Millions of Brits who were mis-sold PPI could miss out on thousands of pounds if they do not make claims within three months.
So far, a jaw-dropping £34.4bn has already been paid out to millions of victims, but guru MoneySavingExpert believes hundreds of millions are still owed.
PPI – payment protection insurance – is sold with loans, credit cards, mortgages, and other types of credit. The policy covers repayment if you are suddenly unable to make it.
It is estimated that more than 60 million people were mis-sold PPI in the 1990s and early 2000s, with many being sold the insurance without their knowledge, incorrectly told it’s compulsory, or systematically overcharged for the coverage.
Customers have until 11:59pm on 29 August to submit a claim for compensation, which could amount to thousands of pounds. Applications submitted after this date will not be processed.
In MoneySavingExpert’s latest newsletter, founder Martin Lewis urged customers to submit their claim soon, in case something goes wrong.
“As you may need to do a bit of prep work, start checking if you can claim right away,” Lewis said.
“Don't leave submitting your claim till the last minute, anyway, as it can just take the postman losing a letter or an email going astray, and you're stuffed.”
It is free to submit a claim. You can check if you were mis-sold PPI by looking over old credit card, mortgage, loan, store card, and overdraft statements. If you don’t have paperwork, you can request it from your lender.
Even if you meant to purchase PPI, you still could have been mis-sold the insurance due to the “excessive commission” taken by banks and building societies, MoneySavingExpert explained. Under a landmark 2014 ruling, if more than half the cost of PPI included undisclosed commission, you are entitled to the extra above that.
You can go back as far as you like – though the process can be more difficult if the insurance was taken out prior to 2005, Lewis said.
The new deadline was put in place by the Financial Conduct Authority (FCA) in 2018.