In 2011, the floodgates to payment protection insurance (PPI) claims opened, after the banks lost a landmark court case. This paved the way for millions of consumers who had taken out a PPI policy, to claim back premium payments they had made on the basis that the policy had been mis-sold.
In the years that followed, the banks and other financial institutions that sold PPI policies, forked out £38 billion to consumers. Then, in 2018, the Financial Conduct Authority (FCA) announced a deadline for PPI claims of 29 August 2019.
Following the deadline, it was widely considered that PPI claims were a thing of the past, but it now transpires that this may not be the case. Here is what you need to know:
What is a PPI Policy?
These policies were designed to cover repayments on loans and credit cards if a borrower was made redundant or found themselves unable to work.
Was the deadline not final?
The effect of the FCA deadline is that banks and other financial institutions must no longer accept PPI claims and pay-outs if they meet the criteria previously set out by the FCA. However, this deadline does not stop consumers pursuing a PPI claim through the courts.
Can I make a claim?
In 2014 the Supreme Court ruled on a PPI case known as ‘Plevin’. In its unanimous decision the court held that the non-disclosure of commission of 71.8% of the total PPI cost (that is the commission that the broker took from the deal) was unfair, meaning that the policy had been mis-sold. The court did not provide a determination on what percentage would be fair (commonly referred to as ‘the tipping point’). However, the FCA directed banks and financial institutions that the tipping point should be 50%, and this is the guidance it followed when assessing PPI claims prior to the August deadline.
Since the deadline, some solicitors and claims management companies have continued to successfully pursue PPI claims through the courts. One of these firms, Joseph James Law, told me that it was starting to see a great deal of success with PPI claims issued through the courts. Joseph James Law is urging consumers who either missed the August deadline, or received a tipping point offer, to make a claim. Those with a tipping point offer may therefore be able to claim further monies.
If you would like to instruct Joseph James Law to deal with your claim they can be contacted via their website