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PPI: Banks are set to invite customers to claim

Press release March 9, 2012 Economy

Could you be getting a letter from the bank?

The banks have finally taken matters into their own hands and approached the PPI situation head on. Over the next couple of months, the banks are expected to write jargon free, easy to understand letters to all of its customers which it believes wasmis-sold PPI; inviting them to claim back their money.

The letters are expected to trigger £3bn in compensation; more than £2bn was paid out last year alone.

PPIwas designed to cover re payments should policy holders fall ill or lose their job. As described in previous articles, this wasn’t always applicable to customers or they were unaware they were sold PPI in the first place as the premiums were rolled into their loan costs.

The Financial Services Authority has expressed concern that millions that were sold PPI, have not come forward to make a claim.  It stated that when the banks and lenders have identified “systematic problems in sales process” they must contact affected customers.

This doesn’t mean everyone who was sold PPI will receive a letter, but if you think you may be entitled to claim back mis-sold PPI, then get in touch with Consumer Finance Claims. Martin Wheatley of the FSA said this process set out by banks and lenders to approach customers who have not yet made a claim, marks a key moment in the story of mis-sold PPI.

The compensation due to be paid out from the banks sending letters to their customers could be considerably higher than what has been paid out so far. The FSA also warned that customers have just six years from when they bought the policy – or three years from when they first became aware of the problem – to make a complaint. As a result customers who receive a letter are warned to act promptly, particularly if it is an older policy, to ensure their complaint does not fall foul of any time limit.

If you think you are entitled to make a claim, don’t wait for the banks to get in touch, be pro-active andget in touch with us today to avoid missing out.