Customers will have to wait MONTHS to find out if PPI compensation has been successful as banks are flooded with claims
CUSTOMERS who submit PPI claims today may have to wait months before finding out whether or not they’re going to get a payout.
The Sun has also found that some leading UK banks are warning customers to expect possible delays for decisions on compensation due to an influx of complaints made close to the deadline.
Today is the last day for people start claims for mis-sold Payment Protection Insurance (PPI) or else risk never getting a payout.
MoneySavingExpert Martin Lewis warned that there would be an increase in the number of claims made on August 29 as “last minute Lilly and Larry’s” rush to submit theirs before the deadline.
Banks and lenders should get back to you within eight weeks of receiving your complaint, according to guidelines set out by the regulator, the Financial Conduct Authority (FCA).
They will respond to you either with a final decision or to let you know when one is likely to be made if it can’t meet the deadline.
Have you been mis-sold PPI?
ACCORDING to the regulator, it is likely you were mis-sold PPI if you experienced any of the following:
- You were pressured into buying PPI or told you must have PPI
- You were promised a cheaper rate if you bought PPI
- You were told your loan or credit application was more likely to be accepted if you bought PPI
- PPI was added without telling you
- You were advised to buy PPI that did not suit your circumstances or needs
- You were self-employed, unemployed or retired but advised to buy PPI
- You had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
- You were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
- It was not made clear that you would pay interest on the PPI if it was added to your loan
- It was not made clear that the PPI would end before the loan or credit was repaid
It means that people who submit claims today may not hear back until the end of October.
But some banks are warning that the increase in complaints could cause delays.
Lloyds, Bank of Scotland and Halifax – which are part of Lloyds Banking Group – and Santander are warning people to expect delays on decisions due to the high number of complaints.
Nationwide says that it’s seen a 66 per cent rise in the number of complaints over the past few weeks compared to June but is still prepared to process claims in the time frame.
But HSBC, Royal Bank of Scotland, NatWest and Barclays all told The Sun that they are prepared for any last minute influxes and will process claims as normal.
Customers have until 11:59pm tonight to start a claim if they’re applying online but deadlines vary between 6pm and midnight for complaints made over the phone depending on the lender.
For some banks, it’s too late to submit a claim made by letter while others have previously said they’ll accept it as long as it was posted by August 29.
You can make a complaint in branch but you’ll need to do it before the bank closes.
What happens if your claim is rejected?
BANKS have been fined repeatedly for failing to deal with complaints properly and some cases may have been wrongly rejected.
If your claim has been rejected by your bank or lender then take it to the Financial Ombudsman Service.
The Ombudsman is an independent service that settles disputes between financial providers and consumers.
It’s free to use and will decide whether your provider should have paid up.
You have six months from receiving the final response from the bank or lender to get in contact with the Ombudsman.
You can complain to the Ombudsman after the August 29 deadline providing your initial claim took place before this date.
Make sure that you get confirmation that you’ve started the process, by recording the reference number or by taking down the name of the person you spoke to either in branch or over the phone.
You should also jot down the time you made the complaint and ask them to assure you that the claim has been triggered.
This is because if a lender refuses to look into your case it can later be escalated to the Financial Ombudsman Service.
If websites crash today due to demand, Martin Lewis advises you make a record of an instances where the sites malfunctioned.
He said: “Take a timed screenshot if possible of any page that isn’t working, and if not at least take notes of what you did and when you tried, because almost certainly the regulator will have to ensure that people who miss the deadline because of bad bank tech will still be able to get their claim in, and we will be pushing for it to do so.”
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An estimated 60MILLION policies were mis-sold over the past three decades to customers who were promised cheaper rates if they bought PPI or it was added without them knowing.
Those who’ve already received compensation are also advised to claim back tax on the payout because you could be owed hundreds of pounds.
Last month, several banks and building societies agreed to submit PPI complaints for you to ensure that tonight’s deadline is met.
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