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Archive for tag: Legal Challenge to PPI August Deadline

Legal Challenge to PPI August Deadline Unsuccessful

You may recall that a claim management company was attempting to stop the PPI August 2019 deadline of being imposed. Unfortunately, the courts have ruled that there is no case to answer and that by setting a deadline, the Financial Conduct Authority are within their rights.

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Why Did the Challenge Happen?

Payment Protection Insurance (PPI) was mis-sold on a huge scale. So much so, that millions of people are now claiming their money back. The product was designed to protect the debt in the event the customer was no longer able to make repayments as a result of the loss of income due to illness, redundancy etc.

Unfortunately, the commission and large profits that the sale of PPI policies offered meant that it was sold to people who didn't want or need it. When this was discovered, the wheels came off with banks and lenders now facing a whopping compensation bill.

But, the writing is on the wall and it seems that it has been firmly etched there: there will be no new compensation claims for mis-sold PPI (sold before 2017) after 11.59pm on Thursday 29th August 2019.

There is no slippage or safety zone with this date and time. Put your compensation claim in by then or face waving goodbye to potentially thousands of pounds of YOUR cash.

A claim management company (not us!) felt that this was unfair. They weren't alone. Experts such as Martin Lewis agreed that it placed the protection of financial industry interests above that of consumers.

But the courts don't agree. They have not awarded the right to appeal against the decision and so unless the wheels come off this particular bus, the deadline is set to stay.

What Does This Mean?

It means that unless the advertising campaign commissioned by the Financial Conduct Authority does reach everyone that it needs to, there are potentially thousands, if not millions of customers who face not claiming their money back.

Many organisations believe that the FCA has underestimated the number of claims yet to be made and that the 64 million PPI policies that they say were sold in the UK is also an underestimate. What people are concerned about is the short amount of time there is for banks and lenders to process what could potentially be a huge number of claims.

If this means the system is swamped, your case could be in it.

As yet, we are still waiting to see what the Court of Appeal rejected the case against the deadline but when we do, we'll let you know.

In the meantime, you really do need to start the ball rolling on your case. If you are yet to make a claim for PPI compensation, start TODAY!