Which? is warning that consumers are potentially at risk of missing out on claiming compensation for mis-sold PPI.
A survey by Which? has found that more than a third of consumers are unaware of the two-year deadline to lodge a claim.
The Financial Conduct Authority (FCA) announced the deadline in March. It comes into effect on Tuesday 29 August and people seeking compensation will have to make their claims before 29 August 2019.
This could mean that significant amounts of money will be left unclaimed unless people take action.
Many are yet to claim back PPI
The research also found that many consumers have still not made a PPI claim despite saying that they think they might have been mis-sold PPI.
Many of those yet to claim cited concerns with the claim process as a reason for not acting.
That’s despite the average successful PPI claimant getting back around £1,200 and the latest figures from the FCA show that £27.4bn has been paid out since January 2011.
With such vast sums successfully retrieved, and many more consumers either unaware, or deterred by the process, Which? is encouraging potential claimants to use its PPI tool.
Alex Neill, managing director of Which? home products and services, said: ‘With just two years left for consumers to claim compensation for mis-sold PPI it’s worrying that so many are unaware of this deadline, while others have been put off from claiming because they think it’s too much hassle or they don’t want to pay a fee.
Use our free PPI claim tool
To help make it easier for people to claim for mis-sold PPI, Which? has developed a free online tool that provides a streamlined, stress-free way of seeking compensation that requires no paperwork.
Built in consultation with major high street banks, it enables successful claimants to keep 100% of their compensation, as opposed to using costly claims-management companies that can charge fees of up to a third of the compensation paid out.
Which? found that 14% of consumers who have still not made a PPI claim, despite saying that they think they might have been mis-sold PPI, were put off doing so because they didn’t want to pay a fee.
New Plevin rules mean more can claim
In addition to the deadline, new rules based on the Plevin high court ruling come into effect on Tuesday.
This means customers, including those who have had a PPI claim previously rejected, can claim back the difference and interest from mis-sold PPI where the cost was made up of more than 50% commission and the consumer was not informed.
This makes thousands more eligible for compensation. However, Which? discovered a significant lack of knowledge of the Plevin entitlement, with 80% unaware of this potential route to compensation.
Previously unsuccessful claimants should consider re-submitting their complaint due to the new Plevin ruling which has made thousands more consumers eligible for compensation. Act now – time is running out.