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PPI final countdown: £36bn paid out in 8 years – now just hours left to claim 

PPI final countdown: £36bn paid out in 8 years – now just hours left to claim

  • The final deadline for making a complaint is midnight 29 August
  • Complaints lodged after this date will not be accepted 
  • One third of people plan to wait until deadline to decide whether to make a claim

Families have just over 24 hours left to make a compensation claim for mis-sold PPI before they lose their chance for good.

The final deadline for making a complaint about payment protection insurance (PPI) is midnight tomorrow (August 29).

Complaints lodged with banks and building societies after this date will not be accepted.

One third of people plan to wait until deadline day to decide whether to make a claim

Despite this, one third of people yet to complain plan to wait until deadline day on Thursday to decide whether to make a claim, according to a survey carried out by the Financial Conduct Authority (FCA).

A further quarter said they would leave it until the final few hours.

As the Mail reported last week, all but one of the six High Street banking giants have pledged to keep their phone lines open until midnight to coincide with the PPI deadline — with some pulling in extra staff to cope with soaring numbers of phone calls.

Lloyds Banking Group reported that its call levels have now reached around 190,000 a week, up from 150,000 a week in the three months to June.

Britain’s biggest building society, Nationwide, said it has seen a 66 per cent rise in the number of PPI calls in August compared to mid-June. The mutual has tripled the number of staff in its complaints team in preparation for a last-minute dash.

Over the past nine weeks the FCA says it has seen the number of people using its complaints website jump by 449 per cent. It has also recorded a 689 per cent increase in calls from people requesting more information about how to make a complaint.

In June, £340.4million was paid out to households who complained about the way they were sold PPI. This takes the total amount of compensation paid out since January 2011 to £36billion, according to the City watchdog.

The mis-selling scandal dates back to the 1990s. The insurance policy was designed to cover customers’ mortgages, loans and credit card payments if they were unable to pay through sickness or unemployment.

But many did not want or need the insurance. Others did not even realise they had been sold the policy, with the extra payments just added to their bill without their knowledge.

When the backlog of complaints has been cleared it is forecast that the scandal will have cost the banking industry £44billion in compensation. 

Adam French, consumer rights expert at Which?, says: ‘If you had any kind of credit product, such as a consumer loan, store card, credit card or mortgage up until 2006, when the regulator began imposing fines for PPI mis-selling, you could have been mis-sold PPI.

‘With the PPI deadline just hours away this is the final chance for anyone who thinks they may have been mis-sold to make a claim.’

Banks have eight weeks to respond to your complaint. If your complaint is refused you will still have six months to refer your case to the Financial Ombudsman Service.

There are a host of free template complaint letters available online. Visit thisismoney.co.uk/reclaim-PPI.

Always submit a claim directly to your bank as claims management companies can take as much as 20 per cent of any payout plus VAT.

Visit the Fca.org.uk/ppi or call its helpline on 0800 101 8800 for more information.

s.partington@dailymail.co.uk

 

Read more at DailyMail.co.uk


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