PPI – The Most Frequently Asked Questions Part 2/8
In part two of this series of the most commonly asked questions about PPI we’re going to look at when the mis-selling started, why it was mis-sold on such a colossal scale and whether or not there’s a deadline for you to have made your claim by.
Why has PPI been mis-sold so much?
A number of years ago, advisers who were actually just sales staff were given huge incentives to sell PPI wherever they could, due to the huge profits generated for the banks by PPI.
A number of these staff members were under great pressure to hit targets and to sell this product wherever they could that they strayed far from the truth when it came to selling it.
Those who were selling PPI were more often than not, trusted and established financial institutions which led to people taking things out that they didn’t in fact need which then left millions of people with mis-sold PPI.
When did the mis-selling start?
Going as far as giving a specific start date, there isn’t really one as the issues with mis-selling have been around for a long time. People were being warned about it as far back as the year 2000, some people even before that as it’s not uncommon for claims to have started back in the 1990s and here at Your Money Claim, we’ve even had successful claims that have dated back to the 80s.
The financial regulator started fining PPI companies back in 2006, almost 10 years ago but nothing really changed or improved for the people who had been mis-sold until 2011.
Is there a PPI deadline?
No, there isn’t a time limit or a deadline on PPI or any other product that you may have been mis-sold. However, banks may try to argue that if the insurance has not been active within the last 6 years, or it’s been over 3 years since you would have realistically known you have reason to complain, the claim should bee disregarded due to the statute of limitations. Most of the time we are able to argue against this but we highly recommend you start a claim as soon as possible to avoid this. So, to clarify…
- If your loan / mortgage / card etc started within the last 6 years then the claim should be pretty straightforward.
- If your loan / mortgage / card etc started longer than 6 years ago, but you were still paying it within the last 6 years then again there shouldn’t be a problem with the claim.
- If your loan / mortgage / card etc was settled more than 6 years ago then your lender is not legally obliged to retain documentation regarding the sale of the PPI policy. In the main though, we find most lenders retain documentation for much longer periods. Your lender may argue that the complaint should be barred on the grounds that it’s over 6 years since it was settled, but this argument is generally overcome if you were not aware you had reason to complain until recently.
That about wraps this post up and brings part two to an end. Keep your eyes peeled for part three coming soon! If you missed part one, then click the link at the bottom and catch up.