British banks and credit card providers have been compensating customers for years for the misselling of PPI. In 2014, it was reported that Lloyds, as well as many other banks, had increased the amount set aside for refunding customers.
To date, the total amount paid out by the banks is in excess of £27 billion.
Now is the time to find the best PPI company or contact your bank to make your PPI claim. Why? Because the Financial Conduct Authority (FCA) has set a deadline of 29th August 2019 for making claims. The aim of the deadline is to “flush out the remaining complaints.”
Here is some information about PPI and the upcoming deadline, as well as how to make a claim.
Why Should You Make a Claim?
Customers were sold PPI with products such as mortgages, credit cards and loans, but a lot of people never knew about it. Banks often implied that they had to buy PPI with a product or overemphasised the benefits. In a few cases, customers weren’t even aware that it was added onto their bill.
All those who have taken out loans, credit cards or mortgages should check if they are owed money. Paperwork will indicate if PPI was added. However, even without paperwork, customers are still able to find out. A trusted PPI claims company will be able to trace paperwork and discover if PPI was sold on a product.
Making a claim can be worthwhile, as the average payout is £3,000. This is an approximate gross figure. You may be liable to income tax on the statutory 8% interest that the banks have to pay, or fees if you use the services of a claims management company.
Contacting Your Bank
If you don’t have the time to contact your bank, a PPI claims company will be able to do this for you. Some banks have been actively trying to contact customers who they believe are owed money. Yet, other banks are not so forthcoming with information about how to make a claim.
A claims company will be happy to handle all communication for you and have experience with PPI cases. Whether you opt to work with a PPI claims company or contact the bank directly, a claim can still take a number of months to be resolved.
What is ‘PPI No Win No Fee’?
This is a term you may have heard from PPI claims companies. If you are not successful with your PPI claim, you won’t have to pay any money. If you use a reputable PPI claims company, they will work on a no win no fee basis.
There may be additional fees for sourcing paperwork, but if your claim is unsuccessful, they will not require you to pay.
Why You Should Make a Claim Right Now
Making a claim can take months or even years if the case is referred to the financial ombudsman. Although the deadline is over two years away, it’s important to get the process started now. The FCA intends to launch an official campaign to promote the deadline, starting in August 2017.
This is likely to cause an influx of people making claims, so starting your claim now means you will be ahead of the game.