Today, Which? has launched a free tool that makes PPI compensation claims as easy as possible ahead of the impending 2019 claims deadline.
Our latest research* found that more than half of consumers think it’s easier to use a claims management company to make a Payment Protection Insurance (PPI) claim than go directly to their bank.
With the start of a two-year time limit for claiming compensation looming on 29 August, we’re urging anyone who thinks they have a claim to use our free revamped online PPI tool to recoup some of the £35 billion set aside by banks for the scandal.
Confusion over PPI claims
Our research found that people are put off by the prospect of complicated and lengthy paperwork, with one in three people who had a relevant financial product thinking it would be very difficult to check if they had been sold PPI.
We also found that more people thought it would be easier to claim PPI compensation through a claims management company (CMC), than direct from their bank.
We want everyone who was mis-sold a PPI policy to be compensated, and have launched our new tool to simplify the process.
The Which? PPI compensation tool
The Which? PPI tool is a simple online form that guides you through the information you need to make a PPI claim and sends your claim direct to your PPI provider, regardless of whether you have any of the paperwork or not.
You don’t have to provide lots of information upfront, which is helpful if you can’t remember if you had PPI.
And, if successful, you get to keep 100% of your compensation, whereas CMCs can take up to a third of your compensation in fees.
The Which? PPI tool has been developed closely with Barclays bank to make the process of reclaiming mis-sold PPI compensation as quick and easy as possible, while ensuring that banks have the right information to start processing a claim.
More banks signed up
Other major banks and building societies have now signed up to the tool, which has already helped consumers to claim nearly £500,000 in PPI compensation, including Santander, HSBC, RBS, Lloyds Banking Group and Nationwide.
The average payout for successful claimants using our tool is £5,371, the largest single payout was £50,006.94, which was initially refused by Santander but overturned by the Financial Ombudsman Service.
Banks upping their PPI game
Which? money expert Gareth Shaw, said: ‘For years, an inadequate PPI claims process has driven too many people to use claims management companies.
‘With a deadline now set for the victims of this mis-selling scandal to make a claim, it’s encouraging to see that some of the UK’s biggest banks and building societies are upping their game to help customers claim back the money they are owed.
‘We’re urging consumers to use our free PPI claim tool, for other banks to sign up and for the regulator to make free-to-use tools a more central part of its communications campaign.’
As the Financial Conduct Authority prepares to launch a major communications campaign alerting people to the 2019 deadline for making a PPI claim, Which? is calling on the regulator to encourage and signpost people to free tools rather than simply directing consumers to banks’ own websites.
What our PPI compensation tool users say
‘Last year, I came across a couple of loan agreement forms which had been paid in full. One ended in 2003 the other 2007. After completing the online PPI form I was awarded a total of just over £6,500 without having to pay a third party to do the same thing. Thanks Which? for my unexpected windfall.’
‘I claimed on behalf of a friend using Which?’s PPI tool and at the end of November the bank offered £5,300 in full and final settlement, which they accepted. There is no need to use a claims management company, Which?’s tool is straightforward to use.’
‘I used Which?’s tool with immediate good results. It was the minimum of trouble for me and a letter with an acceptable offer of compensation from the relevant bank arrived within 10 days.’
*Populus polled a total of 2,068 general population respondents, via an online omnibus survey between the 10th and 12th of February 2017.