Yesterday saw the start of a new two-year countdown for claims over payment protection insurance to be made.
On the same day, new rules have made it more likely that claims – including those turned down in the past – will be successful.
As well as urging people whose claims have been rejected before to make a new bid after a court hearing known as the Plevin ruling widened the number of eligible cases, experts have also claimed time is running out to make a successful bid for compensation.
How do you know if you have been mis-sold?
Martin Lewis, 45, on This Morning earlier this month and explained what counts as mis-selling.
He said: “Typical examples include they lied that PPI was compulsory or it’d cut your loan costs – sometimes it was added without asking, or even after you’d said no.
“They had a duty to ensure it was suitable for you, For example, you were self-employed but got unemployment cover or you had a past medical condition they didn’t ask about.”
However, there is now a change which means millions more people may now have been mis-sold.
Martin explained: “In the deadline ruling, the regulator also clarified info on a recent court ruling called ‘Plevin’. It says that if your PPI was made up of more than 50 per cent commission and you weren’t told it then you are due the extra back plus interest.
“As the average commission was 67 per cent and banks almost never mentioned it, this pretty much means almost everyone who had PPI is likely to be due something back. This new rule comes into force on 29 August this year.
“So much so lenders will be forced to write to 1.2 million people who were previously rejected and may now be owed due to Plevin.
“Though ridiculously it’s not ordered them to send these letters to everyone whose commission was over 50 per cent – only those who’ve already complained – so you’ll need to do it yourself.”
Explaining how to reclaim, Martin said: “You do NOT have to use a claims management company to do this. You can do it easily yourself using free template letters and online tools or even just calling your bank.”
When is the deadline?
Customers mis-sold PPI will have until August 29, 2019 to get their cash back.
Which? is warning that consumers are potentially at risk of missing out due to a lack of awareness of the deadline, negative perceptions of the claims process,and a limited knowledge of the Plevin rule.
It says the average successful PPI claimant receives around £1,200 through mis-sold PPI and the latest figures show that £27.4bn has been paid out since January 2011.
Alex Neill, managing direct of Which? home products and services told the Chronicle it was important to act.
He said: He said: “With just two years left for consumers to claim compensation for mis-sold PPI it is worrying that so many are unaware of this deadline, while others have been put off from claiming because they think it’s too much hassle or they don’t want to pay a fee.
“Previously unsuccessful claimants should consider re-submitting their complaint due to the new Plevin ruling which has made thousands more consumers eligible for compensation. Act now – time is running out.”
Arnold Schwarzenegger has joined the call to act over mis-sold PPI before the deadline.