to the loan from the outset. In other words you would be borrowing £12,500 from day one. So, even though the flat rate of interest was 5%, the true rate of APR would likely be closer to double, at approximately 10%.
Figures over the years prove that only a relatively small portion of personal loans go full term, most are paid off and re-financed well before that. The problem for the consumer is that currently and much more so historically, that a loan repaid half way through its term, certainly doesn’t mean the balance in halved when you are given a settlement figure. It’s all to do with all the interest being added right at the very outset.
For a loan taken with PPI the news was even worse. The loan premium was added to the borrowing right at the start too, plus the interest on it as well. So what might have started off as a fairly palatable £10k loan with a flat rate of 5% over 5 years, had now grown arms and legs and could easily be hurtling towards a much harder to swallow, £17k.
But, the banks weren’t happy with a tidy little return like that, they had much bigger plans and this was where the poor consumer became a large chunk of meat in the lender’s sandwich. Let’s explain more, well first of all the banks had an aggressive policy of targeting loan holders, who in some cases may have only been a relatively short period of time into their loan borrowing, some banks this was certainly more aggressive. A fine (if that’s the word) example of this would have been Lloyds TSB, Bank of Scotland, Halifax and RBS. While at the Clydesdale and Yorkshire banks, they even had a defined procedure and name for this process – it was called Scott Lane, after the branch of the Yorkshire where it was devised.
Typically all the banks were guilty of quoting personal loan monthly repayments to include PPI and customers, who justifiably refused to take PPI with the borrowing, risked being grilled by the branch manager and even an area manager, until they could take no more and simply gave in.
So why the hard sell, well, these lump sum loan premiums were simply massive earners for all the banks, with commissions as high as 70% only one high street lender gave a pro-rata rebate if the borrowing was repaid early, with the others, most of the premium was eaten up by commission right from day one. Repay the loan early and you might only get the merest fraction of the premium back. So, if you were the banks’ best friend back in the day, now you absolutely know why!
At Beat the Banks we are experts on reclaiming mis-sold PPI on the whole range of personal loans sold by all the UK lenders. All out clams experts, were former bank lending managers and we always undertake full file checks from each and every lender to make sure you receive all the compensation that you are rightfully due back to December 1989. Remember too, for mis-sold PPI on bank loans, you don’t just get back the premium plus the interest, you also get back 8% simple interest for each year since the premium was paid and massive 15% on borrowing prior to April 1993.
To find out more you can call our team on 01382 200474 or for free on 0800 193 1234.
Personal Loans And PPI - The Facts
Remain one of the most profitable products far as banks are concerned.
For a loan taken with PPI the news was even worse. The loan premium was added to the borrowing right at the start too.
All PPI claims need to be registered by August 2019, if you were mis-sold PPI by any of the banks on a personal loan you need to act now.
From Our Clients
“Huge thank you to the team. After attempting to claim PPI myself and getting absolutely nowhere, I got Beat the Banks involved and ended up getting £12,000. What a result. Beat the Banks made it so easy and were committed right to the end.”Shona, Dundee
“From previous experience of PPI claim companies, I was a bit dubious if anyone could help me but I thought I would try Beat The Banks. To say I am pleased with the service and conclusion to my claim is an understatement. Beat the banks and my claim handler in particular handled all aspects of the claim from Clydesdale Bank with professionalism, courtesy, and efficiency to secure a positive result on my behalf. I would certainly recommend the services of Beat the Banks to anyone who thinks they have PPI claim, especially with the Clydesdale Bank.”Mr A McQuillian
“Down entirely to Mike’s hard work, we previously had a successful claim with Clydesdale Bank. Mike was convinced we had more loans with PPI and he was relentless in efforts to recover our paperwork from the bank. Finally, after many attempts, enough records were recovered to submit several claims. We have now received much more compensation, covering loans going back many, many years. If it had not been for Mike and the team at Beat the Banks this would never, ever have happened. Literally, all we did was sign our name and bank the cheque.”T & A, Dundee
“I was apprehensive about using a company to claim my PPI as I had previously responded to a “cold call” and was pestered with calls. I heard about Beat The Banks on a local radio station and because they were based in Scotland I felt comfortable approaching them. I have had a very positive experience with Beat The Banks. They are not pushy and answer any queries timeously. All the Agents I have spoken to were knowledgeable, polite and friendly. After the initial information gathering conversation, they understood my needs and just got on with my claim. No hassle. Even when it was clear that my claim was of a relatively low value they processed without delay. I would definitely recommend using Beat The Banks …. they put all the other companies out there to shame.”Mrs S, Falkirk
“Excellent service so helpful, I received a substantial sum back that I had no idea I was due, thank you again to Beat The Banks especially to Gary who was so helpful and efficient in every way.”Mrs M, Elgin
“We had no paperwork but £52,500 reasons to say thank you, we are now living our Spanish dream! Exceptional service.”Dave & Linda , Dundee
“Have just found out I have won all my cases with the bank, going back many years and been awarded compensation of just over £15,000!”Mr S, Dingwall
“We really appreciate the doggedness and professionalism of Jenna and the team at Beat the Banks. This is something we’d never have gotten round to doing and we’re so glad we went through the process with professionals as we’ve now had great results. Only positives have come from the experience.”Mr & Mrs M, Shetland
“From beginning to end, Beat the Banks have been very efficient. I am very pleased with the service from Jenna and the team. I am highly delighted and I have been recommending all of my friends.”Mrs C, Glasgow