Any individual who believes that they might have been mis-sold PPI have exactly one year to claim any lost funds. The FCA have set a deadline of 29th August 2019 by which all claims must be paid out and any claims thereafter will not be eligible.
This news will be a relief to UK households who are tired of the cold calling, text messages and repetitive jingles on the radio trying to help you claim PPI. But a deadline means that we are not far from this three-letter acronym being wiped from the English dictionary.
Payment Protection Insurance (PPI) was an additional policy sold by mortgage, loan and credit providers and brokers to help you protect your assets in the event of illness or injury. However, it emerged that this policy extension was void and did not provide any cover. Subsequently, the UK government granted to refund any individual by law who had purchased PPI and the UK banks were forced to put aside £35 billion in potential compensation claims.
Rather than an automatic refund, individuals are still required to claim the compensation themselves which can sometimes be worth a few hundred or thousand pounds. One case described by Money Saving Expert shows that an individual received £22,000 from a mis-sold PPI case.
But since many are still unsure if they ever purchased PPI to begin with, this has led to a new industry of call centres and brokers looking to help you claim and take a fee in the process – even though this can be done directly by the individual and their credit provider. It is not a difficult process – you can simply review all the loan and financial products you have taken out in the last 20 years and just ask the provider. There are also calculators and checkers online which can let you know in just a few minutes.
The number of complaints regarding PPI has been astronomical, with the Financial Ombudsman Service recording around 3,000 complaints for PPI per week. With increased pressure, the FCA has agreed to a deadline for all claims to be made.
As the deadline gets closer, we may expect one final push from claims companies who are looking for their final payday. Elsewhere, the claims companies are looking to shift their attention to other industries in need of claims such as car accidents and payday loans in the UK.
It was announced this week that payday loan giant Wonga.com has received a £10 million bailout from its original investors to avoid going into administration. A spokesman for the company said that they had been hit by huge volumes of compensation claims which has seen over 300,000 borrowers refunded since 2014, worth a total of £220 million. No doubt that this will be the next jingle that you hear on the radio.