Last summer, the Financial Conduct Authority (FCA), the regulator for financial businesses — including banks and credit providers in the UK — announced the deadline for complaints about Payment Protection Insurance (PPI) for 29 August 2019.
If you have taken out any loans in the past 30 years, you may have been mis-sold PPI, meaning you’ll be entitled to make a claim for a refund.
What Is PPI?
PPI was introduced in the 1980s to cover loan repayments when a customer could not afford to pay their debt due to illness, death, disability or unemployment. Financial products sold with PPI include personal loans, business loans, mortgages and credit cards.
Initially, banks and credit lenders sold the PPI in a fair and just manner, but, upon realising the insurance’s profitability, they then began abusing the insurance. Over 64 million PPI policies were sold to consumers between 1990 to 2011, many of which were sold unethically.
Why Was the FCA PPI Deadline Put in Place?
The deadline was put into place to encourage consumers who are yet to claim their refund to do so, rather than put it off. The deadline also finally brings an end to a scandal that remains one of the biggest to ever hit the British banking industry.
Andrew Bailey, Chief executive of the FCA, said: “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action, rather than put it off. We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint.”
Since 2011, over £30 billion has been paid to customers and Britain’s biggest banks – HSBC, Lloyds, Barclays, Santander and RBS – have set aside a combined £22 billion to compensate customers.
To create awareness of the deadline, the FCA also announced a £42 million advertising campaign, spearheaded by Austrian actor Arnold Schwarzenegger, to be funded by the banks.
The Argument for and against the FCA PPI Deadline
While the Financial Conduct Authority (FCA) thinks setting a deadline will encourage consumers to claim their refund and draw the curtains on the PPI scandal, the move has not been taken well by many.
Some consumers believe that banks should be the ones seeking out consumers who have been mis-sold the policy, rather than expecting them to do the legwork. Some would say that this makes sense, as the banks were at fault. Furthermore, some customers feel the process of making a claim is inadequate, as it can be time-consuming and cause a lot of stress on the consumer’s part. These individuals feel the banks should be working harder to ensure consumers receive their refunds.
Another issue with the deadline is that it seems to be more protective of the banks, rather than the consumers, who are the real victims of the scandal.
Founder of Moneysavingexperts, Martin Lewis, tagged the deadline as a mistake because, according to statistics, banks and credit lenders have proven to be unfair in their handling of consumers’ claims. He says: “in over half of all cases where banks rejected a reclaim, the Ombudsman overturned it and ordered them to pay out.”
Whether the deadline is fair or not, it has been set and consumers must claim their PPI before it is too late — the earlier, the better.
How to Make a PPI Claim before the FCA PPI Deadline
If you have not yet made your PPI claim, now is the best time to do so. If you took out a credit loan, or purchased another financial product, between 1990 and 2010, there is a high probability you were mis-sold PPI and that you are eligible for a refund.
To claim your PPI refund, you need to contact your bank and present evidence of your mis-sold PPI. However, claiming PPI yourself can be quite daunting and tedious, as it involves a lot of paperwork, legal jargon and back and forth with lenders. Instead, many people opt to use the services of a PPI claims management company.
Are you looking to make a claim before the FCA PPI deadline? At Canary Claims, we operate on a no-win, no-fee PPI policy and charge just 15% + VAT (18% total) on successful claims.