Mil­lions face ear­lier dead­line for PPI claims

Some will need to claim ear­lier than the 2019 cut-off – or miss out, warns Amelia Mur­ray

The Daily Telegraph - Your Money - - YOUR MONEY -

Mil­lions of peo­ple who were mis-sold pay­ment pro­tec­tion in­sur­ance are be­ing “mis­led” into think­ing that they have un­til the Au­gust 2019 dead­line, which could re­sult in them re­ceiv­ing a “frac­tion of the re­dress”.

The Fi­nan­cial Con­duct Author­ity, the City watch­dog, launched a new cam­paign last week, warn­ing peo­ple that they must com­plain to their bank about mis-sold PPI be­fore Au­gust 29 2019. PPI was sold to cover loans in case peo­ple got ill or lost their jobs.

How­ever, what the cam­paign fails to men­tion is that about 5.5 mil­lion peo­ple were con­tacted by their banks re­gard­ing PPI be­tween 2013 and 2015 and given a three-year dead­line to make a claim.

Do­minic Lind­ley, a former leader of the Which? Fi­nan­cial Ser­vices pol­icy team, said the al­ter­na­tive dead­lines were “buried” on the FCA’s web­site.

He said: “The in­for­ma­tion about the ear­lier dead­line is on the FCA’s web­site, but it is not on the home page and not ref­er­enced in the ad­verts. Mil­lions of peo­ple could have just weeks or months ths left to com­plain. You can’t ex­pec­tx­pect peo­ple to re­call a let­ter sent two or three years ago.”

The Fi­nan­cial Ser­vices s Con­sumer Panel, an in­de­pen­dent statu­tory body, chal­lenged the FCA’s com­mu­ni­ca­tions last Oc­to­ber. It said it was as not clear that the dead­line for some con­sumers would be ear­lier than 2019.

In a let­ter, it said all banks should “proac­tively con­tact their PPI cus­tomers ex­plain­ing the in­di­vid­ual dead­line that will ap­ply to their com­plaint, whether or not they have al­ready done this”. The FCA re­fused.

Un­sus­pect­ing con­sumers who miss their dead­line, or are turned down, can still seek re­course fol­low­ing a court case known as “Plevin”. This fo­cuses on com­plaints about the com­mis­sion earned by the provider for the sale of the pol­icy if it makes it un­fair. How­ever, pay­outs un­der these guide­lines will be greatly re­duced.

The FCA sug­gests that if your bank earned more than 50pc com­mis­sion on the sale of the prod­uct they should re­fund any­thing over this. For ex­am­ple, if you dis­cover that the bank earned 75pc com­mis­sion from the sale of your pol­icy, you will get just 25pc of your pre­mi­ums re­funded, plus in­ter­est.

As many as 64 mil­lion PPI poli­cies were sold along­side loans, credit cards and mort­gages, mostly be­tween 1990 and 2010, al­though it’s un­clear how many were mis-sold.

Since 2011 £27.4bn has been paid out by banks to cus­tomers who com­plained about how the poli­cies were sold. How­ever, the New City Agenda, a fi­nan­cial ser­vices think tank, said the true cost of the PPI scan­dal stood at £43.5bn.

PPI re­mains the most com­plained about fi­nan­cial prod­uct, ac­cord­ing to the lat­est fig­ures from the Fi­nan­cial Om­buds­man Ser­vice. There were al­most 90 90,000 com­plaints about PPI in t the past six months, which made up more than half of all cases re­ported to the se ser­vice.

The FCA said it had amend amended its web­site to make it clearer that some cases would be subje sub­ject to an ear­lier dead­line. A spokes spokesman said: “The mes­sage from our cam­paign is very cle clear – that peo­ple should ta take ac­tion now and not wait un­til the dead­line to de­cide whether to m make a com­plaint.”

The FCA’s PPI dead­line cam­paign

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