PPI mis-selling claims: The deadline approaches

Image copyright
Getty Images

An eye-watering £35bn has been paid in compensation for mis-sold payment protection insurance (PPI), but there is not long left to make a claim.

UK banks and loan providers have been paying compensation, but they only have to consider claims made by 29 August.

The looming deadline is likely to lead to even more texts about claiming.

The insurance was mis-sold to people who were borrowing money, but who did not need the cover or would not be able to use it.

How to make a claim

Image copyright
Getty Images

More information on PPI and how you can claim is available on the FCA website.

A free phone line, managed by the FCA, can be called on 0800 101 8800.

Various templates are also available to download, along with guidance on claiming, on websites such as Which?, MoneySavingExpert, and Resolver.

As many as 64 million PPI policies were sold from as long ago as the 1970s.

The policies were designed to cover loan repayments if borrowers fell ill or lost their job.

Not all of them were mis-sold, but sales were pushed on a huge scale to people who should never have had PPI.

Eventually, loan providers started to pay compensation for these cases, and the total bill has reached a level never seen in the sector before.

Why the adverts?

A campaign is being run by the regulator in this area, the Financial Conduct Authority (FCA), informing people who believe they were mis-sold PPI about the upcoming deadline.

As part of this campaign, they are using the image of actor Arnold Schwarzenegger, and his character in the cult Terminator films, in adverts.

The latest feature his animatronic head in a hydraulic press, urging people to take action on PPI before it is too late.

Emma Stranack, from the FCA, said: “With just over 10 weeks to go, time is running out to claim back money for PPI. Simply put, if you haven’t complained to your provider by 29 August, 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.”

More nuisance texts

A massive industry has built up of companies offering to make compensation claims on an individual’s behalf.

Anybody can make a claim themselves, but these claims management companies also do it and then take a cut of about 25% of any compensation as a fee.

Many have used adverts on social media or text messages to advertise their services.

These are expected to peak in the coming weeks as the deadline gets closer.

Source link