Consumers are being urged to check if they are owed money, with just 10 weeks to go until the deadline for Payment Protection Insurance (PPI) compensation claims can be made.
The UK financial regulator is warning consumers that the cut-off date for making a PPI claim is 29 August 2019. After this date, consumers will not be able to receive compensation.
Figures from the Financial Conduct Authority (FCA) show that £334.3 million was paid out to consumers who complained about PPI in April.
This means the total amount of PPI claimed since January 2011 now stands at £35.3 billion.
Emma Stranack, the FCA’s PPI deadline campaign lead, says: “Simply put, if you haven’t complained to your provider by 29 August 2019, you won’t be able to claim money back for PPI – so you should make your decision as soon as possible.
“Checking if you had PPI is simple and free. Don’t worry about paperwork, you only need your date of birth and relevant previous addresses.”
PPI was designed to cover repayments in certain circumstances where you couldn’t make them yourself. For example, if you were made redundant or could not work due to an accident or illness.
As many as 64 million PPI policies have been sold in the UK, mostly between 1990 and 2010.
However, millions of PPI policies were mis-sold by the banks to customers who did not need them or were put under pressure to sign up - in some cases without their permission or knowledge.
The scandal has created huge costs for banks, with over £29 billion paid out in compensation since the crisis began. Lloyds has been hit the hardest, setting aside more than £19 billion for claims so far.
Personal finance expert and consumer champion, Sarah Pennells, says: “The PPI deadline is fast approaching – so now is the time to contact your bank, loan or card company as soon as possible. You can complain to them directly for free and you can use the FCA’s website for more information.
“You don’t have to use a claims management company as providers are supposed to make sure that complaining about PPI is straightforward.
"I am working with the FCA to help remind consumers that now is the time to decide whether or not to make a complaint before the deadline on the 29 August 2019.”
Claim back PPI
Anyone who has taken out a credit card, loan, overdraft, mortgage or store card over the past 30 years can make a claim.
If you have taken out a loan or credit product but aren’t sure whether you had PPI, you can ask the provider of those products.
Your provider will then get back to you to tell you if you had PPI. If you did and you are unhappy with how it was sold you can then make a complaint.
If you complain to your provider directly, you will avoid paying a claims management company, which could take up to 25% of your compensation.
If you have previously been rejected, you may now be entitled to PPI because of a new rules.
The Plevin ruling in November 2014 held that claimant, Susan Plevin, was treated unfairly by her lender, Paragon Personal Finance Ltd, because she wasn't told about the large amount of commission that was taken from her PPI payment.
This means that if more than 50% of your PPI’s cost went as commission to your bank and you were not told about it you are entitled to your money back. As the average commission paid was 67%, millions more people could get their money back.
You can find out more about making a complaint on the FCA’s website at fca.org.uk/ppi or by calling the FCA helpline on 0800 101 8800.