By Paul Lewis
A new deadline is looming for people wanting to claim compensation for mis-sold PPI (Payment Protection Insurance). Since 2011, the banks have paid out around £27 billion and are still paying out at a rate of £8 million every single day.
Despite these huge totals, barely half of those who had PPI have received redress, so there are still millions who could claim. But the regulator has now agreed a cut-off for new claims – 29 August 2019.
PPI was routinely sold with consumer credit, including loans and car finance, up to 2011. It was supposed to provide insurance so that if you were ill or lost your job the payments on your loan would still be made. But it was often sold to people who had no hope of claiming, or to people who were wrongly told it was compulsory, and who could now be eligible for compensation averaging around £3,000.
If you think you have a claim, don’t be tempted to use a claims management company. The ones that aren’t scams still take around 40 per cent of compensation. It is possible to claim by yourself, but now online complaints site Resolver has teamed up with the website MoneySavingExpert.com to offer a free online service that is proving to be popular, with over 200,000 claims currently being processed.
To get started, go to resolver. co.uk/ppi, but before completing the online form you should think about how you were mis-sold. Were you self-employed, retired or unemployed? Did you have previous medical problems? Were you already covered for by your employer? Did you not even realise you had bought it? There is a list of possible reasons for mis-selling at the Financial Conduct Authority website that may jog your memory – go to fca.org.uk/ppi.
Don’t worry if you no longer have documents or policy numbers. They’re not essential, but if you do have them you can upload them with your claim. Resolver will pass your complaint to the right department at the credit provider. It will also keep all replies in a file you can access. If the claim is rejected, Resolver can pass your file direct to the Financial Ombudsman Service. Resolver takes nothing for all this work. If you get redress, you keep it all.