PPI Claims News: Time Limit Proposed by Cridland

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Confederation of British Industry director-general John Cridland called for authorities to set a time limit on reclaiming payment protection insurance. He states that while it is proper that customers should get their refunds being mis sold the insurance, all customers by now should know that they have been mis sold the insurance policy.

The CBI focused on claims management companies, an industry worth £3 billion, for aiding customers in making their claims for mis sold PPI. Cridland mentioned that the entire claims process only makes the claims management companies gain abusive profit in the process.

However, claims management companies, such as PPIco.org, say that they are only “helping hands” to customers. There is a difference between CMCs who “Cold-call” their customers and ask for upfront fees and reputable CMCs who would only be paid if they perform their job well. CMCs also state that they are only doing the job that banks were supposed to do in the recent years.

In 2011, the Financial Services Authority called upon banks to write to customers who are potentially mis sold PPI to make a claim. However, banks did not properly implement the said instruction. With still many customers unknowing that they were ineligible for their insurance, claims management companies sprung up everywhere. Each one is monitored by the Ministry of Justice.

Cridland states that the money banks give for PPI claims can be used for other economic problems aside from PPI mis selling. The proposal gave a deadline for payment protection insurance claims for at least six years.

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Bond Investments: Why You Should Consider Investing in Bonds

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Aside from stocks, an investor can fare very well in terms of investment with bonds. Company or government bonds have good yields, low risks and ample returns. While they might not get you as much as individual stocks, they benefit you with many things, including security for your overall investment.

A bond is a security that an investor can purchase from an issuer, a company with the license to sell the bonds and is affiliated with the government or the company. The issuer sells the bonds depending on the principle that you denote. You could usually purchase around $500 as as a minimum amount of bond for the US government for example. The principles vary depending on your country.

The bond secures the overall stock market, shielding it from risky financial situations. The money you invest goes directly to saving industries that are stakeholders to the stability of the stock market. You will also receive profit from bonds depending on their yields per year. If a $1000 bond gains 8% interest a year for its yield, you gain an extra $80 annually.

However, the quality of bond depends on the issuers credit rating. Defaults are avoided when an issuer has a credit rating of triple A. Anything below this might be risky, but bonds usually have low risk since they are invested in a growing economy. The amount you receive depends on the share’s lifespan, which can vary from 5-10 year contracts, in which in the end you receive your original investment and the interest your bond has received over time.

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