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What is PPI and the 2018 cut-off date?

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After sustained pressure from the banks, it looks like The Financial Conduct Authority (FCA) will finally put an end to the PPI scandal by imposing a deadline for all claimants to have submitted their requests. This date currently looks to be in the spring of 2018.

The banks hope an end to the scandal will start to recover public’s trust in them. Another side to the argument is that an end to the PPI scandal would allow the firms within financial services to get a firmer grasp on their outgoings. The PPI scandal has so far been very open ended in terms of how much the banks are having to pay out in liabilities.

Although the exact date of the deadline has yet to be set, it is very likely it won’t be before the spring in 2018. This means that people who have not yet complained need to do so before the final date. Any complainants who submit their case after the deadline will not have the right for it to be investigated by either a relevant firm or the Financial Ombudsman Service.

For anybody unsure if they have a claim, here’s a little reminder of the backdrop to this scandal. PPI stands for Payment Protection Insurance, banks as well as other financial institutions often sold this alongside credit deals such as mortgages. The idea was that borrowers would be protected if they were unable to make payments because of a loss of job or illness for example. However, due to loop holes in the PPI schemes, many people that had been sold the insurance weren’t actually allowed to claim the money despite being sold the insurance with that very promise. As a result, the services selling the PPI were making huge profits from the scheme.

After the mal-practice was brought to light the firms selling PPI were forced to start compensating people who had been mis-sold the insurance. To date the FCA reports that more than £20bn has been paid out to over 10m people. If we then include the figures that are not yet paid and claimed, the total bill is estimated to be more than £26bn. This figure is set to increase as well.

Currently, once a person is aware they were mis-sold PPI, regulations state that they have three years to claim. However, many people are still unaware they have a case. The banks were meant to write to customers, making it known they could be in a position to claim. Unfortunately, this was quite sporadic and many customers weren’t contacted. Alongside this, banks didn’t inform customers whose loans had already been repaid.

So now, with a deadline on the horizon, we urge anybody who has had a mortgage, loan or credit card in the last ten years to check if it had PPI attached to it. If this is the case, it may have been mis-sold and you’re entitled to claim.

What is vital with the setting of this deadline is that consumers don’t lose out on their entitlements just to let the banks move on. At Enjay Claims we understand the vitality of economic stability within our financial sector but the mal-practice has to come at a cost and consumers deserve the justice they are entitled to if they have been mis-led.

We’d hate for anybody to lose out on compensation they deserve. If you think you have a claim then get in contact with us today on Freephone 0800 6127958. We make the process as simple as possible and will act on your behalf on a no win no fee basis.

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