| PPI Deadline

The Financial Conduct Authority (FCA) launched a high profile advertising campaign that featured Arnold Schwarzenegger. The campaign was meant to warn the people of the UK regarding the deadline of the PPI reclaims (which is August 29, 2019).

However, it was recently discovered that millions of people who were mis-sold the PPI policy might have less time to get their compensation. The reason for this is, an earlier effort made by the banks to alert customers those were mis-sold, to automatically trigger an earlier deadline.

Payment Protection Insurance (PPI) is an insurance policy that is sold alongside the loans, credit cards and mortgages. It is mainly designed to cover the repayments in the events of an accident, sickness or unemployment of the consumer. However, over the years, this policy was largely mis-sold by most banks and lenders to its consumers.

Why many consumers might face an earlier reclaim deadline?

While the FCA is largely promoting its advertising campaign regarding the deadline of PPI claims which is August 29, 2019, people who could be owed compensation face having to complete their claim long before then.

This is because, between the year 2013 and 2015, firms practically wrote to almost 5.5 million people who were at high risk of being mis-sold PPI but had not yet claimed for refund.

However, some of these letters that are even known as redress letters, offered money to people upfront. Whereas, many of them which are known as contact letters, warned the people that they had three years from the date they received the letter to make the claim. Furthermore, it is not confirmed that the deadline now imposed by the FCA is applicable to these customers as well.

If you observe, there are no accurate figures as to how many people face an earlier deadline for their claims. The FCA is said to have a breakdown of how many of the 5.5 million letters were contact letters (in which case an earlier deadline is applicable) and how many of those letter were redress letters (in which case, the deadline imposed by the FCA is applicable).

The FCA is said to have assumed that an estimate of about 30 per cent of people might have responded to the redress and the contact letters, the time they received it.

Even though the exact figure is not known, the possibility of many claimants having to face an early deadline still remains. Moreover, the advertising campaign of the FCA has no special mention regarding this issue.

However, it is said that the early deadline might be eight months prior to the deadline imposed by the FCA. There might even be a possibility that in some cases, the deadline could have already passed. This is especially dependent on when the consumer received the letter.

How to know if your deadline is early?

Consumers have to face an early deadline if they were among the people who were sent a contact letter by their banks or the lenders between the year 2013 and 2015. This is a letter, which would have explained to the customer that they could have been mis-sold PPI and that they had three years to respond and thus the deadline for these customers will be three years from the date the contact letter was recieved, rather than August 2019.

If you don’t recollect receiving any such letter then to be on the safer side, you might as well contact the firms that may have mis-sold PPI and ask them if you were sent a letter or not.

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