The end of PPI pay-outs?
Absolutely not! Back in August 2014, rumours began to swirl that the PPI compensation saga could be coming to an end, with a sudden drop in pay outs during 2012 and 2013.
But, this supposed drop what not what people thought; some assumed it was because the 34 million policyholders of PPI had all made their claims… but it seemed the situation was far more complex than that.
Re-opening old cases
In fact, one of the issues that came to light was that 2.5 million PPI cases, already resolved with customers in receipt of compensation, will have their cases re-examined. The reason why is that many banks, lenders and other financial institutions have under-compensated their customers.
This ‘fobbing off’ and short-changing is customers has to stop, according the industry watchdog, the Financial Conduct Authority (FCA). These complaints were cases that were submitted and ‘resolved in 2012-2013 and, if you think your case could be one of them, then you can either contact the lender direct or work with Payment Protection Scotland.
‘High risk’ customers
Added on to this, are the 2 million ‘high risk’ customers as they have been called by the FCA; these people are customers who are highly likely to have been mis-sold PPI but have yet to make a claim. In some cases, it could be that a customer is not aware they have a claim as they are not aware they have PPI.
As a result, all banks, lenders and financial companies across the UK have been instructed to write to these customers, clearly telling them that they have a potentially eligible claim for PPI compensation.
Once the customer receives this letter, they have 3 years within which to act; some customers have already been contacted and, acting on these letters, have been in pursuit of a fairly decent compensation cheque, some up to £2,000.
The latter end of 2012 and the beginning of 2013 saw a dip in the number of cases that banks were compensating; they were rejecting 4 out of 10 cases which, up until this point has been a 1 in 10 rejection rate.
Concerned, the FCA investigated this slump finding that not all customers were being treated fairly. This twist in the compensation saga has done nothing for trust that customers should have in the UK banking industry, something that the FCA is working hard to restore.
Don’t wait for a letter – start your claim today!
Claiming compensation need not be complicated and, with help from a reputable claim management company such as Payment Protection Scotland, you too could be enjoying the delights of a welcome compensation windfall!