The PPI scandal has been going on for years. It was back in 1998 that Which? first raised concerns about PPI being a poor value-for-money product. Since then, various investigations highlighted how banks have been misselling PPI to people. Many customers didn’t understand all the terms and conditions, or felt forced to purchase it.
Since 2011, a staggering £27 million has already been paid to customers for compensation and refunds for mis-sold PPI. In the upcoming weeks, you may hear about the PPI deadline more and more. So, here is everything you need to know about the PPI claims deadline and how to make a claim.
What is the PPI Deadline?
In an attempt to get people claiming who haven’t yet, the Financial Conduct Authority (FCA) has set a PPI claims deadline for August 29th, 2019. Official promotion of the deadline will begin in August 2017. Many believe that this will create an increase in calls from PPI claims companies and put extra strain on the banks.
While there are plenty of people who believe the PPI deadline is good, one claims management company feels the deadline is “clearly unlawful”. It believes there shouldn’t be a deadline for customers reclaiming money which is rightfully theirs. As such, they are launching a judicial review of the decision made by the FCA.
Whether you believe the deadline is good or bad, it seems pretty concrete right now, which means it’s time to take action.
How Long Will a Claim Take?
A claim can take a number of months to complete, which is why it’s important to get started on PPI claims as soon as possible. The banks can take up to eight weeks to reply to an initial response. The whole process takes approximately three to four months. If the banks receive more complaints when the PPI deadline is widely promoted, the process may be much slower.
If you are unsatisfied with the result of your claim, you can refer the case to the Financial Ombudsman. However, due to the backlog, this can take up to two years to be pushed through.
How Can I Make a PPI Claim Before the Deadline?
Making a claim against your bank is a relatively simple process, but not all banks are forthcoming with information about how to make a claim. Although some banks have actively contacted customers who may have been mis-sold PPI, the response rate from these letters has been low. This could be due to people moving address and no longer being a customer of that bank.
To make a claim, you can either contact the bank directly or use a trustworthy PPI company. If you have the relevant paperwork relating to the account, this should help speed up the claiming process. If not, a PPI claims management company should be able to find this for you, or an independent creditor.
How Can I Find the Best PPI Claims Company?
If you decide to use a PPI company, ensure that you choose a reputable firm that is registered with the Claims Management Regulator. To find the best PPI claims company, ask friends and family who have made successful claims against their banks.
The amount charged by PPI companies can vary dramatically; some claims management companies charge over 30% if your claim is successful. The best PPI claims company will charge less, as they want you to succeed and receive money that is rightfully yours. Look for a company with a fair charge and offer a personal service. The best claims management companies often operate on a PPI no win, no fee basis, meaning that unless your claim is successful, you won’t have to pay a penny.
As always, check the terms and conditions before entering into any contract with a claims management company.
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