Is There a Lot of Confusion About PPI?
PPI is a saga that has been running for many years now. With the August 2019 deadline looking like it is holding firm, there are thousands of people who are yet to make a claim for PPI compensation.
Why are some people still confused and unsure about claiming PPI?
#1 They don’t know they have PPI
It is a simple reason but there could be – and there are! – thousands of customers who are not making a claim for PPI compensation because they don’t know they have a claim to make.
Some people say that it is the responsibility of the banks and credit card providers to get a move on and contact all these customers, telling them they have PPI and that they have a claim.
Why can’t PPI compensation be automatic? Essentially, how much you can claim back varies from one person to another. But not only that, consumer law stipulates that to claim compensation it is the customer’s responsibility to not only complain about a product but to also prove that they have a case for mis-selling and thus, compensation.
The Financial Conduct Authority listed as one of the reasons why they were imposing a PPI deadline of August 2019 that they were doing to so deal with consumer apathy in relation to PPI.
In some ways, they may be right. The PPI mis-selling saga reared its head in the mid-1990s but it wasn’t until the start of 2001 that the first compensation claims started to be made. This is a long time for a problem to be in the public eye and without a deadline, argue the FCA, the PPI saga could drag on for another decade.
We have to face it, not everyone wants or is willing to claim compensation. There is no research or studies that tell us why but there are a few reasons we can guess at:
- People are unsure how it will affect their credit rating
- People are worried it will make their arrears and/or debt worse
- They really are not bothered because they will not get much money back…
#4 Too good to be true
And finally, there is a concern that with some of the fantastic good luck stories of people claiming thousands of pounds in PPI compensation is its own worst enemy. People read these stories and think that this streak of good luck only happens to other people, not realising that the car finance has PPI on it, the second mortgage and the personal loan they took out a few years ago all have PPI on them – and they too, are sitting on a small fortune that is THEIR MONEY!
Why not find out if you have PPI and how much you could claim back? Talking to your team will cost you nothing but you could have everything to gain.