Guest Post: You Must Claim PPI before August 2019

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There are under five months left for consumers to reclaim Payment Protection Insurance (PPI). 29th August 2019 is the official cut-off date for all people to submit PPI claims to their banks. This date was chosen by the Financial Conduct Authority (FCA) to encourage those who have not yet made claims to do so.

Since the announcement of the deadline nearly two years ago, thousands of people have made successful PPI claims. With the deadline approaching, if you haven’t yet submitted a claim, you must act now before August.

Do You Have a PPI policy?

The first thing to establish is whether you had a PPI policy. Most PPI policies were sold in the 1990s alongside mortgages, loans and credit cards, but some successful cases date back to the 1980s. As a general rule, the older the policy, the harder it can be to prove you were mis-sold PPI.

You may remember being mis-sold a policy. If this is the case, you will need to find the old paperwork with evidence of this. If you can’t remember whether you had a policy, old statements and documents should be able to highlight if this is the case.

On the paperwork, PPI may be listed under a few different names. Here are just a selection of the other names for PPI (this list is not exhaustive):

• Accident, Sickness and Unemployment (ASU)
• Account cover
• Loan protection
• Payment cover

If you can’t remember whether you had a PPI policy or you can’t locate the paperwork, there are a couple of ways to find out. You can either contact the bank or lender and ask if they have a record of any PPI policies attached to your previous accounts, or you can use the services of a PPI claims company.

There is no guarantee that the bank will have a record of previous PPI policies, but if they do confirm a policy, you can then submit a PPI claim. Alternatively, a claims company can investigate any old accounts and seek to identify policies on your behalf.

Claim PPI before August

Once you find evidence of your PPI policy, it’s time to make a claim. Again, there are two different ways to submit a PPI claim. You can make a claim yourself by contacting the bank or lender that mis-sold you the policy or ask a reputable PPI claims company to do it for you.

Whether you submit a claim yourself or use a PPI claims company, you must explain how the policy was mis-sold to you. Here are just a few ways that policies were mis-sold to customers:

• You were told it was compulsory with your credit card, loan or mortgage purchase
• You weren’t told about the policy — it was added automatically and without your knowledge and consent
• The terms and conditions were not explained — this includes not being asked about medical conditions and employment
• You were promised a lower price if you bought the PPI policy

If any of these apply to you, you could be eligible for a refund. You may also be eligible for a refund if you were charged a high level of commission. Due to a landmark PPI case, individuals can claim PPI if a policy had over 50% commission and this was not disclosed — even if you knowingly bought a PPI policy. This is known as the Plevin rule and means thousands’ more people can make PPI claims.

Some banks allow you to claim PPI online by submitting a form (though you may need to also send evidence with your application). For others, you will need to write a letter and complete any relevant paperwork. Once the bank has acknowledged your claim, it should respond with an outcome within eight weeks. However, be aware that some cases can take longer, especially if they’re older or more complex.

The alternative option is to use the services of a PPI claims company. Some essential details will be required for them to act on your behalf, but they will handle all communication with the bank. If you don’t have the time or don’t want to deal with the process yourself, it can be beneficial using a claims company. Always check the fees involved and read the terms and conditions.

What if Your Claim Is Rejected?

If your claim is successful, you’ll receive notification from the bank and receive the payment shortly afterwards. If, however, the bank rejects your claim, but you think that the decision is wrong, you can refer it to the Financial Ombudsman Service (FOS). The FOS will independently review your PPI case and either uphold the decision made by the bank or decide that you are due the PPI refund. It’s important to be aware that PPI claims at the FOS can take up to two years to be resolved due to a severe backlog.

Whether you remember having PPI or not, now is the time to check. In four months, you will no longer have the chance to reclaim PPI. Act now before it’s too late.

Disclosure: This is a sponsored guest post on behalf of Canary Claims.