When first announced, the PPI claims deadline on 29th August 2019 seemed like a long way off. But, with just months remaining until the big day, individuals should act soon if they haven’t yet identified and claimed PPI.
The whole claiming process can take a few months to organise, so, the sooner you start your claim, the sooner you will be able to find out if you’re eligible for a refund. The banks will not accept any complaints after the deadline, so this is the final opportunity.
Below, we refresh your memory about PPI claims and why it’s essential to take the time to check before it’s too late.
What is PPI?
Payment Protection Insurance is more widely known as PPI. This type of insurance is sold with financial credit such as loans, mortgages and credit cards. The insurance means that if somebody is unable to make a payment due to sickness or loss of work, the PPI policy will cover repayments. For some individuals, PPI policies are great`.
Why Is It a Big Deal?
During the 1990s, the banks began to realise just how much money they could make from PPI policies and began mis-selling them to thousands of customers. Over 60 million policies were sold. Although it’s not known how many of these were sold incorrectly, it is likely to be millions.
The sheer amount refunded to customers demonstrates the scale of the mis-selling scandal. To date, the banks have repaid over £34 billion. In addition to this, the banks have paid thousands of pounds in fines to the Financial Conduct Authority (FCA). According to the FCA, in 2018, the average claimant received £2,004.
The majority of high street banks and lenders were involved in the mis-selling scandal. Lloyds Banking Group has refunded the highest amount to all customers —totalling nearly £20 billion. Many banks that have now been bought out, such as Egg and Bradford and Bingley, were also involved.
Claim PPI before the Deadline
There are two ways to claim PPI — using the services of a reputable PPI claims company or doing it yourself for free. No matter which option you choose, the most critical thing is to start your complaint soon. Here is an outline of how to file a claim both ways:
- Claim PPI Yourself— You could do a whole PPI claim yourself for free. It can be a tedious process, but it is possible, with some banks being more forthcoming than others.
The first part of claiming PPI yourself is to find evidence of a policy. You may still have a record of previous financial products, and PPI policies would be listed here. Be aware that it could be listed under another name, such as accident, sickness and unemployment cover (ASU).
If you do have the paperwork, you can start your claim immediately. Each bank website will outline the procedure for complaints, including the address to send the PPI claim. Some banks will allow you to claim PPI online, but others require you to write a complaint letter to the bank.
If you don’t have evidence of an old policy, you can contact the bank as it may still have a record of it. If it finds evidence of a policy, it will let you know, and you can proceed to make a claim. A solicitor may also be able to help.
- Use a Reputable PPI Claims Company— If you don’t have the time or can’t be bothered to file a case before the deadline, a claims company is the best choice. A company can investigate evidence of any old PPI policies and, if identified, the company will contact all the relevant banks and lenders.
All companies will charge a percentage on successful claims. After animposed fee caplast year, the maximum amount you will be charged is 20% + VAT (24% total). But, some companies do charge below this threshold. Always check the terms and conditions before working with any claims company.
The important part of any claim is showing evidence of the policy and explain how it was mis-sold to you. You may be able to claim due to high levels of commission, also known as “Plevin”. Once the bank acknowledges your claim, it should respond with an outcome within eight weeks.
If you don’t take the time to check for old policies now, you may never find out if you’re due a refund. Making a PPI claim is free, which is why it’s always worthwhile checking. Start the process now before it’s too late!
Disclosure – this post was written in collaboration with Canary Claims.