In the past six years, over £27 billion has been paid out due to mis-sold PPI. Millions of people in the UK are owed money by their bank or credit card providers for mis-sold payment protection insurance (PPI).
The banks have suffered massively for the mistakes they have made. However, they aren’t the only ones suffering from PPI claims. The Financial Ombudsman has been struggling with PPI claim cases being referred to them for final decisions. The ever-increasing backlog of complaints means that some consumers are waiting up to two years for claims to be resolved.
The Financial Conduct Authority (FCA) decided that a deadline needed to be put in place for people to make claims — that date is 29th August 2019. This means that consumers have two years to contact a PPI claims company or to make a claim themselves. The FCA is hoping that a deadline will encourage people to make claims and not put it off any longer.
Two years may seem like a long time, but it can take banks months to resolve a claim. If you are unhappy with your result, it will take even longer if referred to the financial ombudsman.
This means now is the time to organise your PPI claims and hold your bank to account for any money they owe you from mis-sold PPI.
How Can I Make a Claim?
Making a PPI claim against your bank (or even multiple banks) is very simple. PPI was mis-sold on products such as credit cards, mortgages, loans and overdrafts. Find paperwork for any of these products and check if payment protection insurance was added.
Many people have been surprised to find that PPI was added to their products. Some banks did not clearly explain what PPI was or implied that it was a compulsory purchase. Internet bank Egg was found to have added it to their customers’ credit card policies without their knowledge.
If you no longer have your paperwork, this isn’t a problem. A PPI claims company or creditor should be able to attain the relevant information and paperwork. But, you will need the essential details such as your full name and address.
Should I Use a PPI Claims Company?
It’s likely that you will have seen adverts on the TV, received phone calls and text messages from various PPI companies. PPI claims companies will assist you with making a claim. They will contact the bank on your behalf and can help obtain any paperwork or information you no longer have.
The term ‘PPI claim no win no fee’ is used frequently by claims companies. This means if you work with a PPI company to make a claim against your bank, you won’t need to pay any fees unless you make a successful claim. If you do make a successful claim, the percentage taken by PPI companies can vary considerably.
A PPI company is ideal if you are busy and don’t want the hassle of dealing with the paperwork and communicating with the bank. Find a PPI claims company with a low fee and reputable testimonials. Feel free to ask as many questions as you need to understand the process.
Start Your Claim Now
Although every claim is different, it’s not uncommon to be owed thousands of pounds. It is believed that the average payout is £3000 (this figure is an approximate gross figure. You may be liable for income tax and fees if you use a claims management company). Although this figure will vary case by case, it’s worthwhile starting your claim now to check if you are owed PPI. Don’t lose out on money you are owed before the deadline.