Is there a PPI time limit?

Payment Protection Insurance (PPI) has been rumbling on for several years and, finally, it seems that the Financial Conduct Authority (FCA) are about to announce (within the first quarter of 2017) a time limit when PPI claims are to be finally submitted.

What is PPI? 

Payment Protection Insurance (PPI) is cover that was sold by the majority of lenders in the late 1980s, 1990s and 2000s to cover their clients’ borrowing. This was taken out against credit cards, loans, mortgages, hire purchase (HP) and store cards.   Unfortunately for the clients, what they did not realise is that the Banks were making huge amounts of money from selling the PPI and it was ultimately an appalling product that was expensive and rarely beneficial to the client.

Why is there a PPI time limit? 

It is a good question to ask why there is a PPI time limit being introduced.  It is calculated that there could well be a further 30 million PPI policies which remain untouched or checked by clients.  As such, the question has to be; is it fair setting out a time limit and, should this process just continue?

On the flip side of the coin, you have got to be, quite frankly, living under a stone not to know or have heard about PPI.  However, the way that it has been promoted does leave a bad taste in people’s mouths – rather than people being encouraged to check with their lenders.

Realistically, most people are to blame for the promotion of the mis-selling of PPI and looking at and addressing it.  Claims Companies, for their over-zealous and unhelpful marketing and the Banks’ negativity in helping clients who approach them direct.  This is compounded by an ineffective regulatory regime – all of which means that clients can lose out.

Who decides upon the time limit? 

The time limit is decided upon by the Financial Conduct Authority (FCA) which has been undertaking a review with lenders, claims companies and other people who deal with individuals on a charitable basis (such as Citizens Advice Bureau and other advisory bodies).  It is not known for sure that a time limit is going to be put in place and each time we appear to be near to a date being established, it is delayed further whilst other reports are considered.  There is also an indication that the time limit will be challenged legally, but needless to say there is a great possibility that a time limit will be put in place.

Regardless of this, you must now check whether any facilities that you have had in the past had PPI attached to it.  Whilst there is likely to be a period of another two years (at least) to make sure that any potential claim is submitted (that is submitted and not rectified), there is no need to delay – just get on and do it.

When is a time limit for PPI expected? 

The PPI time limit is expected to run until the end of 2019.  During this time and leading up to the end of 2019, there will be a pre-agreed advertising program funded by the Banks in order to encourage people to check whether they have had PPI.

It is essential that this is done and, despite the Banks’ reluctance (despite what they say in their adverts) to make sure that all old files are explored with the Banks and any lenders that you had throughout the 1980s, 1990s and 2000s to establish if PPI was applied and, if it was, look to recover it.

What we can do 

We work on behalf of clients we have been dealing with banking disputes since the late 1990s following working with a main High Street Bank.

We deal with many clients who do not have paperwork, account numbers or details.  Many do not know whether they have had any PPI applied or not.  We will however establish whether any PPI was applied and, if it is, look to obtain a refund on your behalf.  It is only when we are successful that our fee will be charged and that fee will be 20% plus VAT (equivalent to 24% inclusive) of any refund that is made.

If there is no refund, or no PPI is recovered in any way, shape or form, there is no fee to pay.