Payment Protection Insurance (PPI) Claims Deadline is announced: What it means for you
Stephanie Tam for
PPI was originally designed to cover loan repayments if the policyholder fell ill or lost their job. Yet it became clear that some of the PPI policies were mis-sold to people who did not want or need it, or would not be eligible to claim on it. Currently, bank customers could claim if they were not made aware of commission being paid when they were sold PPI. The Financial Conduct Authority (FCA) decided that compensation will be calculated if commission of more than 50% was paid. However, the FCA announced that individuals seeking compensation over mis-sold PPI will have to make their claims before 29 August 2019. According to the statistics, in over half of all cases where after the bank rejects a PPI reclaim, people take the claim to the independent Financial Ombudsman, the bank’s rejection is overturned. The Financial Ombudsman Service disclosed that it had received 78,000 new PPI complaints in the six months to last December.
After the deadline is announced for making new PPI complaints, Lloyds Banking Group has set aside a further £350 million for mis-sold PPI claims, on top of the £17 billion that has been set aside previously. Royal Bank of Scotland has also set aside £601 million for PPI claims in its recent financial year. It is anticipated that many more people are yet to come forward to make claims.
If you would like specialist advice from one of our Solicitors to support your PPI Claim in light of the announcement, please feel free to contact us on 0121 245 4610.