There is now a cut-off date for mis-sold Payment Protection Insurance (PPI) claims — do you know when it is?
It’s been nearly a decade since the PPI mis-selling scandal came to light. The major banks were selling customers PPI policies but not doing so in the correct way. Millions of people didn’t need or want the insurance, yet ended up paying for it.
Following a series of fines in 2006, many consumers started to write to their bank to complain and make a claim for a refund and compensation. In 2011, the Financial Ombudsman stated new rules for selling PPI, causing the banks to look into thousands of more cases of mis-sold PPI.
Since then, over £32 billion has been paid by the banks to consumers. Millions of people have made successful PPI claims to their banks and lenders. However, the opportunity to do so is soon coming to an end.
The Financial Conduct Authority (FCA) has imposed a PPI deadline for all those wishing to make a claim. 29th August 2019 is the cut-off date for all those still needing to make a claim.
The PPI Deadline Date
The FCA launched its campaign for the deadline in August 2017. This meant it had two years to create awareness about the deadline. It didn’t want consumers to be left unaware of the deadline as it could be detrimental for those who think they can make a claim whenever they want.
The deadline aims to encourage individuals who may have been putting off making a claim to do it sooner, rather than later. The campaign features the recognisable face of Austrian-American actor, Arnold Schwarzenegger.
How Does the Deadline Affect Consumers?
With the clock ticking, you now have just nine months left to submit your claim to the bank. There is now a pressure to find old financial paperwork before August and ensure that the claim is submitted to the relevant bank or lender.
For those who don’t have the time or who don’t want to make a claim themselves, hiring a PPI claims company to handle a claim is an excellent option. Logican creates business processing software for the best PPI claims companies to ensure that each claim is stored in safe and efficient software.
Those who have previously made an unsuccessful PPI claim also have until the PPI deadline to claim again in the hope of success. This is thanks to the Plevin rule, created from the case of Mrs Susan Plevin. Mrs Plevin made a claim against Paragon Personal Finance for high levels of commission on the sale of her PPI policy. When purchasing the policy, she was unaware that the lender took 71% commission. The case went to the Supreme Court and it ruled that this was another form of mis-selling.
The case set a precedent for others who were unaware about high levels of commission on their PPI policy. If the lender had above 50% commission on a PPI policy, an individual can make a claim — even if their first claim was rejected.
During the height of the mis-selling scandal, it was common for the banks to have approximately 67% commission on their PPI sales, meaning thousands of more people could be due a refund.
Now that you are aware of the PPI deadline date, it’s important to start your claim soon. The banks are likely to be very busy as August gets closer, so start your claim now.
Find out if you are owed PPI before the deadline by contacting a PPI claims company. Logican provides PPI claims software for the very best companies handling claims.
