Don’t get caught by an early PPI deadline

Don’t get caught by an early PPI deadline

Are you one of the millions of people whose PPI deadline is due to run out before the official date of August 29th 2019?

If so, you could have just weeks to make your claim instead of two years, but you may have already been unlucky and your personal deadline is past.

Warning letters

An estimated 5.5 million people have been sent warning letters by their lender advising that if they think they were mis-sold PPI then they should make a claim as soon as possible.

Financial expert Dominic Lindley says the letters were issued between 2013 and 2015 and gave consumers a warning that if they wanted to complain they must do so within three years of the date of the letter.

Weeks or months

He said: “You can’t expect people to recall a letter sent two or three years ago.  Many of the 5.5 million people could have weeks, or months left to complain.

“The information about the earlier deadline is in the FCA’s website, but it is not on the homepage and not referenced in the adverts.”

Not clear

Last October, before full details of the claims deadline were finalised, the Financial Services Consumer Panel said it was not clear that the deadline for some people would be earlier than 2019.

The independent statutory body believes that the warning may already be too late for as many as three million people and time will run out for another 1.2 million before the end of 2017.

Confused

The FCA says it does not believe consumers faced with an earlier deadline would be confused with the way its awareness campaign has been structured, adding that its website had been altered to clarify the point.

A spokesman said: “The message from our campaign is very clear – that people should take action now and not wait until the deadline to decide whether to make a complaint or not.”

How does the deadline work?

It is very simple – your lender must receive your claim for mis-selling before close of business on the deadline date for it to be treated as valid.

For most people this will be August 29th 2019, but if you have received a warning letter from your bank it will be close of business three years from the date of your letter.

Time-barred

Failing to meet the deadline means your claim will be time-barred and your lender will not have to investigate it.

In the case of the earlier deadlines, the only exception will be if you are able to make a claim under the new Plevin regulations regarding payment of commission on the sale.

If you are able to prove the commission paid on the sale of your PPI policy was more than 50% you will be entitled to the difference between the two figures – e.g. if you paid 75% commission you would entitled to a 25% refund of your premium.

Latest figures

The FCA has just announced that a further £262.5 million was paid out in PPI compensation in June, bringing the total since 2011 to £27.7 billion.  The monthly payout figure has been rising since the start of the year, following confirmation of the deadline date.