‘Billions of pounds worth’ of compensation money is at stake because most people in the UK don’t know when the PPI claims deadline is.
‘Have you been mis-sold PPI?’, is something we’ve been hearing
all the time quite a lot over the past few years now – don’t know if you’ve noticed. I have.
Apparently, more than 80 per cent of people in the UK are actually ‘unaware’ they only have just over a year left to claim for that pesky mis-sold PPI before a cut-off date.
Just 12 million people have claimed for PPI out of around 64 million policies sold, the authorities say.
Out of the nearly 900 people asked, most said they had ‘no idea’ when the deadline was. This is despite a £42 million advertising campaign put out by The Financial Conduct Authority (FCA) which began airing around the UK in late August.
Kamran Mirshahi, director of Canary Claims, said:
With the clock ticking ever closer to the deadline, there’s an even greater incentive to make a PPI claim.
PPI claims enquiries quadrupled on August 29, 2017, the day PPI claims deadline was announced. We are approaching the seasonal slowdown for PPI claims, but we do expect this to only last until December.
January should see the typical post-Christmas rush for claims. With the clock ticking ever closer to the deadline, there’s an even greater incentive to make a PPI claim.
The official deadline for making a PPI claim is August 29, 2019.
The FCA have created the time limit to draw a line under what has been called the ‘biggest financial mis-selling scandal ever to occur in the UK’ and to prompt people to make a claim.
PPI was designed to cover repayments of loans, credit cards, car financing and other products in the event of illness, injury, redundancy or even death.
But it turned out it was forced on many people, who felt they had no option but to agree to it when opening a new account.
Banks and other financial institutions made billions in fees that they are now paying back to customers.
A total of £28.5 billion has been paid out since January 2011 by those responsible for mis-sold PPI and they have set aside billions more to cover future refunds and compensation.
The FCA and its advertising agencies brought in Hollywood actor Arnold Schwarzenegger to front its multi million-pound awareness campaign. Successful PPI claims average just under £3,000.
The Canary Claims survey showed that only 16 per cent of the respondents knew the date of the PPI claims deadline. The majority of respondents had “no idea” and the rest gave an incorrect date.
According to Mirshahi, experts believe more people will start claiming back PPI next year:
It’s our view that 2019 will probably be the year that claims volumes will substantially increase as we approach the August 29 cut-off date.
We expect a significant buildup of new claims. This will affect the banks, the Financial Ombudsman Service and claims management companies. The backlog means a long wait for new claimants.
Due to the volume of claims at financial institutions, a PPI claim can take up to six months, but referring a claim to the Financial Ombudsman can take as long as two years.
Can’t wait for the end of the whole saga to be completely honest with you.