PPI deadline day: how to claim
Final chance for consumers to apply for compensation
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.
What is PPI?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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.”
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - December 21, 2024
Cartoons Saturday's cartoons - losing it, pedal to the metal, and more
By The Week US Published
-
Three fun, festive activities to make the magic happen this Christmas Day
Inspire your children to help set the table, stage a pantomime and write thank-you letters this Christmas!
By The Week Junior Published
-
The best books of 2024 to give this Christmas
The Week Recommends From Percival Everett to Rachel Clarke these are the critics' favourite books from 2024
By The Week UK Published
-
How to choose a high-yield savings account
The Explainer What to consider, from interest rates to fees to accessibility
By Becca Stanek, The Week US Published
-
How new bank transfer scam protections could help you
The Explainer Banks must now refund up to £85,000 of losses from authorised push payment fraud
By Marc Shoffman, The Week UK Published
-
What is early direct deposit and how does it work?
The explainer Next time you are in a financial pinch, this option can get you early access to your paycheck
By Becca Stanek, The Week US Published
-
How can students and young people start building credit?
the explainer Young adults usually don't have a credit score — but there are several ways they can begin to build credit in preparation for their financial future
By Becca Stanek, The Week US Published
-
The personal check is on the way out. Here's what to use instead.
The Explainer A growing list of retailers, including Target and Whole Foods, no longer accept personal checks as payment
By Becca Stanek, The Week US Published
-
Is it worth switching banks for a sign-up bonus?
The Explainer An immediate cash bonus may sound great, but there is a lot to consider before jumping ship
By Becca Stanek, The Week US Published
-
Should couples have a shared bank account?
The Explainer Weigh the pros and cons to determine whether sharing a bank account is right for you and your partner
By Becca Stanek, The Week US Published
-
How to avoid check fraud this holiday season
The Explainer A record number of suspicious activity reports tied to check fraud this year has put banks on high alert
By Becca Stanek, The Week US Published