SEVERAL banks and building societies have agreed to submit PPI complaints for you to ensure August’s claims deadline is met, and it could land you thousands of pounds.
Previously, if you did a check and PPI was found, it was up to you to then file a separate complaint to your provider.
But now, while you still need to submit an initial check to see if you had PPI, if the provider finds a policy in your name it’ll automatically convert it to a complaint for you.
The new process came into effect on Sunday (June 30), just two months before the August 29 deadline for complaining about PPI.
The easier claims process comes after a consultation with city watchdog the Financial Conduct Authority (FCA), and though the new process is voluntary, the FCA says most banks have signed up.
Just keep in mind that your provider may still require you to provide additional information in order to investigate your case fully, the FCA adds.
Have you been mis-sold PPI?
ACCORDING to the regulator, it is likely you were mis-sold PPI if you experienced any of the following:
- You were pressured into buying PPI or told you must have PPI
- You were promised a cheaper rate if you bought PPI
- You were told your loan or credit application was more likely to be accepted if you bought PPI
- PPI was added without telling you
- You were advised to buy PPI that did not suit your circumstances or needs
- You were self-employed, unemployed or retired but advised to buy PPI
- You had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
- You were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
- It was not made clear that you would pay interest on the PPI if it was added to your loan
- It was not made clear that the PPI would end before the loan or credit was repaid
HSBC and Lloyds Banking Group – which includes Bank of Scotland, Halifax, Lloyds and MBNA – told The Sun they’re now operating in this new way to ensure customers don’t run out of time to complain.
Meanwhile, Barclays and Nationwide Building Society have confirmed to MoneySavingExpert that they’re doing the same – The Sun has put this to these providers and we’ll update this article as soon as we get a response.
The Sun has also asked NatWest and Royal Bank of Scotland if they’ve signed up but we haven’t yet heard back.
The FCA was unable to give a full list of all the providers who’ve agreed to the new process.
For more information about how the the automatic process works, the FCA advises customers to contact their providers directly.
How to check if you’ve been mis-sold PPI
The deadline for submitting a PPI enquiry is August 29, so you’ll need to act fast in order to not miss out.
If you’re unsure whether you had PPI you can contact the bank directly to check – it then has eight weeks to respond to any mis-sold claims.
If it rejects your claim you can go to the Financial Ombudsman Service to have your case reviewed for free.
You can do this within six months of receiving your PPI provider’s decision, even if it’s after the August deadline, but you’ll need to submit the initial enquiry before then.
The FCA website has links to online complaints tools and contact details for the providers that receive the most complaints about PPI.
There are plenty of claims handling companies who are trying to get people to complain through them because they can charge a fee, but there’s no need to do this.
Processing the claim yourself means you’ll get to keep all your compensation.
If your claim is successful, the amount you get depends on your circumstances, but the average payout is around £2,000.
The FCA warns that the run-up to August 29 is likely to be a busy period for PPI providers, so to be on the safe side, get your complaint submitted before this date.
It’s estimated that 60MILLION policies were mis-sold over the past three decades to customers who were promised a cheaper rate if they bought PPI or it was added without them knowing.
Those who’ve already received compensation are also advised to claim back tax on the payout because you could be owed hundreds.
For more information about claiming PPI, see our guide to what is payment protection insurance and how do I make a claim.
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