The PPI deadline is probably not on your mind with Christmas now just days away. But after Christmas, there are only eight months until the PPI deadline. Arnold Schwarzenegger’s robotic head has been on our screens for nearly a year and a half telling us to make a decision about making a claim.
The Financial Conduct Authority (FCA) set 29th August 2019 as the official cut-off date for making a PPI claim to your relevant bank or lender. Since the announcement of the deadline, thousands of people have made successful claims and received payouts from the bank. The average PPI claimant receives £1,700 — an amount that could be hugely beneficial to households after Christmas.
The FCA has promoted the deadline on the television, radio and billboards across the UK. According to its latest report, over 35,000 people have contacted the PPI helpline. The advertising campaign is impacting consumers as they look to find out if they are owed PPI. However, it’s believed that there is still much more money to be refunded. With the clock ticking until August 2019, individuals will need to act soon to ensure they receive their refund.
Why Make a PPI Claim?
To date, the banks have paid consumers over £32 billion for mis-sold PPI policies. Some claimants have received thousands of pounds in compensation after finding multiple PPI policies. With approximately 64 million PPI policies sold in the UK, it’s likely that many individuals had more than one.
If you need to check how to make a PPI claim, you can do it yourself or use a PPI claims company, which will do so on your behalf. When searching for a company, find one with a low service fee and that operates on a no-win, no-fee basis. New regulations mean that companies cannot charge more than 20% + VAT (24% total) on successful PPI claims. However, some companies do charge below this threshold, meaning you will keep more of your money in the event of a successful claim.
What Will Happen after the Deadline?
If you find old paperwork after 29th August, you won’t be able to claim PPI — even if it was mis-sold. This is why it’s so important to act now. If you submit your claim before the deadline but don’t receive a result until afterward, the bank will continue to work to resolve your claim. You may be waiting a couple of months after the deadline to receive an outcome if the bank is particularly busy handling claims.
If your claim is rejected and you want to refer it to the Financial Ombudsman Service (FOS), you can do so even after the deadline. However, taking your case to the FOS will result in more waiting as it seeks to resolve its backlog of PPI claims as soon as possible.
There is speculation that after PPI claims come to an end, another type of claim will emerge. Payday loan claims have increased recently, while claims about pensions could also take centre stage. With any luck, consumers will have a break from cold calls and no-win, no-fee PPI claims company advertisements.
In the meantime, if you haven’t yet made your claim, start now. The first step is to find any old financial paperwork. But even if you don’t have this, it’s possible to make a successful claim — it really can be easy once you start the process.
So whether you decide to work with a PPI claims company or do the legwork yourself, start your claim today — or put it at the top of your to-do list for when the Christmas festivities are over!