It’s now just over a year until the PPI deadline. If you haven’t heard about it, where have you been? Arnold Schwarzenegger’s robotic head can be seen on TV adverts and billboards shouting at people to “do it now!” — he means make a decision about whether you want to make a claim.
We’ve all heard about PPI claims, but the window for making a claim is finally coming to a close. The Financial Conduct Authority (FCA) announced the 29th August 2019 as the cut-off date for contacting your bank regarding a claim. This means, if you haven’t yet tried to reclaim PPI, now is the time to do so.
If you don’t believe that you were affected by PPI, think again. Thousands of people have made successful claims and were never aware that they bought PPI in the first place, thanks to tactical mis-selling techniques such as adding it onto products automatically or telling consumers it was compulsory. If you had a loan, mortgage or credit card in the 1990s or early 2000s, it’s worth taking the time to check for mis-sold PPI.
However, a supreme court-ruling now means that even more consumers are eligible to make a claim — even if you remember purchasing PPI.
What Exactly Is Plevin?
You might have heard the term Plevin when reading about PPI claims. Plevin refers to Mrs Susan Plevin. Her PPI case was different from others, as she made a case based on high levels of commission. When she bought PPI from Paragon Personal Finance, 71% of the PPI sale was a commission. This was not disclosed to her.
During the case, the Supreme Court ruled that this itself was a form of mis-selling. Mrs Plevin received her refund, paving the way for thousands more people to complain to their banks for the high levels of commission on their PPI sales. If over 50% of your PPI sale was a commission, you are able to make a claim. At the height of the scandal, it was common for the banks to make 67% commission on a sale.
The Plevin rule means that, even if your original PPI claim was rejected, you can try again, citing Plevin as the reason for making the claim. It also means that if you remember buying PPI, but were not told of the commission amount, you can make a claim.
How to Make a PPI Claim
If you want to make a PPI claim before the impending deadline, there are two ways to do so. You can either contact the bank directly or use the services of a PPI claims company.
The advantage of using a claims company means they will uncover PPI from any previous accounts and contact the various banks or lenders for you. For busy mums, this is an ideal choice. The company will take a small fee on all successful claims, but, after a recent government ruling, no PPI claims company can charge more than 20 + VAT (24% inclusive). You should never pay an upfront fee and many reputable claims companies charge well below this fee.
If you want to make a claim yourself, you will need to find old paperwork with evidence of PPI and send this to the bank, along with a statement of how you believe the PPI was mis-sold to you.
Remember that you have just over a year left to claim, so start now before it’s too late. Since 2011, the banks have repaid over £30 billion to consumers for mis-sold PPI. WIth 64 million policies sold in the UK, it’s likely that many of these were mis-sold and that billions more pounds will be refunded to customers before the deadline.
Disclosure – this is a collaborative post in conjunction with CanaryClaims.