Terminator Arnie Schwarzenegger is back with a new warning about the PPI claims deadline.
Following emergency heart surgery last week, the Hollywood star is about to burst back onto British TV screens with a second warning to consumers that they must make any claim for potentially mis-sold PPI before April 29th next year.
Lose the right
Anyone failing to make their claim before that date will lose the right to do so forever.
The Financial Conduct Authority (FCA) finalised the deadline date in August last year and produced the first consumer awareness advert featuring the Terminator star using people considering making a claim to ‘Do It Now!’
Now he’s back to ram home the message in a new advert in which his animatronic head is seen peering out of an elderly woman’s shopping trolley as he urges passengers at a bus stop to make their PPI claims before the deadline.
The advert is also expected to feature on radio, social media, video on demand and outdoor advertising, including bus stops.
FCA chief executive Andrew Bailey said: “We know that PPI was sold on a huge variety of credit products throughout the 1990s and 2000s, but many people just don’t realise they had it.
“We want people to act before the deadline. Dig out that old paperwork, visit our website or call our helpline to find out how to check if you had PPI and how to decide whether to complain.’
The latest advert is designed to highlight the many types of product PPI was mis-sold with. As well as the obvious loans and credit cards there are also mortgages, car finance, catalogue credit and store cards.
It was widely mis-sold from as far back as the 1990s, but because of the way it was sold many people don’t realise they have it and could be due compensation.
Though no-one is actually certain of how many policies were sold, the FCA estimates it was around 64 million.
Megan Butler, director of supervision at the FCA, said: “This is industrialised mis-selling. As far as we can tell there are likely to be millions of people who may be owed thousands of pounds.
“The problem is that this was mis-sold on an industrial scale. People didn’t realise they were buying it. People were told they would only get a credit card if they ticked the box for PPI alongside it. It was mis-sold on a quite astonishing scale.”
There has been a surge of new claims since the deadline was first announced. The FCA said they were up by 24% in the first six months.
Banks have also been adjusting their estimate of the number of claims they are likely to receive. According to their own figures, Lloyds believed they might receive as many as 9,000 new claims a week. They were initially hit with 14,000 which has since dropped down to 11,000, still 2,000 a week above their estimate.
The rise in numbers has forced some banks to reconsider the size of their PPI provision. HSBC added £840 million in 2017 and Lloyds added £600 million in February to take their overall allocation to £18.6 billion.
The total paid out to successful claimants so far since January 2011 is £29.6 billion. The New City Agenda think tank estimates the industry has set aside a total of £44.2 billion, but commentators are starting to suggest the final figure could top £100 billion once interest and administrative costs have been factored in.