Consumers who were mis-sold Payment Protection Insurance (PPI) now have two years to submit a claim against their provider.
The Financial Conduct Authority (FCA) announced in March 2017 that it will not permit any more claims regarding the historic mis-selling of PPI after 29 August 2019.
Only complaints about PPI policies sold after 29 August 2017 will be permitted after that deadline.
Despite the cut-off date being two years away, the FCA is encouraging consumers to act early. It believes that setting a final date will encourage more people to make a complaint and is launching a major advertising campaign starring Arnold Schwarzenegger to alert consumers.
The regulator says more than £27 billion has already been paid out to consumers who were mis-sold policies, often when they took out a credit card, loan or mortgage. These policies were typically sold in the 1990s and 2000s.
PPI continues to be the most complained-about financial product in the UK. The most recent data shows that more than half of all financial complaints to the Financial Ombudsman Service related to PPI in the second quarter of 2017.
The FCA says that while 29 August 2019 is the general deadline for PPI complaints, some consumers may have less time to complain. Those who may have earlier deadlines include customers who received a letter from their provider about the way PPI was sold. It says most of these letters were sent between 2012 and 2015.
Consumers who made an insurance claim on a PPI policy that was rejected by their insurer may also have a shorter deadline. Please check with your providerif you believe this may affect you.
How can I make a PPI complaint?
If you think you’ve been mis-sold PPI, you first need to complain to the provider. If it doesn’t respond within eight weeks or you’re unhappy with the response you get, you can take your complaint to the Financial Ombudsman Service for free. You do not need to use a claims management company.
PPI is supposed to cover loan repayments if, for example, you lose your job, or stop working due to illness. However, millions of people are thought to have been mis-sold these policies.
To read more about making a complaint or to download a template letter read Moneywise’s guide to PPI complaints.