5 Reasons to Check if You’re Due a PPI Refund
Arnold Schwarzenegger’s robotic head has been on our TV screens and billboards for nearly two years. He is reminding us about the impending PPI claims deadline. The Financial Conduct Authority (FCA) set 29th August 2019 as the official cut-off date for individuals to submit PPI claims to their bank.
No doubt you’ve heard about PPI claims. But, do you know what it means to have a mis-sold policy? Below, we outline why you need to find out more about how to claim PPI and why you should take the time to submit claims.
1. PPI Policies Were Very Common
Payment Protection Insurance, or PPI as it’s more commonly known, is an insurance policy that was sold alongside mortgages, loans, credit cards and store cards during the 1990s.
These policies were widespread and meant that if somebody could no longer pay their credit, the insurance would cover repayments. For certain people, this was useful.
However, the banks realised that they could make a good profit from such policies, so they told employees to sell them even in circumstances where the individual didn’t want or need them. You honestly could have been unknowingly paying for a PPI policy — which is why it’s important to check. Over 60 million policies were sold in the UK. It’s not known how many of these were mis-sold, but it could be a large number.
2. The Average Claimant Receives over £2,000
In 2018, the average PPI claim resulted in a £2,004 payout to the individual. This amount of money can go a long way. Whether you need a holiday or are working towards saving for a house, £2,000 is a significant sum. Although there is no guarantee that you’ll receive this much as a result of a PPI claim, any money you didn’t have before is a bonus. Some people had multiple PPI policies — meaning they’ve received more than the average claimant.
3. Making a Claim is Free
Did you know that claiming PPI is free? This means you have nothing to lose by making a claim. You can either submit a PPI claim yourself by contacting the bank or ask a reputable and trustworthy PPI claims company to file a claim on your behalf. A claims company will do all the work for you but will take a small percentage of any award. Always check the fees and terms and conditions before working with any claims company.
4. Mis-Selling Techniques Were Vast
It’s believed that thousands, if not millions, of PPI policies were mis-sold to customers — in a variety of different ways. Some of the most common techniques were:
- Adding PPI automatically to financial products
- Telling the customer PPI would improve their chances of gaining credit
- Not informing customers about the full terms and conditions, in regards to employment and health
- Stating PPI was compulsory
You can also submit a PPI claim if you bought a policy but were unaware of high levels of commission. This is also known as the “Plevin rule.” It was common for the banks to have 67% commission on PPI policies when they were sold, and you can receive a refund for anything above 50%. This new rule means that most people are eligible for a refund if they had a policy.
5. Just Four Months to Claim PPI
The clock is ticking to claim PPI as 29th August draws nearer. The banks are busy handling thousands of claims so the sooner you start, the sooner you can find out if you’re due a refund and receive the money from the bank.
If you’re not sure where to start with making a claim, you should find your financial paperwork from previous products. If you can’t find this, you can contact the bank or a PPI claims company. If you identify an old PPI policy, a refund could be coming your way shortly. Act soon to make sure you don’t miss out before the FCA PPI deadline.