Facts About Claiming PPI Compensation in 2016

There are all kinds of myths that circulate about claiming compensation for mis-sold payment protection insurance (PPI). Here at Payment Protection Scotland, we don’t deal in myths but in facts – and here we have collated a few to help you in your quest for PPI compensation.

I. There is a deadline looming…

There is a very real possibility that there could be a deadline imposed on PPI compensation claims. The Financial Conduct Authority (FCA) is taking a more conciliatory tone with banks and financial institutions, who have long campaigned for a deadline to be imposed for PPI claims.

The FCA are currently consulting on the option, with no announcement expected to the spring of 2016, at the earliest. The deadline, many predict, will be summer 2018 but until the FCA makes its announcement, nobody knows for certain.

II. There is a time limit on making a claim

If the bank or lender has written to you, suggesting you may have been mis-sold PPI, you have three years from the date of the letter within time to make a claim for compensation.

Some banks will also tell you that the account will need to have been active within the last six years; in other words, you made a payment or used the account at some point. There are cases where customers have claimed their money back on accounts that were closed, or older than six years but, these are more complex cases.

You can claim PPI compensation on an account for the length of time that the account was active.

III. Banks have to deal with claims in a reasonable time frame

When you contact a bank with your claim, they are expected to make some kind of response within eight to twelve weeks. If they don’t, they can be fined.

In most cases, compensation claims are resolved quickly because the mis-sale was obvious. In other cases, it can take far longer.

IV. Compensation claims are becoming more complex

It would seem that in recent months, compensation claims for mis-sold PPI policies are becoming more complex. However, this should not put you off.

It is the Financial Ombudsman Service (FOS), the body that arbitrates on disputes between customers and financial companies, that have noted compensation claims being referred to them are more complex.

Even if your claim is deemed to be complicated, it is no reason to be denied compensation!

V. You can spend your windfall on what you want!

If this sounds appealing, why not contact Payment Protection Scotland today to start your claim for PPI compensation.

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