Is the end in sight for the PPI mis-selling scandal?
Just when you thought there was nothing more that could rock the payment protection insurance (PPI) scandal, along comes yet another twist in this constantly evolving story.
The possibility of June 2019 PPI deadline has raised fresh concerns that some people could miss out on PPI compensation. With so many changes, it can be hard to keep up. So, with a deadline looming, how up to date are you with PPI facts?
Why is the PPI deadline being introduced?
The PPI mis-selling saga has been dragging on for years. Just as you think it is about to die a death, something comes along to re-ignite the flame.
The total bill could top £37 billion by the time the deadline rolls around but it could be lower, if people don’t reclaim the money they are entitled to.
When did the PPI mis-selling saga actually begin?
PPI is a product that was sold alongside credit cards, mortgages, loans and so on since the 1990s. The concept is simple: if you fell ill or lost your job, the PPI policy should have covered the repayments on the loan.
In 2005, the Citizen’s Advice Bureau lodged a super-complaint with the competition watchdogs and the PPI mis-selling saga as we know it today started to bear fruit. In some descriptions from reports and reviews at the time, the wholescale mis-selling of PPI was described as a “protection racket” in which banks were making gargantuan profits at the expense of customers, and portraying the image that there was nothing that could be done about it.
This was the catalyst that started the ball rolling for PPI compensation, a process that started in earnest in 2011. With the proposed PPI deadline of June 2019, that is nearly eight years of compensation claiming by customers across the UK.
How many customers are affected by the mis-sale of PPI?
The predecessor to the modern day regulator the Financial Conduct Authority (FCA), the Financial Services Authority told Parliament that they believed 53 million policies had been sold. Of the 45 million policies sold by banks, worth an estimated £44 billion, it was unclear how many policies had been mis-sold.
An estimate at the time suggested 3 million customers were affected but at the time of writing, 12 million have claimed back £24 billion in PPI compensation.
And that figure looks set to rise.
Is the June 2019 PPI deadline the same for all customers?
Around 5.5 million customers could be facing an earlier cut-off date after letters were sent out by banks in 2013 inviting them to make a claim for PPI compensation. The three-year window on these ‘PPI invitations’ looks set to close this year.
Can I claim PPI compensation?
It is a possibility but you won’t know until you talk to us. Call Payment Protection Scotland today.