08 May 2017
The announcement by the Financial Conduct Authority that the deadline for PPI claims is set for 29th August 2019 means that the writing is on the wall for PPI compensation claims.
By the last Thursday in August 2019, anyone wishing to make a claim for PPI compensation will have to lodged their complaint. After this date has passed, there will be no new PPI cases accepted unless you were mis-sold it after August 2017.
Thus far, over £20 billion has been paid to customers who had PPI mis-sold to them by banks and lenders. Even though you may be thinking the deadline is over two years away, there are many reasons not to wait around for it to arrive.
Unless something explosive happens in the next few months, the deadline for PPI compensation claims of August 2019 will hold firm.
However, there have been so many changes and issues in the last few years relating to PPI, never rule out any challenges and issues!
The FCA are spending £42 million - a bill paid by the banks - on an all-encompassing promotional campaign that they say will reach everyone in society.
Even though they say that there shouldn't be a bottleneck, some critics argue that everyone with a claim does so in the next two years, the compensation process could take years to unravel.
There is a new category of mis-selling called 'Plevin', named after the customer who brought the case.
This new category within the PPI compensation process stipulates that if more than 50% of the PPI's cost was paid in commission to a lender or broker, you are entitled to this money back.
This ruling comes into effect from August 29th this year and thus, some people who have already claimed may get more back. For this to count, however, your account will need to have been active (i.e. made a payment on it) from some point in 2008.
It is a staggering fact but Martin Lewis of MoneySavingSupermarket.com says that as much as 67% of what customers paid for PPI was pocketed by the banks.
If you had known the commission was so high, wouldn't you have queried the cost?
This is your money and it cannot be emphasised enough that it was a policy that was mis-sold to millions of people. If you had a credit card, store card, personal loan, mortgage or any kind of account from a bank, lender or through a high-street retailer, you could be entitled to claim thousands of pounds back.