5 Steps to Claim PPI before the Deadline

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Payment Protection Insurance is more commonly known by its abbreviation, PPI. You’ve likely heard about it from TV adverts or billboards. But, do you know what PPI is and if you could have been mis-sold a policy?

PPI policies were sold alongside mortgages, loans and credit cards. During the 1990s, the banks realised that this was a profitable product and began systematically mis-selling it to thousands of customers.

With high profit margins, bank employees were encouraged to sell as many policies as possible. Mis-selling tactics were often employed, including — but not limited to — telling customers that it was compulsory or that it would improve a credit score. In some instances, it was added automatically to financial products.

When the scandal came to light, the Financial Conduct Authority (FCA) fined the banks involved, and customers began submitting PPI complaints to receive refunds. For over a decade, customers have been reclaiming PPI and to date, the banks have paid back over £34 billion.

But, there are now just a few months remaining to claim PPI. This is because the FCA imposed a deadline for customers to submit claims to the banks. 29th August is the cut-off date for people to identify mis-sold PPI policies and log a complaint with the bank.

If you think you might have been mis-sold a policy, or, even if you are uncertain, now is the time to check. Below is a simple step-by-step guide to claiming PPI before the impending deadline.

1. Locate past Financial Paperwork

The first step is to find evidence of a PPI policy. The most straightforward way to do this is to find your old financial paperwork. Locate any past agreements from mortgages, loans or other types of credit.

If you find the paperwork, PPI should be listed. But, be aware that it could have a different name, such as Accident, Sickness and Unemployment cover (ASU), account cover or loan protector.

If you can’t find the paperwork, this doesn’t mean that you can’t file a claim. The alternative options are to ask a solicitor or PPI claims company to investigate for you — or contact the relevant bank and check if they still have a record of a product with PPI attached.

2. How Was it Mis-Sold?

If you identify a PPI policy, you can then contact the bank to make a complaint. A PPI claims company can continue their work and submit a claim on your behalf, or you can file a claim with the bank yourself. Some banks may allow you to file a PPI claim online, while others will need you to send a form.

The important part is to explain how the policy was mis-sold to you. It’s essential to provide evidence of this when necessary. For example, PPI policies were useless for those who were self-employed, yet, they were sold to many people in this position. Therefore, providing evidence that you were self-employed is essential.

3. Contact the Bank or Lender

Once you have evidence of the PPI policy and know how it was mis-sold, you can then send the claim to the bank — or ask the claims company to do it on your behalf. If you had more than one policy, you will need to contact all of the different banks.

If the bank or lender is no longer operating, it may have been taken over by another bank, or you may need to contact the Financial Services Compensation Scheme.

4. Wait for an Outcome

The bank will acknowledge your claim, and if it requires any more information to process your case, it will contact you. The banks should respond with an outcome within eight weeks.

If your claim is upheld, you will receive a refund shortly afterwards. If you worked with a claims company, you will need to pay them the agreed percentage of the refund amount.

5. Contact the Financial Ombudsman Service (if Necessary)

If the bank rejects your claim, you have the choice of sending it to the Financial Ombudsman Service (FOS). As an independent adjudicator, it will review rejected PPI complaints and decide if the bank made the right decision. If it determines that the bank made the wrong decision, you will receive your PPI refund. But, due to an influx of PPI cases, the FOS can take up to two years to resolve your PPI claim.

With four months remaining to submit a complaint, act sooner rather than later. Making a PPI claim is free, so you have nothing to lose. Don’t miss your opportunity before the deadline arrives.