When Is The PPI Claim Deadline?

Published: 13/08/2018

This time next year, there will only be a few days left to lodge your complaint about potentially mis-sold PPI. That’s right - the deadline is looming!

Now is the time to check if you had PPI... and don’t forget - even if you have checked previously, it’s very possible that something was missed or that the banks wrongly rejected your claim (they did that a lot).

To be precise - from 29 August, you only have one year left to claim for your mis-sold payment protection insurance. One year may seem like tonnes of time, but trust us… it’s not. As the deadline draws closer, and more and more people lodge claims at the last minute, the systems are likely to become overwhelmed and it could be 2020 before you see any money back.

Now we understand that you’ve probably heard the term PPI countless times and you’re totally fed up with it. Sure, we get it. In fact, however, there is not much to say about the matter apart from this - tens of thousands of UK consumers were mis-sold PPI in various ways. This is wrong. You can claim that money back. It’s your right. End of story.

For the sake of being comprehensive though, let’s recap a few key facts about PPI that might help you decide whether you need to lodge a claim.

What is PPI?

PPI was an insurance policy sold to customers taking out loans, credit cards, catalogue accounts, overdrafts, car finance and more to cover the repayments for a year in the case of an accident, sickness or unemployment.

PPI in itself was not a bad policy to take out. However, it was ‘mis-sold’ to thousands of people. It remains the most complained-about financial product of all time.

There are many ways banks and lenders mis-sold PPI (that stands for Payment Protection Insurance) to their customers.

How many people were mis-sold PPI?

A lot! It’s impossible to say exactly how many. What we do know is payment protection insurance is now recognised as to be the biggest mis-selling scandal of all time with approximately 64 million policies mis-sold by lenders since 2001. Banks have set aside close to £20 billion to cover the cost of mis-sold PPI claims and there is now speculation that lenders have been short changing PPI clients and even hiding PPI policies.

How was PPI mis-sold?

Many ways. Some common methods included:

• If you were told taking out PPI was compulsory. It absolutely wasn’t! Your advisor must (should) have made it clear to you that PPI was an optional cover.
• If you were not told about any significant exclusions under the policy. For example, many policies would not cover people with a pre-existing medical condition.
• Did your advisor tell you when you took out a loan or finance agreement that you’d have to pay for the insurance upfront and that the cost would be added to the loan and incur interest? If not and that was how the policy was structured, they may have mis-sold that policy to you!
• Single premium insurance normally lasts for just five years. If your loan or finance agreement was for a longer period than this, and the advisor didn’t make clear to you that the insurance would run out before you finished paying off your loan and that you would continue paying interest on the insurance.
• The advisor used persuasive terminology such as, ‘we strongly recommend you consider taking out PPI’, you have grounds for a PPI complaint.
• If you were not informed that your provider earned a high level of commission from your PPI, you can complain.
• If you were self-employed, unemployed or retired, PPI probably wasn’t a suitable product for you.
• You didn’t know you had PPI in the first place. Many people had it added on to the financial product without any proper explanation, so it’s possible you have no idea about it!

How far back can a PPI claim go?

If the account is now closed, your PPI claim can be made within six years. If the account is still open, there is no time limit.

Where could I have PPI?

PPIwas often taken out when acquiring a loan, mortgage, credit card, store card, car finance and more. It’s possible that you took out PPI without even realising.

What are the benefits of claiming PPI?

If it’s discovered you had mis-sold PPI, you could be looking at a refund of hundreds or even tens of thousands, depending on your individual circumstances. It’s also fair and just - you deserve those funds back if you were unethically sold a financial product!

When is the PPI deadline?

The deadline for making a PPI claim is August 29 2019 – make sure you mark the date and claim sooner rather than later.

Does a solicitor need to claim on my behalf?

No, you can lodge a complaint with your bank or lender yourself. However, given the deadline is looming, this will most likely be a time-consuming and stressful.

The benefit of using an experienced and qualified financial claims solicitor's firm is that a trained professional will do everything for you!

How to spend your PPI Payout

1. Take a holiday

   We don’t know about you but surprising your significant other with a much needed city break sounds like the perfect idea! You could also save the money and use it for extra spending money for your holiday next year. The possibilities are endless.

2. Pay off debts

   Do something sensible with the money and pay off some of those looming bills for the month.

3. Spend it on your family

   Family time is the best time. You could use it towards your childrens house deposit, or just helping your family members out with some extra cash. (Read our article - How To Help Your Children Buy A House)

4. Fund home improvements

   It’s time to stop putting off those home improvements. With your PPI compensation you can use your PPI refund to have some essential home maintence.

5. Christmas Presents

   Now we know it maybe far too early to be talking about Christmas but a payout could cover the cost of present, decorations and food!

Think about what you could do with that money - do you really want to wait two years?!

What our clients say - PPI reviews

• Miss McMenamin:

  “Received excellent customer service”

• Mrs Kirk:

  “Excellend service professional attitude helpful staff.”

• Mr Parker:

  “Service was truly excellent. I dealt with Lesley Chapman throughout the period of the claim, who is an extremely efficient, charming person to talk to.”

• Mr Fogarty:

  “Very good service. I knew I always had PPI but was told by a friend to apply anyway. GW found payments I hadn’t even thought about.”

Who are GWlegal?

GWlegal are a financial claims solicitors based in Liverpool, specialising in PPI, pay day loan claims, packaged bank account claims and housing disrepair claims.

If you have a legal matter you wish to discuss don’t hesitate to get in touch. You can call us on 0345 373 3737 or email us at hello@gw.legal with your question.

Who are GWlegal? We’re a national firm with local values.

How Do I Make A PPI Claim?

Content correct at time of publication.