MILLIONS more customers could be due compensation even if they’ve been turned down before because of the Plevin court ruling, experts have warned.
The Financial Conduct Authority (FCA) today is starting the clock on the two-year PPI reclaiming deadline, as it seeks to draw a line under the mis-selling scandal that has already cost banks £27.4 billion. Experts from MoneySavingExpert (MSE) are now reminding customers this also means they can now make claims on the back of a court case known as Plevin.
The ruling means customers can get money back if their bank did not declare that at least 50 per cent of the cost of the PPI policy was in commission. As bank loans with PPI typically averaged 67 per cent and lenders almost never mentioned it, a lot of people are likely to be owed compensation. This means over 1.2 million people who’ve had past claims rejected by the bank or the ombudsman will rightly have their cases reopened due to the ruling. And it’s possible millions more will be able to claim now too, according to MSE.
If you’ve had a PPI claim rejected in the past, you should resubmit it to your PPI provider and ask them to check for undisclosed high commission. Martin Lewis, the founder of MSE, said: “Until now, you were usually only due money back from PPI if the firm had either given you an inappropriate policy, such as employment cover for the self-employed, or lied to you, like saying PPI was compulsory.
“Yet with Plevin, in most cases it’s simply a case of ‘Did you have PPI? Then you are owed money.” “So if you have a loan, credit card or other debt product that has been active at some point since 2008 and had PPI on it, then if you haven’t reclaimed already, you’re almost certainly due some money back, even if you don’t think you were mis-sold in any other way.” Around 60 million PPI policies were sold over the past 30 years – during which there have been 18.4 million complaints, according to the Financial Conduct Authority (FCA).
The FCA is urging people who are “unsure” whether they had PPI to make a claim before the deadline on August 29 2019. The claims industry believes just a third of eligible claims have been paid so far, leaving banks facing the prospect of huge payouts. Last month, Barclays set aside £700m and Lloyds Bank another £1bn to pay for further compensation claims.
Gareth Shaw, a money expert at consumer group Which?, previously said: “With banks now setting aside more money for PPI claims, it shows that the fallout from this mis-selling scandal is far from over and there are significant amounts of compensation due to consumers.”