The payment protection insurance scandal has had an immense impact on the banks, as their total repayments to customers hit the £30 billion mark in January. The total figure repaid to consumers is likely to reach £40 billion before the PPI deadline in August 2019.
Lloyds Banking Group is the biggest culprit of mis-sold PPI. Its total payout is over £18 billion. But, other banks and lenders have certainly not come away unscathed. Building societies and shops offering store cards were also mis-selling the insurance to hundreds of thousands of customers. The Financial Conduct Authority (FCA) has set 29th August 2019 as the deadline for all PPI claims to be made with the appropriate bank or lender. This is to draw a line under the mis-selling scandal and encourage people to make a claim if they’ve been putting it off.
The FCA has even hired Arnold Schwarzenegger to be the face of the campaign. His recognisable voice is used with a robotic head in an advertising campaign, which is telling people about the deadline and asking them to make a decision about claiming PPI. Over 1.5 million people made a claim in the latter half of 2017. This is the highest number in four years, demonstrating that Arnie’s demands to “do it now!” is making an impact.
PPI was frequently mis-sold with credit cards, mortgages and loans, but it’s not unheard of for a PPI claim against an overdraft or car insurance, either. Bank employees were pressured into selling the insurance to consumers. In the worst case scenario, signatures were forged.
With the deadline looming, customers are being urged to act as soon as possible. Until the 2019 deadline, the banks will be busy responding to PPI claims, so the sooner you start, the sooner you will receive your money.
What is Plevin?
To add further pressure on the banks, the Plevin rule means even more people can now make a claim.
Plevin refers to Mrs Susan Plevin, who claimed PPI against Paragon Personal Finance. During the case, it was discovered that 71% of the PPI sale was a commission. The court ruled that this was a form of mis-selling and Mrs Plevin won her PPI case.
The ruling in this case opened up even more opportunities for people to claim PPI. For all future claims under Plevin, if over 50% of the PPI sale was a commission, this is classed as a form of mis-selling. Theoretically, even if a consumer was aware they had PPI, they might not have been aware of the high percentage of commission. Many more people have already made successful Plevin claims.
How Do Customers make a Plevin PPI Claim?
If a PPI claim has already been sent and upheld by the bank, consumers can’t make another claim under Plevin. But, if a claim has been rejected, consumers are able to try again under Plevin. Many banks had 67% commission on PPI sales and this was not disclosed to the customer. As such, thousands of more people are eligible to make a claim.
This means banks are facing even more claims and shelling out more money for those under the Plevin rule. If consumers want to estimate how much they could receive from a PPI claim, a PPI claims calculator can offer an approximate figure.
If you want to claim PPI because you believe that it was mis-sold to you under Plevin, do so now before the rush in 2019. Contacting the bank or lender directly is an option, but many successful claimants have opted for the hassle-free system of using a reputable PPI claims company, enrolling the help of dedicated financial experts to lead their case.