British consumers have just hours left to put in a PPI compensation claim, as one of the most high-profile financial scandals of recent times draws to a close.
The Financial Conduct Authority (FCA) deadline is 11.59pm on 29 August. “This is the final chance for consumers to think about whether they had PPI and submit a complaint directly to any providers right away,” says the regulator’s website.
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Payment Protection Insurance, or PPI, was an insurance policy attached to credit agreements such as loans, mortgages or credit cards that was designed to cover repayments if policyholders fell ill, had an accident or lost their jobs.
However, between 1990 and 2010, around 64 million of these policies were mis-sold by banks and loan providers to people who did not need them or would not be covered, reports the BBC.
In 2011, banks lost a legal battle to block a review of past sales of the insurance, triggering a flood of compensation claims. The typical payout amounts to £2,000, with a total of £36bn in compensation handed over so far.
The claiming process has not been without controversy. Claims management companies offering to apply for compensation on consumers’ behalf - in exchange for a fee - have bombarded members of the public with phone calls and other unsolicited communications.
Neverthless, the scheme has had significant consequences. “PPI has brought claiming and big-ticket money-back consumer rights into focus,” Guy Anker, managing editor of MoneySavingExpert, told the BBC.
He added that the fact PPI was mentioned on reality TV show Love Island indicates the extent to which the saga has put consumer rights in the spotlight.
How can I claim?
It’s a surprisingly simple process, because providers are obliged to make complaining about PPI as hassle free as possible.
The FCA website has a comprehensive list of providers that have sold PPI, and these providers will have online tools to make PPI claims simple.
You need just your date of birth, and current and previous home addresses to get started. It’s free of charge to register a claim.
Finance expert Martin Lewis advises: “If you are checking directly with your bank, ask it for a written confirmation that your enquiry has been submitted, and that this means your claim is triggered.”