PPI: Fact or Fiction

I am sure you are sick of the phone calls, texts, adverts, etc. from companies promoting their services to assist with your PPI claims. It seems that if you once walked past a bank on the high street then you have pretty much met the criteria to claim.

 

Whilst this seems to have been dragging on for years, the intensity of the phone calls, texts, adverts, etc has gone up a few levels over recent times……and with good reason.

 

The simple facts are:

 

- Some 64 million Payment Protection Insurance (PPI) policies were sold in the UK according to the Financial Conduct Authority (FCA).

 

- Just 12 million people have so far successfully claimed compensation for being mis-sold (which equates to 24 million policies).

 

- The FCA have set a deadline of 29 August 2019 to make a claim.

 

- £27 billion has been paid out in compensation by the banks to date, with a further £10 billion set aside for predicted future claims.

 

Clearly not all of the PPI policies will have been mis-sold and there will have been a genuine need for the individual to have the policy. However, that is not the issue. Banks need to prove that the individual had a genuine need for it, document appropriately and justify a recommendation. And that is where it all falls down……the banks collectively didn’t keep sufficient records to justify the policies and the regulator assumes inappropriate mis-selling if that is the case.  

 

With around 2/3rds of policies still not checked, expect this mess to get bigger.

 

I wonder what the PPI claims companies will turn their attention to next?