The PPI deadline was set at 29th August. But with so much information out there, what did this actually mean for consumers? We explain the PPI complaints and compensation process and what changes now that the deadline has passed.
PPI explained
Payment Protection Insurance (PPI) is an insurance policy normally sold alongside loans and credit cards. It insures your repayments in case you are unable to make them due to circumstances such as involuntary unemployment or long-term sickness.
The reason you’ve heard so much about them? Between 1990 and 2010, millions of PPI policies were mis-sold to consumers. As a result, you could claim compensation from your lender for the extra amount you were charged for these policies.
What does the deadline mean?
The PPI deadline was imposed by the FCA for those looking to complain about PPI mis-selling. It was set exactly two years after new rules on the commissions charged on PPI came into force in 2017. The guidelines state that your complaint will not be considered after this date.
However, new court rulings just this year could mean there are a new wave of future PPI claims set to be launched.
Plevin, Doran and Akhtar
After precedent-setting cases including Plevin and Doran, consumers are now also able to claim compensation on the ‘undisclosed commission’ that was often added to their total capital.
The Plevin case set a threshold for these commission claims at anything over 50 per cent. The court saw this as an unfair relationship between consumer and lender. The deadline for making these complaints was August 29th, 2019.
However, you may now also be liable to receive the full amount of ‘undisclosed commission’ charged to you, as a result of a recent landmark APJ Solicitors case, Akhtar vs. Welcome Financial Services.
With consumers now potentially having new grounds to file complaints of an unfair relationship, in future we could see many more cases like Miss Akhtar’s.
What’s the average PPI payout amount?
The average PPI claim payment in 2018 was £2,004. However, the amount you receive is dependent on a multitude of factors. These include the size of your loan and the level of commission charged. This average could also rise in the future if a new wave of complaints seeking the full amount of commission are raised post-Akhtar.
The largest individual settlement is thought to be to Mike Weaver. The business owner received £247,000 for multiple business loans he took out.
The FCA’s PPI deadline was an important date in the calendar for consumers. However, we’ll continue to ensure those, like Miss Akhtar, are getting a fair deal from banks and lenders – deadline or no deadline.
If you think you may have been previously mis-sold a PPI policy, please speak to one of our expert solicitors to see whether you have a claim.