30 May 2018
The payment protection insurance (PPI) saga looked set to carry on rolling, with no plans afoot to place a deadline by when customers must apply for compensation. But then talk of a PPI deadline resumed back in late 2016 and by the summer of 2017, the PPI deadline was set. What are the pros and cons? And what do you need to do now?
Larger banks and lenders have probably been hit hardest by the PPI mis-selling scandal. With mis-sold policies being accountable for 80% of their annual profits for several years running, they have the most to lose, it would seem, when it comes to paying customers back.
They had been asking the Financial Conduct Authority for a deadline for some time, although many people believed this was not in favour of the consumer but their own. Plunging profits make a bank vulnerable to hostile takeover by another financial company.
At the same the banks were leaking profits to PPI compensation, some were facing heavy fines for other poor dealings, such as 'fixing' an exchange rate in their favour.
The banks were desperate for a PPI compensation deadline. And the sooner, the better.
However, not all banks and building societies were in favour of imposing a deadline. It seems the smaller lenders will need time to be able to balance their books. A sudden flurry of claims for PPI compensation, they say, could really sink their banking ship.
And then there are those on the side of the consumer who argued that only 40% of those entitle to make a claim had done so. How, they asked, there consumers going to be given all the information and encouragement to pursue a PPI compensation claim?
It is set. If you believed you were mis-sold PPI before the summer of 2017, you have until 29 August 2019 to lodge a complaint with your bank - and you must do it by 11.59pm on that day. It will be too late by midnight.
It seems the deadline has pleased no one. Consumer groups are livid at what they see as the banks getting their own way.
And whilst the banks are happy to see a deadline in place, they wanted one that was sooner. At the time the deadline was announced, it was two and a half years away.
We have started to see enquiries about how we can help people claim compensation start to increase and we are submitting more claims on behalf of people.
The PPI deadline is firm and if you want to claim your money back, you need to start now. As we publish this blog, there are just over 12 months left on the clock.
Here at Scottish PPI Claims, we have helped thousands of people claim the compensation to which they are entitled - and we are proud to have done so.
With an incredibly high rate of success, we have claimed back thousands of pounds in PPI compensation - isn't it your turn?