Since the first ever case of reclaiming money for mis-sold PPI in 1992, the extent of the PPI problem has been widely communicated across the UK, via campaigns to gain awareness about the issue. Despite the large extent of the PPI awareness campaigns, some people have failed to see the reality of the problem, getting mixed up with the propaganda surrounding the scandal, associating PPI with scams, and missing out on claiming back their rightfully owed money.
Many banks breached endless rules and regulations about the mis-selling of these products, via the use of different tactics. In many cases, clients felt as though they were forced to purchase PPI under false pretences. Lenders often told people that PPI was an essential product for their loan to be accepted; some were told that PPI would increase their chances of the loan being approved; some clients were not even told that PPI was being added on to their bills. This caused many people to spend thousands of pounds under false pretences.
As a result of this scandal, banks were forced to set aside hundreds of thousands of pounds which would be used to reimburse their cheated clients.
A PPI claims deadline of two years is being strongly considered by the Financial Conduct Authority, in order to end the claims for PPI refunds. This will be decided on in the first quarter of this year, and will mean that any PPI claim made from the deadline onwards will not be valid.
However, it has been found that out of a possible £100 billion which is owed to clients, only a tiny £25 billion has actually been claimed back. This means that a mass amount of people are still owed refunds for mis-sold PPI.
On top of these astonishing figures, it has also been suggested that the £25 billion which has been paid back to clients also includes any interest on top of their claims. Statutory and account interest usually accounts for half of a PPI refund, so the £25 billion which has been paid back actually only accounts for about £12.5 billion of the PPI refund money.
These shocking figures highlight the ongoing extent of the problem, and the amount of money which is still owed to unsuspecting clients. This research also suggests that the PPI problem is nowhere near the end, as a massive percentage of money is still owed to clients who have been mis-sold products.
With the possible deadline looming, it is more important than ever to find out if you are owed any of the money which has been set aside for repaying clients who have been mis-sold PPI.
It is not always obvious that you may be owed money for mis-sold PPI. It could have been added on to any loans account, such as credit card bills, mortgage repayments, or bank loan bills.