People have been reclaiming PPI for several years now and in August of last year it was estimated that banks had paid out a whopping £24 billion in compensation, with further billions also being set aside for future claims that might be made.
While many people have now reclaimed their mis-sold Payment Protection Insurance money, there are still many who haven’t and according to recent news they may only have a limited time in which to do it, as the FCA have proposed setting a deadline date for when PPI claims must be made.
What is PPI?
While I’m sure most people know by now exactly what PPI is and what the PPI scandal was all about, it is possible that there are still some people out there who don’t. So, for their benefit, let’s just quickly recap. Payment Protection Insurance – otherwise known as PPI – is a perfectly useful bit of insurance that can run alongside a mortgage, loan, credit or store card and can help you to make the repayments on these types of credit if you were to run into financial difficulty – say if you lost your job or had to go on the sick. The scandal wasn’t around the legitimacy of PPI but rather the fact that it was being mis-sold to people who didn’t really want or need it.
Some people were told, for example, that they wouldn’t be able to get a certain loan or mortgage if they didn’t have PPI. This sort of statement was completely untrue, and is a prime case of PPI mis-selling. Another example of mis-selling was when PPI was sold to self-employed people, as the benefits of many PPI policies were inappropriate (or sometimes useless) for those who were self-employed.
What is the Deadline Date?
While it has yet to be confirmed, the Financial Conduct Authority has proposed a June 2019 deadline date for claiming back your mis-sold PPI. They have also stated that they would like this deadline date to be the subject of a public awareness campaign to ensure that everybody who has yet to reclaim their mis-sold PPI is fully aware of the date and so can take the necessary steps to make their claim. PPI claims companies will also be taking a keen interest in the proposed date as this is likely to be a busy time for the industry as they try to get the very last claims in before deadline day hits.
Why impose a deadline?
The PPI issue has been weighing on the balance sheets of banks both big and small for several years now and for the good of the industry, the FCA has decided that the issue needs to be brought to an orderly conclusion. The deadline is a couple of years away yet, so there is still plenty of time for would-be claimants to be able to get their paperwork in order and sort out their claim. The proposed deadline is set to bring the whole PPI scandal to a finish in the not too distant future, though, something the banks will be extremely relieved about.
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