Financial watchdog the Financial Conduct Authority (FCA) is urging consumers to “jog their memories” back to the 1990s and 2000s when they were mis-sold products
With the deadline for payment protection insurance (PPI) fast approaching, the financial regulator is launching a final push to get people to check for compensation.
The Financial Conduct Authority (FCA) is urging consumers to “jog their memories” back to the 1990s and 2000s when they may have been mis-sold PPI products.
People looking to make a claim have just one month to go before the deadline on 29 August 2019. Consumers who haven’t complained to their provider by this date won’t be able to claim money back for PPI.
The FCA is urging consumers visit its website which includes a comprehensive list of providers that have sold PPI. This includes high street stores, catalogue firms, building societies and supermarkets.
The regulator is also extending its PPI contact centre opening hours from 5 August, to 8pm on weeknights and 5pm on Saturdays to provide further support to consumers.
87% of UK adults hit a “significant milestone” during the 1990s and 2000s – when many of the estimated 64 million PPI policies were sold in the UK according to the FCA.
Almost half bought a car (49%), more than a third purchased a house (35%) and over a quarter got married (27%).
Emma Stranack, the FCA’s PPI deadline campaign lead, says: “With just over four weeks to go until 29 August 2019, we’re asking people to cast their minds back to the nineties and noughties and what might have caused them to take out a loan, credit card or other finance agreement.
"Weddings, house moves, new cars and holidays are just some of the types of investments people commonly employ credit to help with.
“If this rings a bell and you think you might have been mis-sold PPI, the next step is to identify your provider. Providers have online tools that make PPI claims simple and will help you through the process.
"It’s free to do yourself and you don’t need to worry about paperwork. You just need your date of birth and previous home addresses to get started.”
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 Bank has been hit the hardest, setting aside more than £19 billion for claims so far.
Figures from the 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.
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.