As you would have undoubtedly already seen, the PPI deadline is set to come into action on the 29th August 2019, which means time is running out for you to make a PPI claim. A monumental event that will bring to end one of the most costly financial scandals in British history; we’re going to take a look at what caused the PPI scandal in the first place, how the deadline was created and why it is worth your attention.
What Caused The PPI Scandal?
Payment Protection Insurance (PPI) was sold as part of loans and mortgages, to protect a borrower should they ever default on their repayments as a result of them being ineligible for work, either because they had lost their job or were unable to earn due to serious illness.
However, many of these protective packages were in fact completely useless and just a ploy for banks to add gratuitous commissions onto each loan policy they approved.
It is estimated that between the years 1990 and 2010 more than 45 million of these ‘preventive’ insurances were added to loans that consumers took out at some of Britain’s largest and most high profile banks.
Why Introduce A Deadline?
In 2011, it was officially announced to the public that millions of PPI policies had been mis-sold to the British population, causing mass outrage. This then led to in the following years more than £31.9 billion worth of compensation being paid out to customers.
With that figure set to continue rising, Llyods, Barclays, RBS, HSBC, and Santander collectively set aside a further £35 billion to cover the overall cost, it was at this point that the Financial Conduct Authority decided to bail out the banks.
In March of 2017, Andrew Bailey, Chief Executive of the Financial Conduct Authority stated that, “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off.”
Why The PPI Deadline Is Worth Your Attention
Now while it might appear that the deadline is plainly being put in place to benefit the banks, protect their blushes and prevent them from having to pay back any more compensation, the deadline also benefits you, the consumer.
Let us explain:
It is now easier than ever before to have your PPI checked. The Financial Conduct Authority (FCA) also released an order at the same time as the deadline, which commanded lenders and banks to make it as easy as possible for claimants to check if they were wrongfully sold PPI alongside any of their loan agreements. This was implemented to ensure that as many consumers as possible could make a claim before the deadline in August of next year.
It is now the cheapest it’s ever been to make a PPI claim. To ensure that a PPI case is successful, people will often make use of a claim management company. The vast majority of these companies will only be able to do business until the deadline in August of next year and for this reason are offering their services for a reduced price, in an attempt to recoup as many profits as possible before their business inevitably dries up. This means that if you use one of these companies you’ll be able to benefit from a discounted service.
Easier and cheaper than ever before to make a PPI claim, if that doesn’t mean the deadline next August is worth your undivided attention then we don’t know what is. Remember if you think you might be eligible for a claim, send your appeal off before the 29th August or risk missing out on your compensation forever.