In the ’90s, lenders exploited their unsuspecting clients by mis-selling PPI (payment protection insurance) while they were seeking financial assistance, such as a mortgage, credit or loan. The lenders purported that PPI would be beneficial if the borrower was unable to repay their loan in case of an illness, employment termination or injuries leading to the loss of income. However, revelations proved that the approach was a scandalous means to inflate lenders’ profits; millions have since decided to reclaim PPI.
As the BBC reports, it is estimated that since the first PPI sale in 1990, there have been over 40 million policy sales in the subsequent years. However, many people are yet to come forward, while others have been frustrated by rejected claims. The process has also been tedious and not precise, and the crafty means employed to include PPI has blindsided many consumers.
The FCA (Financial Conduct Authority) has set August 29, 2019 as the deadline for anyone seeking to reclaim PPI. The deadline means you need to carefully consider your previous policies to see if you need to file a claim before it’s too late. Since most people were unaware, they were being mis-sold PPI at the time, you may not notice it immediately. If you are not sure whether you qualify for a PPI claim, here are a few pointers to help:
• PPI was added to a policy without your knowledge
• You were pressured, or told that you stood a better chance of acceptance if you opted for PPI
• You were told that PPI was a must-have
• You were sold PPI that didn’t match your situation
• If you were not told that PPI inclusion meant you would be paying interest
• You were retired, unemployed or self-employed at the time
The Plevin ruling
Although you may feel that your PPI claim will bear no fruits as you don’t know whether it was mis-sold, now you have another chance to make a claim. This is following the FCA’s inclusion of the Plevin rule that changes the PPI claim dynamics. The addition was driven by the revelation that lenders earned a hefty amount from the policy inclusion. It is said that a whopping 67% commission was paid on PPI, and if more than 50% of your payments went towards commission, you automatically qualify for a PPI claim.
If you make a claim and it gets rejected, you should not stop there. Go to the Financial Ombudsman Service and get a re-evaluation to determine your chances. Moreover, with the Plevin ruling, you’re more likely to qualify for a claim automatically. Banks and lenders are fined if they fail to respond to your claim efficiently, meaning that you should not be intimidated.
Ultimately, your claim could result in the compensation of your premiums plus any interest. Banks and lenders have now set up funds to finance the claims that are estimated to be worth billions. With a set deadline, more consumers are likely to follow up and make claims rather than putting it off.