Don’t miss the PPI claims deadline

Make sure you file your compensation claim for mis-sold payment protection insurance by 29 August. 

PPI  claim form © Alamy

Don't pay a claims firm to fill in these simple PPI forms

PPI claim form © Alamy

Since the payment protection insurance (PPI) scandal began in 2006 more than £35.7bn has been handed out in compensation. Claims-handling firms have grown rich and banks have seen their profits severely dented. But an era is soon coming to an end. You only have until 29 August to submit a new PPI claim. Any received after that will automatically be rejected.

Almost a third of people owed money for mis-sold payment protection insurance have yet to make a claim, says Adam Williams in The Daily Telegraph. As many as 64 million PPI policies were sold in the UK, mainly in the 1990s and 2000s. They were sold alongside loans, credit cards and other borrowing with sales pitches telling people it would help them meet their repayments if they became ill or unemployed. Yet policies were often sold to those who were not eligible and exclusions in the small print meant many people would never be able to make a claim.

Research by the Financial Conduct Authority (FCA) has found that "72% of UK adults hit a significant milestone' during the 1990s and 2000s that might have required taking out a financial product linked to PPI", says Rupert Jones in The Guardian. "Forty-nine percent bought a car, 35% purchased a house and 27% got married. More than four in ten people recalled taking out credit to help fund these, including products that commonly had PPI attached, such as loans, mortgages, credit cards or store cards."

Mis-selling happened in a number of ways: you were mis-sold PPI if you were told it was compulsory to take it out, if it was added without your knowledge, or if it wasn't a suitable product for your circumstances. The latter restriction could apply if you were unemployed, self-employed, retired, or had a medical condition that would stop you from working all of which could have meant you wouldn't have been able to claim on the policy.

Getting your money back is a simple process. There are plenty of claims-handling firms offering to do the paperwork for you, but they can take up to 20% of your compensation. Given the average payout is £1,700, you'll be paying them £340 to fill in a couple of forms. Better to do it yourself. The FCA has a list of providers that sold PPI on its website, so you can check if anyone you've had products with is on there. You can then go to your provider's website to fill in a claims form, or download a template letter from moneysavingexpert.com or which.co.uk and send that off.

"It's free to do yourself and you don't need to worry about paperwork," says Emma Stranack who runs the FCA's PPI campaign. "You just need your date of birth and previous home addresses to get started."

Recommended

Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Best regular savings accounts – January 2023
Savings

Best regular savings accounts – January 2023

You can earn an attractive rate on the best regular savings accounts. We tell you the best on the market to take advantage of right now
27 Jan 2023
Equity release v downsizing – which is best?
Personal finance

Equity release v downsizing – which is best?

Equity release hit a record high in 2022. But is downsizing a better way to hold on to your money?
27 Jan 2023
Self-assessment tax returns: what you need to know about getting your tax bill right
Income tax

Self-assessment tax returns: what you need to know about getting your tax bill right

Understanding how self assessment works can help you ensure you pay the right amount of tax, as well as avoid penalties for missing the deadline.
27 Jan 2023

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023