The PPI deadline is now just under ten months away. 29th August 2019 is the cut-off date for consumers to contact their bank regarding any mis-sold PPI policies. To date, over £32 billion has been refunded to customers. With the clock ticking, people need to act soon if they want to find out if they are due a refund.
Below, we explain about what PPI is, how it was mis-sold and, most importantly, how you can reclaim PPI before the impending deadline.
What Is PPI and How Was It Mis-Sold?
PPI is the acronym for Payment Protection Insurance. This insurance was commonly sold in the 1990s alongside credit cards, loans and mortgages. It would cover repayments in the event that the individual couldn’t repay due to sickness or unemployment.
However, the banks soon realised how lucrative this insurance was and began using numerous tactics to sell the insurance to customers. Some bank employees told customers that the insurance was compulsory or that it would help them to be accepted for the loan. In other cases, it was added automatically and without knowledge or consent.
When it came to light how many of the policies were mis-sold, individuals began making claims to their banks for a refund. The FCA is hoping the deadline will encourage those who have not yet claimed to do so.
How to Reclaim PPI
Here is a simple step-by-step guide on how to reclaim PPI. Remember, with just over nine months to go, the sooner you start your claim, the sooner you can receive your money.
- Identify any mis-sold PPI
This can be the hardest part — finding out if you had any PPI policies. If you’re lucky enough to have any old financial paperwork, this is the best way to identify PPI. It might be listed as something else, such as Accident, Sickness and Unemployment cover (ASU), loan care or card protector.
If, however, you no longer have financial paperwork, it’s not the end of your claim. You can contact the bank or lenders you remember having products with and ask them to do a PPI check. Alternatively, use the services of a reputable PPI claims company, which will do this for you.
- How was the PPI mis-sold?
When contacting the bank to make a claim, you will need to explain how the insurance was mis-sold to you. There are a few common ways that the insurance was mis-sold:
- Consumers were told it was compulsory with the product
- Banks said it would improve your ability to get the loan or credit card
- You were pressured into buying it
- PPI was added without your consent
- You were not asked about your employment or any medical conditions
When making a claim, it’s important to state the form of mis-selling. The bank needs to know how the PPI was mis-sold to refund you and, where possible, you need to provide evidence of this.
- Make a claim to the bank
Once you have evidence of your PPI policy and know how it was mis-sold to you, you can make your claim. Some banks allow you to make a PPI claim online, while others you will need to write to. A PPI claims company can do all of the work for you, including making a claim to the bank and chasing the lender to find out the status of your claim if an outcome hasn’t been received.
- Wait for an outcome and potentially contact the Financial Ombudsman
The bank should reply with an outcome within eight weeks of receiving your claim. Unfortunately, it can take longer — but the bank should notify and inform you of this. If the bank upholds your claim, you should receive a breakdown of how much you will be refunded, and the money will follow shortly afterwards.
If the bank rejects your claim, but you feel confident that you have a strong case, you can refer the case to the Financial Ombudsman Service (FOS). It will review the case and decide to uphold the bank’s decision, or reject the bank’s decision, resulting in a refund.
The process can take a number of months, so it’s vital to start soon. With the average claimant receiving £1,700, it’s worth taking the time to do it yourself or using a claims company to do it for you. Always find a reputable company offering a low service fee on successful claims.