2019 deadline set by Regulator for PPI claims
Another £8 billion or so for PPI claims before this ends…
Yesterday The Financial Conduct Authority announced a cut-off date of August 2019 for consumers to file claims. Banks having already shelled out around £26 billion of the £34 billion set aside for claims.
The Banks have also been ordered to write to around 1.2m customers who may be eligible for a redress if their claims were turned down and if they were charged a commission fee.
The number of complaints has reached over 18m with more to come.
Lloyds Banking Group has sold the most PPI and set aside a whopping pot of £17bn, which can’t have helped its recovery.
Complaints about any PPI sold after the end of August this year will not be subject to this new cut-off date.
Claims management businesses have often been accused of charging high fees and causing a lot of noise, sometimes known as ambulance chasing.
The deadline does provide some clarity for consumers and the awareness campaign will also help to stimulate action to finally draw a line underneath this for everyone.
I suspect some claims handling firms will be disappointed in an end date, but for the consumer it’s an opportunity to conclude their issues in this debacle. A claims management company may take a quarter of your PPI compensation or more. I think the telephone calls, advertising and text messages will surge soon – funny that! But you don’t have to use one.
How to Claim
1: Find everything/documents you can and make copies. Especially anything proving you took out the policy, policy document and payments made.
2: Write a letter to the mortgage, loan or credit card provider who sold you the PPI product. There are templates you can use from the Money Advice Service website. Then send all the documents you think might be relevant together with the reason you think you were mis-sold it.
3: If you don’t get a response or decision within eight weeks, send a letter of complaint to the Financial Ombudsman Service. The Ombudsman will ask you to fill out a questionnaire to decide whether or not you’ve actually been mis-sold.
If you do it this way you may save around 25% of any payment due to you as opposed to using a claims management company. But upto you…..