As you would have seen through the nationwide advertising campaign featuring an animatronic Arnold Schwarzenegger head berating people for not claiming PPI, the deadline for PPI claims is fast approaching. After August 29 next year you will no longer be able to reclaim ppi compensation. In this article we’re going to explain everything you need to know about PPI ahead of that very deadline to ensure you get the most out of your claim.
What Is PPI?
In 2011 as you will undoubtedly know, it was revealed that millions of consumers were wrongly sold a Payment Protection Insurance (PPI) as part of a loan or mortgage that they had taken out between the years 1990 and 2010.
Since that revelation, more than £30 billion worth of compensation has been claimed by those same consumers, making it one of the most expensive scandals in UK financial history.
Why Did Banks Begin To Sell PPI?
In short, for financial gain, in the 90’s lenders discovered that they could add commission onto policies that included PPI, therefore making the insurance highly lucrative.
They claimed that the insurance would help protect the borrower should they become unemployed, either through termination of their contract or illness; however this was later found to be false.
It is estimated by the BBC that from the first PPI policy sold in 1990, that more than 45 million protection insurances were added to loans in the subsequent 40 years.
Am I Eligible To Make A Claim?
If you had a loan, a mortgage, credit card or store card, between the 1990s and 2011, you could well be owed PPI compensation. You can find out whether you’re eligible for a PPI claim, by either using a claim company or collating evidence yourself, here are just some of the criteria for a mis-sold policy:
- You didn’t receive sufficient information when you were sold the policy
- A PPI policy was added to your loan without your knowledge
- You were misled to believe you had to have PPI included in your loan
If your experience of being mis-sold PPI falls into any of three categories above then it’s likely you are owed some form of compensation.
How Much Could I Be Owed?
Britain’s largest and most beloved banks, Lloyds, Barclays, RBS, HSBC and Santander have collectively set aside substantial funds to cover the rising cost of PPI claims.
The average amount of compensation that consumer’s tend to receive is £2000, but there have been pay outs worth as much as £153,000.
What Does The PPI Deadline Mean For Me?
The Financial Conduct Authority (FCA) announced the deadline in March of last year , alongside the statement that, “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off.”
Although this may be seen as just a ploy to bail out the banks, it does also benefit claimants as well.
As part of the deadline the FCA has ordered that lenders and banks make it as easy as humanely possible for consumers to check if they were mis-sold PPI, meaning it’s the simplest it’s ever been to make a claim.
Also, with the deadline bringing an end to claim management company’s prospective business, many of these agencies are offering their services for the lowest fee they ever have, meaning that it’s never been more affordable to make a claim as well.
We hope that this guide has helped you understand more about PPI, as well as what the deadline means for you.
