Pension freedoms and payday lenders could be the new PPI
The deadline for new PPI claims has passed. But that doesn’t mean you’ve heard the last of claims management firms.
After more than a decade, the payment protection insurance (PPI) scandal is over: the deadline for new claims has passed. But that doesn't mean you've heard the last of claims management firms' or, for that matter, potential scammers' nuisance calls and text messages. The claims groups have started offering to chase compensation for new problems.
The pension freedoms introduced in 2015 have created a new compensation problem: many people received poor advice when they accessed their pension fund. Payday lenders are also being targeted as "PPI set a precedent that firms could be retroactively punished for historic practices judged to be unfair, even if they weren't against any rules at the time," says Nicholas Megaw in the Financial Times.
There has been a 130% increase in complaints over historic charges to the Financial Ombudsman Service in the past year. "Radio advertisements that previously exhorted listeners to check if they had PPI are [now] focusing on mis-sold investment products and Isas," adds Megaw. Compensation could be claimed if you lost money on an investment and feel your bank or financial adviser did not properly explain the risks to you.