Have you seen the TV adverts and billboards publicising the PPI deadline?
It’s been nearly two months since the Financial Conduct Authority (FCA) started its promotion of the PPI deadline. While consumers will hastily be making sure their claims are in on time, it’s important to understand what the deadline means.
Although consumers have two years to organise their PPI claims, it’s important to start as soon as possible. The banks will likely be receiving an influx of claims as people check their statements or start their claims. With so much discussion surrounding the debacle, some statements and opinions on the PPI deadline are flying around that are confusing many of us. With that in mind, we’ve taken five of those myths and busted them to ensure you’re aware of the facts on PPI.
The PPI Deadline Benefits Consumers
The FCA claims that the PPI deadline will motivate customers to make a decision about claiming PPI and will bring an end to cold calls. However, consumers will lose out if they haven’t made a claim before August 2019. Although it argues that a two-year promotion campaign will be enough time, it is likely that some people will leave it too late and not receive their money. One claims management company is challenging the deadline, stating that it is “clearly unlawful” and many consumers will miss out.
The PPI Scandal Will End After the Deadline
Although the PPI deadline is set for August 2019, it won’t all finish at the end of August. The Financial Ombudsman (FOS) has a backlog of PPI complaints to deal with. If you refer your PPI claim to the FOS, it might not be resolved until after August 2019. It can be a long process, which is why it’s so important to start your claim as soon as possible.
Everyone Has Already Made a Claim
Consumers have been reclaiming their money following the PPI scandal for nearly ten years, so surely everyone is done by now, right? Why wait two more years for a deadline? Well, not everyone has made a claim. In fact, reports show that a fraction of those who had PPI have made a claim; only one in five, to be exact. Despite hearing about PPI for a number of years, some people are only just acting upon it.
I Can’t Make Another PPI Claim
There are certain new circumstances in which you might be able to make another PPI claim.
If you have previously made a claim and it was rejected, there is now a way that you could make a second claim, thanks to the Plevin ruling.
Martin Lewis asks: “have you been Plevined?” If you were sold PPI but were not made aware that over 50% of it was a commission, this is another form of misselling. If the bank has previously rejected your claim, this new ruling means that you can — and should — try again to see if a commission was added and you are due a refund.
I Can’t Make a Claim Without Paperwork
This is a common misconception. You don’t need to have all the details about your account or even know if PPI was sold to you. This information can still be obtained. All PPI claims without paperwork can still be made within plenty of time before the PPI deadline. Information such as the name on the account, provider and the approximate year in which you took out the product should be enough to make a claim. A claims management company or independent creditor will be able to find out the details for you.