With a rising number of people opting to claim for mis-sold PPI compensation ahead of the deadline in August 2019, Lloyds added an additional £1.15 billion into the mix for PPI claims in 2018. With other banks following suit and setting aside funds to cater for this compensation, could this deadline be streamlining the claims process? Here, we’re taking a closer look at the deadline, what it means for those claiming PPI and how the new ruling has affected the amount of PPI compensation people receive.
PPI Reclaim Deadline Set – 29 August 2019
With the FCA setting the deadline the deadline to claim mis-sold PPI for 29 August 2019 announcing the deadline to claim mis-sold PPI in March 2017, more people than ever before have begun to make a claim. Due to this significant rise, the provision was increased to cover the costs. With more than 11,000 claims being generated each week, Lloyds added an additional £600 million in order to cover the rising costs.
Following the announcement of their annual figures, Lloyds believed that it was necessary to increase the provision yet again. As PPI claims continued to increase and were set to further rise, the bank invested an additional £90 million.
With the deadline drawing closer, the number of new claims continues to rise even further. As a result, the bank introduced a new £460 million provision in order to cover an estimated 13,000 mis-sold PPI claims each week.
What Does The Future Have In Store?
While nothing is set in stone, the bank believes that the expanded provision will keep PPI claims catered for until the deadline in August 2019. Lloyds released a statement explaining that:
“The total amount provided for PPI represents the Group’s best estimate of the likely future cost. However, a number of risks and uncertainties remain including with respect to future volumes. The cost could differ from the Group’s estimates and the assumptions underpinning them and could result in a further provision being required.”
Most PPI Claims Are Successful PPI Claims Yet to be Made
While over 1.2 million claims have already been successful, there are hundreds of thousands more already lined up. However, according to analysts, if the process of making a mis-sold PPI claim is disrupted, then the banking industry may experience yet another influx of claims. With this expected to cost up to an additional £18 billion, the banking industry is under pressure to ensure all cases remain in control, including those under Plevin.
Following the Supreme Court making the decision that consumers were entitled to receive compensation if they were charged unfair levels of commission in 2014, the FCA implemented a new rule for the mis-selling of PPI. This rule stated that consumers were entitled to receive compensation for anything more than half of the commission paid on the sale of a policy regardless of what the policy entailed.
However, when a ruling by Manchester County Count dismissed that figure, the FCA had no choice but to review its counsel on Plevin cases. As a result, the institution requests the banking industry to review how the commission was disclosed beyond the point of sale.
Whether you are unsure if you are eligible for PPI compensation or want to make a claim, get in touch with a member of our friendly expert team on 0800 040 778 to find out how we can help ensure you receive the compensation you deserve, today.