The Payment Protection Insurance (PPI) scandal has cost banks billions in compensation payouts.
However, with over £200million paid out every month and a deadline for refunds approaching, now is the time to check if you’re eligible for a payout.
PPI is an insurance product sold alongside credit cards, loans and many other finance agreements. It’s meant to ensure that payments are made if the borrower is unable to due to sickness or unemployment.
Just 12 million people have claimed, despite 64 million policies being sold – meaning many more are likely to be able to claim.
If you think you’ve been mis-sold you can reclaim for free, but don’t delay. The reclaim system is likely to get jammed up now a final deadline’s in place, so act now.
The average sum paid out in compensation is between £2,000 and £3,000. The total amount paid out since January 2011 is £28.2billion, according to the Financial Conduct Authority (FCA).
However, the FCA has set a deadline of August 29, 2019, for all claims to be made, so act now.
New rules mean that you can also claim if the bank earned a high level of commission from selling you PPI but didn’t tell you that. You can complain even if you had a previous PPI mis-selling complaint rejected.
Which? advises that you deal with the firm involved directly or use free claims tools, not costly claims management companies.
Have you been ‘Plevined’?
Since August, banks must also consider a new ruling, known as ‘Plevin’. This is about the amount of commission charged, which means if you’ve ever had PPI, you were likely mis-sold.
MoneySavingExpert.com founder Martin Lewis said: “The big question now is… have you been Plevined? This new form of PPI mis-selling turns the whole thing on its head.
“Until now, you were usually only due money back from PPI if the firm had either given you an inappropriate policy, such as employment cover for the self-employed, or lied to you, like saying PPI was compulsory.
“Yet with Plevin, in most cases it’s simply a case of ‘Did you have PPI? Then you are owed money”.