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New Time Limits on PPI Claims

The Financial Conduct Authority (FCA) is currently reviewing the claims process for mis-sold payment protection insurance complaints, and may consider imposing a deadline upon PPI compensation cases.

For most cases looked into by the FCA, a six-year time limit is activated from the day the product was purchased. Since many customers were unaware of being sold PPI, the limit has not been applied.

However, PPI mis-selling has had years of publicity, which could lead to the FCA applying the six-year limit policy on future claims. This means that, for those concerned that they have been missold PPI, time to receive compensation could be running out.

PPI, otherwise known as payment protection insurance, is an insurance sold with loans, credit cards and finance agreements. It is supposed to ensure that payments are made on the borrower’s behalf should they suffer illness or unemployment, which might usually prevent repayments being made.

However, in cases where PPI has been unsuitable for some customers, the exclusions were either not explained, or the borrower already had other methods of protecting the repayments.

The range of benefits offered can vary depending on the policy and before the FCA – then known as the Financial Services Authority – imposed tougher rules on PPI mis-selling, banks and other lenders sold PPI to their customers without an adequate explanation for its purpose or checking it was suitable for the people they were selling it to.

In some cases, banks and lenders mis-sold PPI as a compulsory add-on to their finance agreements or included it in the agreement without asking their customers if they even wanted it.

It was also commonly mis-sold to those who would have been ineligible to claim on the insurance in the first place, or provided with no forewarning of the premiums included in their repayments thanks to the addition of PPI to their agreement.

Since the scandal came to light in 2007, £17.3 billion has been recovered in compensation and currently, the Financial Ombudsman Service receives 4,000 new PPI cases a week.

You may have been mis-sold PPI if:

  • You didn’t ask for the policy;
  • You weren’t told or made to understand that PPI was optional;
  • The exclusions preventing eligibility listed in the policy’s terms and conditions were not mentioned or explained to you;
  • PPI was advertised to you as a compulsory element to your finance agreement; and/or
  • You realise the PPI is not a suitable product for your circumstances or needs

TLW Solicitors have extensive experience with claims related to mis-sold payment protection insurance.

If, like our client Mr. Atkinson, your complaint has been rejected by the bank or lender you received the PPI agreement from, we are able to take the claim to the Financial Ombudsman Service or the Financial Services Compensation Scheme for review.

The FCA are set to begin their investigation iminently and will report their findings this summer. Therefore, if you believe you have been mis-sold PPI, we suggest you seek legal advice sooner rather than later.


Contact us via our contact form or call 0800 169 5925 for more information, and make sure you avoid a potential limit on the amount of time you have left to claim.