Benefits of claiming PPI before the deadline
You’ve no doubt heard about it by now: the PPI deadline. Our televisions and billboards are plastered with Arnold Schwarzenegger’s robotic head.
The deadline of 29th August 2019 has been set by the Financial Conduct Authority (FCA). The aim of the deadline is to encourage those who haven’t yet claimed to do so, and draw a line under the long-running PPI saga. Now is the time to find the best PPI claims company or dig out your old paperwork yourself and make a claim.
The task of making a claim can, at first, seem onerous and long. But it’s 100% worth checking for evidence of mis-sold PPI.
The average claim amount is £1,700. However, many people have received more than this after finding PPI on multiple products. PPI was mis-sold with credit cards, mortgages, loans, store cards and even some overdrafts.
What are the benefits of making a claim, and how can it help you?
It’s your money!
You need to remember that checking for PPI is checking for your own money. The banks widely mis-sold the insurance and the money is rightfully yours. A PPI claim refund will consist of the money you paid for the policy, plus interest you paid on the policy and statutory interest to compensate for you being deprived of your money.
It can pay off debts
Debts come in many forms; mortgage repayments, credit cards, payday loans and more. The money from a PPI refund can help to reduce these substantially. Having the money to pay off credit cards is an excellent feeling. Even if you have a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA), you are still able to make a PPI claim and use the money to offset the payments.
You could receive a refund on the commission
A new rule means that even more people are eligible to make a claim. The rule is known as “Plevin” and refers to the amount of commision on a PPI policy. If there was over 50% commission on your PPI policy and this was not disclosed to you at the time of the sale, you can receive a refund of the additional commission.
At the time PPI was sold, it was common for banks to charge 67% commission on a sale — meaning you would be eligible for a 17% refund.
Always check PPI claim company reviews
If you decide to use a claims company to handle your case, always check PPI claim company reviews. This offers an insight into the company’s customer service and how it handles claims.
Due to new Government regulations, all claims companies now charge a maximum fee of 20% + VAT on successful claims — providing a fairer price for consumers who wish to use this service. Many reputable companies charge below this price, without compromising on the quality of service.
Don’t delay your claim
August might seem like a long way off, but the sooner you start, the sooner you will receive your money. The banks are likely to be even busier in 2019 as the deadline nears, so starting now is worthwhile.
If you can’t be bothered to make a claim or simply don’t have the time, it’s advisable to find the best PPI claim company. A reputable company will do everything for you, from finding evidence of PPI and making the claim, to chasing the relevant bank or lender.