It seems that the compensation claims in the wake of UK’s biggest misselling scandal could be finally drawing to an end, much to the relief of the culprit banks. Rumours are circulating that the Financial Conduct Authority (FCA) has decided to impose a deadline on PPI misselling claims.
The PPI scandal saw more than 26 billion pounds in compensation with Lloyds Bank making a lion share of that number – at 14 billion pounds. You could also be owed thousands of pounds if your PPI policy is found to be mis-sold.
It is important to note that the misselling was so rampant that there have been cases in which the PPI policy was added even if the buyer didn’t want it! So, check all your loan documentation for any surreptitious charges that you can’t place. Chances are they might be PPI charges from a policy that was sold to you without your knowledge or consent.
You might also have an established claim if the lender told you that PPI was non-negotiable and an absolute requirement for a loan to be processed. You may also have a claim if the lender tried to mislead you by stating that opting for a PPI policy can cut the costs of your loan.
Furthermore, it is important to note that there is no limit on how old your PPI claim can be. You can be missold a PPI policy in 1998 and still be entitled to a claim. This is so, provided that you have the original paperwork of your loan. If not, then you may only be able to file for a claim that was sold to you no more than 6 years back. This restriction comes to the fore because according to regulatory guidelines, banks are only required to keep policy records for six years. So, if you don’t have the loan’s paperwork, you can request it from your bank within the stipulated timeframe.
After you have established that you had been paying for a missold PPI policy, the next step is to file for a claim. You can do so by contacting your lender or bank. Be warned, that they may reject your claim but you have the right to appeal to the Financial Ombudsman (FOS). The FOS, is an independent body that serves as a moderator for banking practices. More than 60% of their PPI misselling decisions have gone in favor of the borrower. So, don’t give up if you are rejected by the bank in the initial phase. If you have a proper case, you still have a chance with the FOS.
Therefore, make sure that you cover all avenues and ensure that you aren’t owed any money for a missold PPI policy.