PPI Claims Time Limit
What is the time limit on a PPI Claim? Across the UK, millions of people are looking over their loans, mortgages and credit card payment information to see if they have been overcharged for PPI or payment protection insurance. The recent scandal involving many UK banks and lending institutions has resulted in thousands of PPI claims being filed every day at the Financial Ombudsman Service and that number is growing.
What is PPI?
Payment protection insurance is basically paying for security if you should be unable to make your regular loan payments due to an unforeseen event. PPI covers such unforeseen events as becoming suddenly unemployed, injured or suffering from an illness where you cannot earn a living. When these unexpected events that are covered by PPI occur, then the insurance takes over the payments of the loan until the borrower recovers or finds new employment.
What is the scandal involving PPI?
For years, many banks and lending institutions were taking advantage of potentially millions of UK citizens by mis-selling, mis-representing or overcharging interest rates for the PPI. There were a number of ways that these lending institutions took advantage of their customers;
- Overcharged on PPI rates
- Charged PPI for customers who did not request such service
- Informed customers that PPI was mandatory when it was not
- Misrepresented what PPI could do for their credit score
- Informed customers that PPI could only be purchased at their institution for their loan
These represent only part of the scandal as there were other ways that banks and lending institutions took advantage of their customers.
How do I know if I’ve been victimized in this scandal?
The first step is getting a copy of your loan or credit card contract and a copy of your monthly bill. Next, any copy of the contract where you were explained the services of PPI if one exists. Now, if PPI was not part of your original loan and your monthly bill reveals that you are being charged, then you have a very strong case.
However, other than that it can be much harder to define on your own if you have indeed been taken advantage of by the lending institution. Barring finding inconsistencies, the actual interest rates compared to what can be legally charged may require a little research and assistance.
Is there a PPI claim time limit?
This is a growing question for many UK citizens as they discover more about this scandal and that it goes back for several years. First, it is important to know that while the government program that is designed to rectify this situation may not be unlimited, currently there is no set time limit on filing for a PPI claim.
This means that if you have paid off the loan and even used the PPI at some point, you may be entitled to getting money back if they misrepresented or overcharged you. However, it is important that you act now to get your PPI claim filed properly. By taking action now, you can get your money back sooner.