Do it NOW! The Arnie effect sends PPI complaints through the roof. Have you claimed?
The number of complaints over PPI insurance has shot up 40% in just six months, according to the Financial Conduct Authority (FCA).
Between the first and second half of last year, complaints rose to 1.55 million. That’s the highest figure in four years.
The spike coincides with the start of the FCA ad campaign starring Arnold Schwarzenegger.
In a series of ads, he orders people to "do it NOW!"
All complaints about PPI mis-selling have to be filed by 29 August 2019.
"Having set a deadline for PPI complaints, we are encouraging consumers to decide whether they want to claim, and if they do, to make their complaint as soon as possible, as many already have," said Christopher Woolard, executive director of strategy and competition at the FCA.
"We are continuing to monitor and challenge all firms to ensure they maintain the expected standards, and are delivering on their commitments to make it easy for people to complain about PPI."
The FCA said the total amount paid out for PPI mis-selling has now reached a staggering £30bn.
Payment Protection Insurance was sold with credit cards, loans and car finance contracts.
It was designed to protect people if they became ill or unemployed, but in many cases the insurance was unnecessary or inappropriate.
Recent court cases have made it clear that anyone who had PPI should be entitled to compensation.
How to claim for Free!
If you haven’t checked whether you were sold PPI by your bank or lender, now is the time to take action because there’s a deadline for making claims.
Even if you’re unclear how PPI – or payment protection insurance – worked, and have no idea whether you were sold it, checking is easy.
Many people won’t have a clue if they had it, because claims go back to products sold as far back as the 1970s, although most PPI was sold through the nineties and noughties.
The new deadline is 29 August next year, which seems like a way off. But there will undoubtedly be a last-minute rush.
So, make an inquiry. Do it NOW!
Say ‘no’ to claims companies
And, remember, definitely steer clear of any offers by claims management companies to act for you.
You 100% don’t need them and they will take a huge slice of any compensation you make be awarded.
And you may even be billed for work they do on your behalf, even if you aren’t owed any compensation. Check out the horror stories here.
Which products were sold with PPI?
If you’ve had any of the following since the seventies, you could have been mis-sold PPI, and should check:
- loan – this includes personal loans and business loans
- credit card
- store card – this is usually from a high street store
- catalogue credit
- loan secured on your home in addition to your mortgage
- car finance or something else bought on credit, which may have been called a ‘finance agreement’ or ‘hire purchase’
- home shopping account – this includes a catalogue account
How to find out if you had PPI
If you had PPI at all, you can be sure you were mis-sold it, as a result of a court ruling over the way commission worked.
To find out if you had it ever, all you have to do is ask, and banks and lenders will normally give you an answer within 40 days.
Nearly all banks now have simple online tools you can use to check if you were sold PPI.
All you will need are a few personal details, like name, date of birth, and address – also, importantly, your previous address.
If you have any relevant documents and details like account numbers, you can go straight to ‘making a claim’ with your provider.
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Paperwork might contain terms like the following, which indicate a form of PPI:
- accident, sickness and unemployment (ASU) insurance
- account cover
- credit insurance
- credit protection
- loan care
- loan insurance
- loan protection
- loan repayment insurance
- mortgage payment protection insurance (MPPI)
- payment cover
- protection plan
How much could you get?
Everyone’s favourite question, and there’s no one-size answer.
What compensation you might receive will depend how much you paid for the policy and over how long. Generally, you will get all the money you paid for the policy, plus interest on the same amount.
According to the Financial Conduct Authority, the average compensation payout is £1,700 – but, obviously, on a product such as a mortgage, for example, which you paid for many years, the amount could be far more.
Why are people getting compensation?
The reason is these products were mis-sold, and in huge numbers.
PPI was designed to cover repayments when you couldn’t afford them yourself – for example, if you were made redundant, or couldn’t work because of illness or an accident, or disability.
As many as 64 million policies were sold, mostly between 1990 and 2010, but some as far back as the 1970s.
PPI was often mis-sold, with buyers not understanding or having explained the terms of the sale.
Over £29bn has already been paid back to people who have complained about the sale of PPI.
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