How long can you expect to wait for a decision on a PPI Claim?
The question “how long does a PPI claim take”, is probably the question we get asked the most. Whilst there can be no guaranteees, so don’t believe a company that claims they can guarantee an answer inside a certain timeframe, there are rules that banks and lenders must abide by when dealing with PPI claims and complaints.
Obtaining information in order to launch the claim – 40 days
If you are unable to provide a copy of your agreement, and most people can’t, then we would request information from your lender. This information will include whether Payment Protection Insurance, otherwise known as PPI, was added to your mortgage, loan, hire purchase agreement, credit card or store card. We ask the bank or lender to provide information on all of your accounts. The reason for this is that many banks in the past would only investigate one account, yet another tactic lenders used to try and squirm their way out of paying fair compensation in this scandal. Thankfully our expertise and experience within the PPI industry has enable us to set up special relationships with many banks and lenders. This generally allows us to obtain information faster than the usual 40 days that customers can.
Case launched against lender, awaiting a decision – 8 weeks
Once a bank or lender receives the complaint against alleged mis-sold PPI they are legally obliged by their regulator to complete their investigations into the complaint and issue a final response on the matter within 8 weeks. Some lenders don’t take this long but the majority will drag the process out as long as they can.
Complaint upheld, awaiting payout – 4 weeks
Once a complaint has been upheld a lender will generally pay out in approximately 4 weeks. Now there are no specific guidelines so this can vary but the rules state that redress (compensation) should be issued “promptly”.
What if a lender rejects the complaint?
Unfortunately most lenders reject valid complaints. It’s simply a stalling tactic in the hope that you will go away. Don’t take no for an answer. Lenders routinely reject valid PPI complaints because it is financially beneficial for them to do so. It is estimated that 9 in 10 customers who receive a rejections don’t take the claim any further. If you are one of these then I ask WHY?!!! This is where Your Money Claim come in. Lenders don’t like dealing with reputable Claims Management Companies such as Your Money Claim as they know we are fully aware of their tactics and we won’t give up. Rejections should be escalated to the Financial Ombudsman Service without delay. They are an independent government body that investigates complaints against banks and lenders and they will review the case. You can find complaints data published by the Financial Ombudsman Service that is further evidence that lenders continue to attempt to cheat their customers out of compensation they should have.
Case with Financial Ombudsman Service – 12-24 months
I know!!! It’s a long time to wait but again this is down to the sheer number of complaints being rejected by lenders. It’s well worth persevering though as the majority of PPI claims that are escalated to the Financial Ombudsman Service are found in favour of the consumer (YOU!).
So why use a Claims Management Company?
Banks don’t like us for one, as we don’t give up. We know the tactics the bank use. We will obtain all the information required and we will ensure that any offer of compensation has been calculated correctly and the lender hasn’t tried to squirm out of paying a fair amount as, believe me, this happens. So, there you go, I hope this has answered the question “how long does a PPI claim take?” The question I now have is why wait?!