PPI? Surely that’s all over and done with – and anyway isn’t the deadline for claims in just a few weeks?
You can hear questions like this on a daily basis, but the only part that’s true is that the PPI claims deadline will kick in on August 29th – just over 100 days away.
The reality is that the banks have made provision for hundreds of thousands of new claims to be made in these remaining few weeks, setting aside millions of pounds to pay out on successful complaints.
Lloyds Banking Group – who have already paid more compensation than any other financial institution in the country – has just set aside another £100 million because they are still receiving 13,000 new complaints a week, more than 50,000 a month. Other banks are also receiving thousands of new claims a week.
Where have they come from?
But if PPI is all over and done with, where are these new claims coming from?
Well, part of the reason is the multi-million pound consumer awareness campaign being run by the Financial Conduct Authority (FCA) in which an animatronic Arnie Schwarzenegger ‘Terminator’ urges anyone who hasn’t made a claim so far to do so before the deadline removes the right forever.
Do It Now!
In a series of different adverts the character demands that consumers ‘Do It Now!’ if they think they may have been mis-sold PPI in the past.
The FCA made it a condition of allowing the deadline to be placed that consumers be warned they had to make a claim before it was too late.
Since the campaign began many people have taken the advice and entered successful claims for which the average compensation of around £1,600 (prior to fees and taxes).
But for some the payout has been much higher. In April Gladstone Brookes’ most successful client was a man who received £110,966.59± from claims against Barclaycard,
Barclays Bank and House Of Fraser for PPI mis-sold on a store card. The compensation paid to all 20 totalled more than £716,400±
A long time ago
For many consumers the point at which they were mis-sold PPI is a long time ago and they may not recall the details three decades later.
But even if you don’t have any paperwork to prove it you can still ask the bank if any agreement you held with them had PPI attached and they must tell you. Once you’re aware of the facts then you can make a decision on what to do next.
How was PPI mis-sold?
Payment protection insurance (PPI) was essentially a good product, designed to help you pay the premiums on any financial agreement if you came out of work through accident, sickness or unemployment.
But it was mis-sold on an industrial scale to people who didn’t want it, didn’t need it and could never have made a valid claim if the needed to.
If you took out a loan, credit card, mortgage, store card or catalogue account, you could have been mis-sold PPI if you experienced any of the following:
- You were pressured into buying PPI or told you must have PPI
- You were promised a cheaper rate if you bought PPI
- You were already covered by another policy
- You received full sick pay from your employer
- You were told your loan or credit application was more likely to be accepted if you bought PPI
- You were advised to buy PPI that did not suit your circumstances or needs
- You were self-employed, unemployed or retired but advised to buy PPI
- You had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
- You were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
- It was not made clear that you would pay interest on the PPI if it was added to your loan
- It was not made clear that the PPI would end before the loan or credit was repaid
- The amount of commission paid on the sale was not revealed at the time
There is one other way PPI was ‘mis-sold’ – unscrupulous sales people added it to your agreement without telling you – and if that happened you definitely wouldn’t know now either so it’s worth checking things out.