What is the PPI time limit?

What is the PPI time limit? 

A Payment Protection Insurance (PPI) time limit has been put in place by the Financial Conduct Authority (FCA).  All PPI claims will continue to be allowed up to the end of August 2019.  If you need to make a PPI claim, then it is important that you do this and before the time limit date set.

Why is the FCA setting an end date? 

The FCA is setting an end date to basically protect the Banks by stopping any further PPI claims and mounting uncertainty with the Banks from the wholesale mis-selling of PPI that they got up to in the late 1980s, 1990s and early 2000s.  Many people believe that the time limit is an appalling abuse of power and that it is inappropriate.  It is believed that further stringent measures should be taken to protect customers from the mis-selling that took place over the last three decades.

However, these arguments are going unheeded so far and therefore, there is now no excuse not to make a claim, regardless of whether you know if you had PPI applied to any facilities (old or new) in the past.

What do you need to do? 

You should ask yourself the following questions: –

  • Have you claimed back PPI before?
  • Do you, or did you have an old credit card or loan?
  • Has the credit card or loan facility finished?
  • Do you think you ever had PPI applied to a facility?
  • Do you ever think you did not have PPI applied to a facility? 

It is important that if you have not already made a claim in relation to mis-sold PPI that you ask yourself these questions and check whether PPI was applied to any facilities you had in the past, whether they are open or closed, old or new.

It will be no good if at the end of 2019 you start thinking you had better check an old credit card facility that you had in the late 1990s because by that time – it will be too late!

It is important that you check now to avoid disappointment and to avoid the rush.

What is PPI 

PPI is a form of insurance that was applied to credit cards, loans and other facilities, which was mis-sold by the major lenders over the last three decades.  It was sold on the belief that the loan facility would be protected.

The lenders did not tell customers however, just how difficult it was to make any claim upon the PPI and, in most circumstances, only around 10% of the people claiming were able to make successful claims.  They also did not adequately inform customers of the limitations of any potential claims or indeed how much the PPI itself cost.

PPI itself was very costly and, in many cases, represented between one quarter to one-fifth of the overall borrowing facility.  In addition, the added interest that you had to pay on your premium made PPI extremely expensive.

Why is there an urgency to look at PPI? 

There is an urgency to look at PPI now because a deadline has now been put in place, albeit at the time of writing this it will be just over 2 years’ time.  There will however come a point when a mass frenzy will want to look into PPI prior to that date.  Therefore, if you have not already checked to see if you have ever had PPI (and it is a free check that we can undertake on your behalf) then there is no excuse not to start your search/claim as soon as possible.

Why is it important to check if you had PPI? 

The FCA considered when deciding a time limit also announced that 80% of PPI policies that have been taken have not been assessed for mis-selling.  Therefore, all these huge losses and the numbers the Banks are posting is only in relation to 20% of these policies actually having been looked into!

Therefore, if you have not checked if you have had PPI, how can you know that some was not applied without your knowledge?  This has happened on many occasions, so therefore, if you did have any borrowing in the late 1980s, 1990s or early 2000s (regardless of whether you have any paperwork or knowledge if PPI was applied, or not) then we can check on your behalf to see whether PPI was applied.  If it was, we can then approach the lender with regard to looking at the sales process that took place when selling the product to you.

Martin Knipe