It’s been over a decade since the PPI mis-selling scandal first came to light, but the banks are still paying millions of pounds on a monthly basis to customers. To date, £30 billion has been put back into the pockets of consumers. This is in addition to fines from the Financial Conduct Authority (FCA) and paying employees to deal with the sheer volume of claims.
This figure is likely to increase by billions of more pounds before the August 2019 deadline. The FCA set a deadline to encourage people to make a claim, so PPI payments will continue to plague the banks until the deadline hits next year.
Earlier this month, the FCA released its latest advert for the PPI deadline. High street banks involved in the mis-selling scandal have contributed towards the £42 million advertising campaign. Alongside the adverts, the FCA has set up a dedicated social media page, website and hotline for consumers to call with queries.
Some consumers have received thousands of pounds from their bank, despite not even realising that they had PPI in the first place. In the worst-case scenarios, consumers had their signatures forged by bank employees. From mortgages to overdrafts, PPI was a lucrative product which the banks were keen to sell on a variety of products.
The Financial Ombudsman (FOS) is dealing with many thousands of PPI claims, so much so that consumers could be waiting two years for their claim to be resolved. However, many claimants are facing poor customer service, and concern about staff training has been highlighted by Channel 4’s Dispatches documentary.
With just over a year left to claim PPI, consumers are acting now to make sure they don’t miss out on the opportunity to get compensation. Acting swiftly has become essential, as even more people could be due a refund than initially predicted.
Plevin Rule Leads to More PPI Claims
In 2014, a PPI claims case referred to as ‘Plevin’ opened up PPI claims to even more people. Mrs Susan Plevin made a PPI claim against Paragon Personal Finance. When investigating the claim, it was uncovered that 71% of her PPI sale was a commission. Mrs Plevin won the court case, deeming that this amount of commission was, in itself, a form of mis-selling.
Other people can make PPI claims under the same ‘Plevin’ rule if over 50% of the PPI sale was a commission. At the time that PPI was mis-sold, the average bank commission on the sale was 67%. This means that thousands more people could be due a PPI refund, even if they consciously bought PPI. Consumers who had claims previously rejected can claim again under the Plevin rule and hope for success.
Claims Companies Dealing with Hundreds of Claims
With hundreds of PPI claims companies registered by the Claims Management Regulator, consumers have plenty of choices when it comes to using a PPI claim company. With some companies charging 30% or more on successful claims, many customers are left out of pocket after making a successful claim.
Finding a no win, no fee PPI claims company — and one with a low fee — should be a priority for all consumers. Using a claims company means customers don’t need to worry about communication with the bank and the claim is hassle-free. If you no longer have the PPI paperwork, a claims company can uncover this for you — often free of charge.
Consumers should act as soon as possible if they believe that they could be owed money from mis-sold PPI. The clock is ticking and nobody should be left without the opportunity to make a claim.