150,000 rejected PPI victims to be given another chance of compensation ahead of August claims deadline
The watchdog has issued a new set of guidelines to firms which could see between 70,000 and 150,000 victims who've already had their claims rejected actually get redress.
The Financial Conduct Authority (FCA) has tightened the rules following a consultation launched last year, which may help customers previously turned down for compensation claim a refund.
The regulations are a bit complicated but bear with us because it may help you get back what you are owed.
PPI is an insurance product sold alongside a credit product, such as loans, mortgages, and credit cards, that covers repayments if customers are suddenly not able to, like because of losing their job.
It's estimated that 60MILLION policies were mis-sold over the past three decades, for example, to customers who were promised a cheaper rate if they bought PPI or it was added without them knowing.
Have I been mis-sold PPI?
- You were pressured into buying PPI or told you must have PPI
- You were promised a cheaper rate if you bought PPI
- You were told your loan or credit application was more likely to be accepted if you bought PPI
- PPI was added without telling you
- You were advised to buy PPI that did not suit your circumstances or needs
- You were self-employed, unemployed or retired but advised to buy PPI
- You had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
- You were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
- It was not made clear that you would pay interest on the PPI if it was added to your loan
- It was not made clear that the PPI would end before the loan or credit was repaid
Banks would also take a huge amount of commission of 67 per cent on average for every policy sold.
Back in 2014, a court ruled that a customer called Susan Plevin was unfairly treated because she wasn't told about how much commission the firm would earn from selling her the policy – which was a huge 71 per cent.
This was then dubbed the "Plevin rules", meaning that customers are owed compensation if the firm that sold you your policy earned 50 per cent or more in commission from the sale.
But the guidelines were vague and companies weren't required to automatically check a complaint against the Plevin rules.
Now that the rules have been tightened, customers who were turned down for compensation are being advised to try again.
The FCA has told firms to write letters to PPI customers who bought their products before April 6, 2007 and previously had their complaints rejected.
You can submit a new complaint if:
- You're one of the 10,000 customers who were previously told that they couldn't claim based on the commission costs, even if you were told about it at the point of sale;
- You're one of the estimated 140,000 customers who were previously rejected but weren't assessed under the Plevin rules.
Customers who received a letter shouldn't be overwhelmed by the complexity of the claim because the FCA says you don't actually have to know what you are complaining about – this is down to the firms.
You will just need to make it clear that you are submitting a new claim based on receiving the letter.
It's free to make a claim but you only have until August 29, 2019 to submit it.
For more information, see our guide to what is payment protection insurance (PPI) and how to make a claim.
Have you had a PPI claim rejected? A loophole revealed earlier this year means you could be owed thousands.
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