Consumer Watchdog Which? urges customers to use its free tool to recoup PPI payments owed by banks
With just over a year and a half left to claim for mis-sold payment protection insurance (PPI), Which? is urging consumers to use its free tool to recoup some of the £38 billion they may be owed by the banks.
As the total amount set aside by the big five banks – Lloyds, HSBC, RBS, Barclays and Santander – hits close to £38 billion, Which? found the median amount of money paid out for a claim was £1,600.
In a survey of 995 people who claimed for mis-sold PPI through the consumer champion’s free tool, a quarter (23%) had their claim upheld.
Of those surveyed half (49%) of respondents were motivated by media coverage and one in five (19%) by a friend or family member. One in 10 (9%) were motivated to make a claim by the Financial Conduct Authority’s (FCA) advertising campaign featuring Arnold Schwarzenegger.
As the deadline of the 29 August 2019 looms for people to claim for mis-sold PPI, the amount paid out since January 2011 is £28.8 billion.
Consumers can also claim for ‘Plevin’, following a recent court case – even if they were not mis-sold PPI – this is the difference and interest from mis-sold PPI where the cost was made up of more than 50% commission and the consumer was not informed. These claims can be made by anyone who has previously had PPI, making thousands more eligible for compensation.
However, Which? discovered a significant lack of knowledge of the Plevin entitlement, with 80% unaware of this potential route to compensation.
Gareth Shaw, Which? money expert, said: “With billions of pounds in compensation still set aside to deal with the PPI mis-selling scandal, we’re urging people to use our free PPI claim tool before it’s too late.
“If you’ve had a complaint turned down by a bank and you disagree with the decision, you should take this up with the Financial Ombudsman Service.”