Glasgow: 0141 844 0017 * Edinburgh: 0131 224 0094 * Lanarkshire: 01698 286 463

Archive for tag: What PPI Compensation Deadline

What PPI Compensation Deadline?

This and many other questions answered by experts here at Payment Protection Scotland!

My friend was telling me I might be too late to claim PPI compensation from my bank as there was a deadline. Is this the case?

Banks and lenders were told in 2013 to send letters to customers they know had payment protection insurance (PPI) and to invite them to make a claim for compensation. This doesn't mean that the policy was mis-sold to you, but it was a way of telling people that they had PPI and it may not have been sold to them by following all the rules.

But, this did impose a deadline of sorts. Following consumer law, if a bank or seller contacts you to tell you there may be a problem with a policy or product they sold you, and you agree, you have three years from the date of the letter within which time you can claim compensation.

If the deadline passes and you decide to claim, you may find the bank or lender will not honour your claim.

If you did receive a letter from a bank or lender, you will need to make a claim within three years of the date thus, for many people, they will need to submit a claim in 2016 or risk losing out on compensation.

I have been thinking of making a claim for PPI compensation myself but wondering if it would be more advantageous to claim through a claim management company. Are there benefits to using such a company?

Claim management companies, also known as CMCs, deal with all kinds of products and compensation claims, and not just PPI. The mis-selling of PPI and the subsequent claim culture has spawned a new era of CMCs, some new to market place and other established companies created specialist PPI 'arms' to deal with such claims.

You can claim PPI without the help of a company or solicitor but some people prefer to use such a company as they feel it will be too stressful, too time consuming and so on. For some people, their financial affairs are complicated and feel that an expert team will be able to handle it better.

A CMC cannot process or fast-track your claim - despite what their advert may say! - and they will charge a fee, like many other professional services do. Always check what this fee is, how and when they charge it (never pay up front) and always opt for a company with a no win, no fee policy.

Do you have more questions? Call Payment Protection Scotland for the answers!