Consumer champion Which? has been warning potential PPI claimants to not miss the claims deadline of August 29th because they feel confused about the whole process.
Their survey of more than 2,000 consumers revealed a widespread lack of knowledge and awareness of how to go about making a claim.
£35.3 billion compensation
Latest figures from the Financial Conduct Authority (FCA) show £35.3 billion in compensation has been paid out since January 2011, but Britain’s banks and credit card companies have set aside another £10 billion to pay out future successful claims.
No-one really knows how many PPI policies have been mis-sold over the years, but with only around 20 million claims being made on an estimated 64 million policies sold there is obvious potential for many more potential mis-selling claims to be made.
But the Which? survey has revealed many people haven’t done so because they’re not sure if they are entitled to compensation as they don’t fully understand either the mis-selling or claiming processes.
Employing nine simple true or false statements researchers found that the majority of people gave the correct answer in just two cases.
Claiming for a deceased relative is possible because the offence of mis-selling is historic and, if due, compensation should be paid to that person’s estate.
However, only 1 in 6 was aware it could be done, 1 in 5 got the question wrong and 2 in 3 said they had no clue.
Mis-leading long forms
Asked if they thought they had to fully complete the long and involved claim forms issued by banks, only 15% got it right when they said it wasn’t necessary and that they only needed to answer what they could.
Half of those questioned admitted they had no idea.
Lack of knowledge
Melissa Massey of Which? said: “Which? is concerned that people entitled to a claim are missing out due to unawareness and the widespread lack of knowledge about how the process works.
“Our research also found that one in five of members of the public had made a successful claim and that one in eight had one or more claims rejected.
But two thirds had never made a claim and these people were more likely to say they didn’t know or respond incorrectly.”
Which? Consumer Rights Editor Eleanor Snow added: “The deadline for claims is rapidly approaching but our research shows that there is still a lot of confusion about the process that might be putting people off.
“Banks have set aside billions of pounds for potential compensation so we urge anyone who thinks they might have been mis-sold PPI to make a general claim.
“Even if you have previously had a claim declined it’s still worth asking your bank to check all of your products as you may still be owed compensation.”
With just weeks to go before the PPI claims deadline on August 29th, the FCA is urging anyone thinking they may have a mis-selling claim to do something about it before time runs out.
Emma Stranack, Deadline Campaign Lead, said: “With just over 10 weeks to go, time is running out to claim back money for PPI.
Simply put, if you haven’t complained to your provider by August 29th you won’t be able to claim money back for PPI – so you should make your decision as soon as possible.
The full list of questions asked in the Which? survey requiring just a true or false answer was:
- If I make a claim for a specific product my lender will automatically check all the other products I had with them
- I can ask my lender to access the personal information they hold on me to check if PPI was sold on any of my products (e.g. mortgage, credit card, loan)
- The claims process requires me to complete every question on the form
- I can make a claim for mis-sold PPI on behalf of a deceased relative
- I can take my claim to the Financial Ombudsman Service (FOS) even if my provider says I can’t
- I cannot make a mis-sold PPI claim if I live overseas
- If FOS has rejected my claim the only thing I can do is go to the small claims court
- I cannot make a claim if my provider has ceased trading
- I can claim back tax automatically taken off the compensation I received for a successful claim