Consumers across the UK are being urged by financial expert Martin Lewis to urgently check if they were mis-sold Payment Protection Insurance (PPI) before the final deadline for claims on 29th August 2019. With less than a month remaining, Mr Lewis, founder of MoneySavingExpert.com, has highlighted the critical importance of acting swiftly to avoid missing out on potential compensation.
The Payment Protection Insurance scandal has been one of the largest in UK financial history, with banks and other lenders paying out over £38 billion in compensation to date. PPI was designed to cover loan or credit card repayments if a customer became ill or lost their job, but it was widely mis-sold, often to individuals who didn't need it, couldn't claim on it, or were unaware they had it.
Even if a consumer has previously had a PPI claim rejected, they may still be eligible to claim under new rules relating to 'Plevin' cases. This refers to a Supreme Court ruling in 2014 which stated that if a high level of commission was paid to the lender for selling PPI, and this was not disclosed to the customer, then the customer may be entitled to compensation for the undisclosed commission, regardless of whether the policy was otherwise suitable.
The Financial Conduct Authority (FCA) set the final deadline for all PPI complaints to draw a line under the long-running issue. This means that after 29th August, it will no longer be possible to submit a new complaint or challenge a previous decision, unless there are exceptional circumstances. The regulator has run an extensive awareness campaign to inform the public of the approaching deadline.
Mr Lewis has consistently advised consumers not to use claims management companies, which often charge significant fees, and instead to make claims directly to their banks or lenders. Free tools and guides are readily available online to assist individuals through the process, making it straightforward to check eligibility and submit a complaint without incurring costs.