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There’s no doubt that you’ve seen Arnold Schwarzenegger’s robotic head on the side of a bus or on a TV advert. He’s telling everyone to “do it now” and decide if they want to make a PPI claim.
This is because the Financial Conduct Authority (FCA) has set a deadline for all PPI claims. For many of us, this will be a joy to our ears — no more cold calls or adverts with Arnie shouting at us. But what does this mean in reality?
It means that by 29th August 2019, everyone will need to have submitted a PPI claim to their bank if they think they might have been mis-sold PPI.
If you’re one of those thinking ‘it wasn’t me’, taking the time to check could be financially rewarding.
Why making a PPI claim makes financial sense
The number of people who’ve said, “I never knew I had PPI” is astounding. This is because the level of mis-selling was incredible. So many people had it automatically added to loans, credit cards, mortgages and more. Many consumers were told they had to have PPI to have the loan or that it would increase the chances of their credit card application being accepted. These were all lies spun to force people into buying the insurance.
64 million PPI policies were sold in the UK, which equates to more than one policy per adult.
If you’re one of those thinking ‘it wasn’t me’, taking the time to check could be financially rewarding. The average PPI claim amount is £1700 — this is not a small sum of money. For many people, this money can contribute to paying off debt or doing some much-needed home improvement. For some families, it can pay for a summer holiday.
But people are busy and often don’t have the time to find the paperwork and make a claim. This is what no win, no fee PPI claims companies are for. There are reputable claims companies who will do everything for you, from investigating whether you had PPI to communicating with the bank. There’s also no need to pay a hefty fee — instead, find a company that charges less than 20% on successful claims.
Even if you remember purchasing PPI you can still make a claim
Do you vividly remember buying PPI as a valid product? Many people did. The insurance was well suited to many customers, but, unfortunately, the banks saw it as a lucrative product and this is when the mass mis-selling began.
But here is the big piece of news: even if you remember signing the agreement and wanting PPI, you can still make a claim. But how?
Introducing the Plevin rule. In 2014, Mrs Plevin won her PPI case because the commission on her PPI sale was 71%. The outcome of this case was a game-changer for PPI claims. Now, anyone who had more than 50% commission on their PPI sale and was unaware of this can make a claim.
So even if you remember ticking the box and signing on the dotted line, you can contact the bank and make a claim based on the commission, if you were unaware how high it was. At the height of the mis-selling scandal, many banks had 67% commission on their PPI sales.
Why women should make a PPI claim
Obviously, there was no gender bias when bank employees were told to mis-sell PPI. However, when it comes to reclaiming, there could be some issues for divorced women.
In 2016, it was revealed that some women were missing out on their PPI claims because the bank only gave compensation to one partner. Often, this was the husband, if their name was the first on the account.
While it was only RBS and Natwest identified as having this problem, it’s something to be aware of if you are divorced. Whether it was an individual or joint account, PPI could have been attached.
If you know that you had a joint account with your ex-partner, contact the bank or a claims company to find out if there was PPI. If you’re entitled to make a claim, different lenders will respond in different ways. Some may give you 50% of the refund and the rest will go to your ex-partner, should they make a claim. Other lenders may require permission from both parties in order to make the claim. However, if yours is the first name on the account, the bank might give you 100% of the refund.
August 2019 might seem like a long way off, but a claim can take a number of months to be resolved. Over £30 billion has already been paid by the banks to consumers and much more is set aside for payments before the deadline. If you start now, you should be able to receive your money before Christmas, which is always a great time to receive a cash boost.