FCA (Financial Conduct Authority) has announced a deadline of 2019 for all the consumers to filePPI claims. FCA is spending £42m on a consumer communication campaign to make people aware of mis-sold PPI (Payment Protection Insurance) and eventually file PPI claims. This ad campaign will surely have an impact on the consumers and this will increase the number of PPI claims.
What is PPI?
PPI (Payment Protection Insurance) is an insurance product sold to consumers when they have opted for loans, credit cards, and other financial products. PPI was meant for helping the consumers to repay their credit amount under circumstances such as job loss, sickness or disability.
What is mis-sold PPI?
A lot of PPI policies were sold to consumers without giving them proper information.
- Many consumers were not told that the PPI policies were optional.
- In many cases, consumers were sold single-premium insurance which lasts for only five years to support a loan which lasts for more number of years. In such cases, the PPI gets exhausted long before the loan or the financial agreement. If the financial advisor never told a consumer that they would keep paying interest for the PPI Policy even after the PPI expired.
- If the PPI provider took a high commission from the PPI policy without informing the borrower.
Who can file for PPI claims?
Any consumer who feels that he/she was mis-sold PPI, can complaint against the company and file for PPI claims.
Till when consumers can file for PPI claims?
The FCA has announced a deadline of August 29, 2019, for all the consumers to file PPI claims. People whose complaint for PPI claims was rejected before can also reclaim PPI under the new rules set by the FCA.
How to file PPI claims?
You can file your PPI claims directly through your PPI providers. And, you can also go via Claims Management Companies (CMC) to make PPI claims in exchange for a fee.