New figures reveal the number of new PPI claims went up 40% in the second half of 2017, due to a new TV advertising campaign alerting people to the 29 August 2019 deadline.
New data shows that 1.5 million people in the UK complained about mis-sold Payment Protection Insurance (PPI) in the second half of 2017 - the highest level of new PPI claims in four years.
The rise was mostly thanks to a new advertising campaign launched by the FCA to warn consumers that the deadline to make a PPI claim is fast approaching, as well as a new court ruling known as the 'Plevin ruling'
The TV and print adverts feature a robotic Arnold Schwarzenegger warning that the PPI deadline is 29 August 2019.
If you are unsure whether or not you have been mis-sold PPI in the past, you will need to approach your lender directly as the PPI deadline was on 29/08/19.
What is PPI?
PPI stands for Payment Protection Insurance, an insurance policy that was sold when you took out a loan, credit card, store card, car finance etc.
It's a product designed to cover your loan or finance repayments in case you are no longer able to afford the payments e.g. if you have an accident or suffer a serious illness and are no longer able to work.
PPI is not necessarily a bad thing and if used in the right circumstances, it could actually be a financially sensible product to have. However, banks and other organisations were found to have mis-sold PPI policies on a massive scale and now, because of the 'Plevin ruling', even if you had PPI at any point, you are probably entitled to make a claim to get some money back.
Close to £30 billion has been paid back to consumers due to mis-sold PPI claims, and now with the Plevin ruling, it's likely that many more will claim before the deadline.
What is the Plevin ruling?
Before this ruling, in order for a consumer to claim back money they had to have been 'mis-sold' the policy (i.e. the bank lied and said they had to have it, or they added it without their knowledge). However, the Plevin ruling means that if you ever had PPI on a product since 2008 then you are most likely owed some money.
It is all based on a court case brought by Susan Plevin in 2014. The court ruled that because Susan had not been told about the huge amount of commission taken from her PPI payments - which were 71% - then she was effectively 'mis-sold' the policy.
When banks sold PPI they received a lot of commission, and the FCA's Plevin ruling states that is more than 50% of your PPI costs went to the lender as commission, and this wasn't explained to you then you are owed the extra money above the cost.
In basic terms, on a £10,000 loan over five years, the Plevin compensation would be around £500 - or more if you were mis-sold PPI in other ways as well.
How to find out if you have a claim
If you feel you may have been mis-sold PPI in the past, please get in touch with your lender directly. You may not be able to make a claim now, as the PPI deadline has now passed (29/08/19).