Did you know that the banks have paid over £33 billion to consumers for mis-sold PPI policies?
This amount is going to increase significantly before the PPI deadline.
If you’re not up to speed about PPI and whether you should make a claim, this guide will talk you through everything you need to know.
PPI is short for Payment Protection Insurance. This insurance policy was sold alongside mortgages, loans, credit cards, store cards and more.
The banks realised that this insurance was lucrative and it could gain significant profits from selling it.
As such, bank employees started tactically mis-selling PPI to millions of customers.
Some of the common mis-selling tactics included:
Telling consumers it was compulsory with the product.
Adding it automatically.
Not explaining the full terms and conditions, or checking medical and employment history.
Telling consumers it would improve a credit score or improve the possibility of being accepted for the loan/mortgage/credit card.
Adding undisclosed high levels of commission (a claim can be made about this due to the Plevin ruling).
When the mass mis-selling came to light, individuals started to make complaints to their banks to receive refunds on their policies.
It’s estimated that over 60 million PPI policies were bought in the UK — millions of these could have been mis-sold.
For years, customers have been able to claim PPI and receive a refund from their bank if they were mis-sold a policy. However, this is coming to an end due to the PPI deadline.
When Is the Deadline?
29th August 2019 is the last date of submission for all PPI claims.
If you think you are due a refund for a mis-sold PPI policy, you must contact your bank before this date.
This date was chosen by the Financial Conduct Authority (FCA) with the aim of encouraging consumers to make a claim, rather than put it off.
Since the announcement of the deadline, thousands of people have submitted PPI claims to their bank or lender. With just over six months to go, you need to do the same if you haven’t done so already.
Why Bother Claiming PPI?
The process of making a PPI claim can be lengthy, especially if you can’t find your paperwork.
The whole process can take up to six months, but the result can be significant.
The FCA reports that the average PPI refund is £1,700.
However, some individuals have received more, especially if they had multiple PPI policies.
In six months, individuals won’t be able to make a claim, so it’s worthwhile finding the time to uncover any mis-sold PPI policies now.
How to Make a PPI Claim
There are two ways to make a PPI claim. You can either choose to do it yourself, or you can use the services of a claims management company. A company can handle all aspects of a claim for you, from researching any PPI policies to contacting the bank on your behalf.
The first step of any PPI claim is to locate your old financial paperwork. This will allow you to find old PPI policies that you may not have known about or may have forgotten. It may also be listed under another name, such as Accident, Sickness and Unemployment (ASU) or Card Protector. Once you have this paperwork, you can contact your bank and explain how you believe it was mis-sold to you.
If you can’t find your old financial paperwork, you can contact the bank to see if it has a record of it, or use the services of a creditor or PPI claims company. A claims company can make the claim on your behalf if you wish it to do so.
How Long Will a PPI Claim Take?
The bank will first acknowledge that it has received your claim. From this date, it should reply with an outcome within eight weeks.
If you don’t hear after eight weeks, it’s important to follow up.
When you receive a response, the bank will either uphold your claim, where you will receive a refund shortly afterwards, or reject your claim.
If it’s the latter but you feel that it was the wrong decision, you can refer the case to the Financial Ombudsman.
However, be aware that claims sent to the Ombudsman can take up to two years to be resolved.
The clock is ticking — even if you don’t remember having PPI, taking the time to check is well worth it. Don’t miss out before the PPI deadline.
*this is a collaborative post