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Update: who is benefiting from the deadline on PPI claims?


The Financial Conduct Authority has proposed a deadline of June 2019 for people to claim for mis-sold Payment Protection Insurance.

Payment Protection Insurance (PPI) was designed to be a safety net to help people meet financial obligations when struck down by misfortune. Yet it has proven itself to be one of the costliest mis-selling scandals with a £24.2bn bill to date.

Despite thousands of new cases still pouring in every week, the Financial Conduct Authority (FCA) believes that a timebar is the solution to bring PPI to an orderly conclusion. But will it?

Drawing a line under PPI

Banks are reporting that PPI claims are falling, but the latest figures from the Financial Ombudsman Service (FOS) suggest that full settlement of the problem is still a long way off.

The FOS has revealed that as many as 4,000 new complaints are received every week. And in 2015-16 there were 188,712 new PPI cases, with 66% of cases upheld by the FOS.

The major banks have collectively set aside more money (£32bn) for potential claims than has been paid out to date.

Additionally millions are facing a deadline of sooner than June 2019. Around 5.5 million people were issued letters from their banks to inform them they may have a legitimate PPI claim to make. These letters gave the recipients a three year time frame to make claim and some three million of these letters were sent in 2013.

And as Wavechange pointed out:

If a company has wrongly sold PPI I am not convinced that they will sort out the problem themselves.

Clearly something isn’t working. The PPI scandal has been one disaster followed by another, it is the country’s biggest financial scandal with a wholly inadequate redress scheme.

The FCA has proposed an awareness raising campaign for June next year, but it’s unlikely to make much of an impact. Much more needs to be done. The FCA should call on the banks to ensure that those who were mis-sold PPI get back the money they’re owed before it’s too late.

Update: 2 March 2017

A deadline has been confirmed for claiming back mis-sold payment protection insurance (PPI).

Today the Financial Conduct Authority set a deadline for claims to be made by 29 August 2019.

Since January 2011, £26.2bn has been paid out for mis-sold PPI. The total amount set aside by the big five banks alone is more than £35bn – as many people are still yet to claim the compensation they are due.

Our Director of Campaigns and Communications, Vickie Sheriff, said:

‘It’s been clear for years that the banks should be working much harder to resolve PPI claims fairly. The current process has been wholly inadequate and driven too many consumers to use claims management companies.

‘Now the regulator has confirmed a deadline for the victims of this mis-selling scandal to make a claim, it must ensure that banks are doing much more to help customers get back the money they are owed.’

Importantly, those who’ve previously had their claims rejected are able to claim for ‘undisclosed high commission’ on PPI. This comes following a Supreme Court ruling in Plevin vs Paragon Personal Finance Ltd.

If you’re concerned that you were mis-sold PPI and want to know how you can claim this back then take a look at our PPI mis-selling checklist. We’ve also created a PPI claiming tool that allows you to keep 100% of your compensation.

So have you tried claiming for PPI, how easy did you find it? Would you like to see banks do more to reach out to potentially affected customers? Or do you think that they have done enough to resolve mis-sold PPI claims?


If people have been correctly informed then 3 more years, in my view, is plenty of time to get their claim in. Just how long do we need to take action?

If PPI has been mis-sold and valid claims are still being made, why should the public be denied the right to make a claim? I don’t know what the FCA is thinking about in view of the number of successful claims still being made.

They are not being denied the right to make a claim. They will have had 6 years by the proposed deadline. How long do people need to decide to do something?

Why put a time limit on people making valid claims? Many may have been put off making a claim by the number of nuisance calls about PPI and assume that it’s just a scam.

I’m still of the opinion that companies that mis-sold PPI should have been been told to refund everyone, and cancel the polices. Those that actually wanted PPI can then take out a new one. This whole affair would have been over in weeks/months not years like we have now and more importantly claims management companies wouldn’t have seen a penny. So no annoying ads/phone calls. This mess is partially the result of having weak regulators.

Roger Todd says:
7 August 2016

The compensation awards are completely over the top. People are being given sums of money far greater than the financial loss suffered. I suffered a loss in the Equitable Life scam but because the Government was potentially picking up the tab, rather than bank shareholders who include pensioners, the compensation awarded was far below the loss many peolple suffered. Time to call time on the whole episode.

I was thinking along the same lines recently when I read that Barclays were having to set aside even more money to meet future claims and that other banks were having to do the same, and every time the so-called deadline gets extended the risk just keeps growing. I find it totally incomprehensible that such a high percentage of the policies purchased were mis-sold, and that over 24 BILLION pounds has already been awarded as compensation with provisions by banks already up to £32 bn. I mean, just divide the 18-65 population into that figure and see if you can believe it! Then double it because half that population did not buy PPI. The odds and winnings are better than the best lottery!

I realise that PPI was taken up by people not just to cover mortgage repayments but lots of other consumer loans and other credit arrangements, but was it all done in an underhand way? Was every borrower duped? Were there no cooling-off periods? Did no-one benefit from any of the protection offered by the policies? Is there a degree of punishment of the banks in the FOS’s treatment of the claims – and, if so, how does that help the economy? And what happened to any Insurance Premium Tax paid on policies that have been annulled – has the Exchequer also lost out to the tune of undisclosed billions?

We all like to claim easy money, John. Most VW owners are screaming for large payouts, having always been avid environmentalists; Mastercard holds the promise of £19 billion repayment (up to -sorry – £ £400 each) because of overcharging, to be followed by Visa. If a bank website goes down claims for compensation abound – easier to simply pay out than to argue. And PPI – I agree – how many are being paid out after so long who were not really mis-sold. Who gains – well the lucky recipients and. more likely, the parasitic legal organisations who persuade them to let them handle their claims. Who loses? Everyone else with bank accounts; this money does not come from some magic fund, it comes from you and I.

OK – a bit of a rant but I dislike intensely the growing compensation culture, trying to emulate that in the States. When will we see the ludicrous indidual £100m law suits that seem like pantomime but enrich lawyers in the main. I am all for genuine compensation where people suffer a real and quantifiable loss, unaccompanied by the prevarication normally seen in the courts and public bodies.

I don’t blame people for putting in a claim – there’s been so much publicity about it and the claims industry has been running on stimulants for several years now so the number of claims is not surprising. But the number that have ben successful is the amazing thing, and I believe the Financial Ombudsman Service has made it almost impossible for the banks to deny compensation if there was the slightest error or omission in their fact-find before confirming a PPI policy or if they failed to ask three times if the customer wanted PPI. As you say, all the customers of the corporate banks are having to suffer as a consequence, and to a large extent the shareholders are suffering heavily for once [just look at RBS which mostly means the taxpayer]. I am not sure whether the mutuals have been exposed to PPI mis-selling to the same extent as the banks – I presume not although I seem to recall that Nationwide BS had set aside well over £100 million.

As a matter of interest, is payment protection insurance an unmentionable now, or is it so hedged about with safeguards and risk assessments that it has doubled in price? I happen to think it is a useful option in certain situations so long as the applicant is properly prepared and questioned. I guess a lot of people were so frightened or panicked into taking out PPI by false doom-laden prophecies, and then oversold a policy, that borrowers now tend to avoid something that could be a worthwhile safety net at the right price, for the right amount and on the right terms.

Just how long has this PPI thing been going on I am tired of hearing of it If those affected do not know be now they do not deserve any compensation They must be thick or stupid or have more money than sense

Christelius says:-
In response to a telephone call in September 2015 – and being led to believe that a PPI claim from myself should be worth tens of thousands of pounds, I agreed to sign up with Claimline Direct.
I was required to send a cheque for £495 to begin necessary enquiries – but assured that, if I did not receive any monies, they would refund this sum to me. The turnaround time was they said approximately 16-24 weeks.
Despite repeated requests/demands for this refund (not having received any PPI payouts), and after an unconscionable time, I have still not been refunded!
What more can I do now?

It has been going on for far too long and the deadline should be 01 April 2017

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Isabel says:
28 September 2017

Hi there, I sort of stumbled onto this page as I was looking for some advice on what to do about being mis-sold PPI (my husband has only recently found out that he was mis-sold one a while ago). I don’t know if anyone will be able to help me but I thought I might as well ask on the off chance! I was basically wondering (as stupid a question as this may sound) – how exactly are we supposed to go about making a claim back for it? I’ve read lots of conflicting advice on the subject and it’s really thrown both myself and my husband. Are we better making the claims ourselves or going through a company? I was reading an article about a business called EMCAS has anyone heard of them (this is them: http://www.emcasclaims.co.uk/financial-misselling/have-i-been-mis-sold-ppi/1 )? Would they be the type of company we should be going through? We’re really at sea here so any advice anyone could offer us would be fantastic.

Isabel, we would advise you avoid claims management companies, they will normally take a percentage of the money you are owed. You can put in a claims request yourself, which means you’ll receive 100% of the money owed to you. Have a look at our consumer rights section to see our PPI advise, and we have a PPI claim tool which is 100% free to use.

If you do need any other help, or want to speak to a free money expert, feel free to call our Money Helpline.

Does anyone have any sample PLEVIN letters, or know where and how to get a hold of one, please?

Many Thanks

Who is benefitting? These vultures who I received a letter from this morning trying to look like an official document. They charge 25% + VAT for the privilege.
An interesting fact would be how much these vultures have managed to bank that the rest of us will end up paying for.