If you’ve made a PPI claim, you likely want to know how long it will take to be settled at the bank. Here, we reveal all.
Just ten months remain until the PPI deadline. That means if you haven’t yet started your claim, you should do so as soon as possible. Lloyds Bank is currently receiving 13,000 claims per week and this isn’t expected to let up. The sooner you start, the sooner you will be able to get an outcome, hopefully resulting in a refund.
The average refund amount is £1,700 — that money could go a long way. If you want to make a claim, you may have a lot of questions about the process. A question we hear often from people is “how long does a PPI claim take to settle?”
We will explain how long a claim takes and when you can expect to receive a refund from your bank.
How Long Will My PPI Claim Take?
A PPI claim should be settled within eight weeks. This is the timeframe that banks are given to respond to your claim with an outcome. However, some cases do take longer, especially if they are particularly old or complex. If this is the case, you should receive a letter from the bank or lender.
If you don’t hear from them within eight weeks, contact the bank to chase up your claim and find out when it will be resolved.
If you use the services of a PPI claims company, it will follow up with the bank on your behalf.
Although the response from the bank may take eight weeks, the whole process can take up to six months. If you need to find evidence of PPI before making a claim, the process will take even longer.
How to Make a PPI Claim before the Deadline
If you haven’t yet started your PPI claim, do so now. Follow these simple steps to make your claim:
1. Find the relevant paperwork or ask a company to do it for you
To make a claim, you need to present evidence that you were mis-sold PPI. This will be on paperwork from the time you took out your loan, credit card or mortgage and listed as “PPI” or some other variant, such as “loan cover” or “Accident, Sickness, Unemployment” (ASU). If you have this paperwork lying around in an old drawer somewhere, great. If not, your bank may still have a record of it, so you can contact them to find out. If the bank no longer has a record of your account, a PPI claims company or solicitor can investigate for you. This will always add extra time to the claim, which is why you should start soon.
2. Contact the bank or ask a company to do it for you
Once you have evidence of the mis-sold PPI, you can contact the bank to make a claim. You must state how the PPI was mis-sold to you, whether the PPI was sold with undisclosed high levels of commission (Plevin) or you were told it was compulsory. A claims company can handle this for you and deal with all communication from the bank.
3. Wait for the outcome
As previously mentioned, PPI claims should be settled within eight weeks, but it can take longer. If your claim is rejected, but you believe you have a strong case, you can contact the Financial Ombudsman Service (FOS), which can review your claim and overturn the bank’s decision. However, due to a backlog, cases referred to the FOS can take up to two years to resolve.
Now you know how long PPI claims take to settle, you will understand why you should start as soon as possible. If you begin now, you should receive your money early in 2019, which will be a great way to start the new year!
Curious to know how much you could be due from a claim? Use our online PPI claims calculator to receive an approximate figure of how much you could be owed from the bank.