Get your PPI claims in quick as it looks like the regulator is in talks with the banking industry to set a deadline of this summer for claims.
It seems that the regulator is sympathetic towards the banks, says a report in The Times, that there would be an endless stream of claims. And that the end cost to the banks could be about Â£25 billion, which is almost double the Â£13 billion they have already set-aside for the claims.
The banking industry’s previous greed for profit is now hitting their ability to lend and help the economy today. But the money will find its way into the hands of the people who will then either pay down debt with it or buy new stuff or maybe save/invest it.
The plan is for the banks to finance a huge publicity campaign to ensure that the general public is aware of the end-date for any new claims.
The talks are understood to be at an early stage but one route would be to make the new rules mirror existing claims rules where any claim must be brought within six years of the mis-selling, or within three years of becoming aware if it if those six years have passed.
Looking at the expected rise in complaints and that consumers are now lodging some 5,000 cases with the Financial Ombudsman Service (FOS) each week you can get an idea of just how much money the banks made out of selling pap to ordinary people. And remember, those people that refer their cases to the FOS have already had their claims turned down by the bank they are claiming from.
There are many people out there who have not yet made a claim for one reason or another.
It can be a simple case of walking into your local branch, asking for a list of loans with PPI added that you have ever had and then writing to the bank’s complaints department referencing those loans. The bank will then write back and should enclose any forms they need you to fill in. They have eight weeks to respond from the date of the complaint.
If your claim is turned down you can then go to the FOS.
You can use a claims company if you don’t feel confident about doing it yourself, but be aware there are fees involved, which will eat into any amount you get back. Also acquaint yourself with any clauses in the small print prior to signing anything; some of these can bite you. Remember
After making your claim you might be phoned by one of the bank’s complaints team before they get into looking at your complaint. They sometimes then send a letter saying that they cannot deal with this within the eight weeks (as they are snowed under by all those other claims) but will get back to you as soon as they can.
So it appears that the banks can endlessly milk the public with scammy products (well, until they get caught out that is) but the public doesn’t get a fair shot back. If the banks want to end this then they’d better clean up their acts across the board.