Early discussions are taking place between the Financial Services Authority (FSA) and banks regarding an agreement on the deadline for customers being able to make claims for the mis-selling of payment protection insurance (PPI).
According to reports, the British Bankers' Association (BBA) has also met with the FSA, proposing a deadline of next summer. The BBA's proposition would supposedly be in return for the banks agreeing to finance an advertising campaign to raise public awareness of the limited time to make a claim.
A number of high street banks have pledged to set aside billions of pounds to accommodate compensating affected customers.
Both Barclays and Lloyds Banking Group announced they have incurred hefty losses as a result of PPI compensation provisions, with the total cost to banks expected to reach £25 billion.
Claiming back money for mis-sold PPI can be a bit of a minefield, particularly with an army of claims management companies (CMC)s keen to cash in on the scandal!
Here are some quick and easy tips if you think you may have been mis-sold protection for mortgage, loan or credit card products in the past:
3) Write to your provider to raise your concerns listing the product's details, the date of when you applied for or purchased the product and the reasons as to why you feel the cover was mis-sold.
4) There are no time restrictions on claiming back compensation. All providers are legally obligated to respond to your complaint within eight weeks of you contacting them. Your provider must inform you whether your claim has been successful or request further information from you.
5) Should you be unsatisfied with your provider's response to your claim, you can refer your complaint to the Financial Ombudsman Service, who can investigate further. The Ombudsman provides an independent, free service and helps consumers to resolve disputes with financial service companies. You can also contact the service by telephone on 0800 023 4567.
You can complain any time; however as banks are not required to keep records over six years old it may be easier if your insurance started or ended within the last six years as there will still be some proof on record. Even if the loan, mortgage or credit card is now paid off, you can still submit a claim.
If you wish to make a complaint you may find it useful to read our guide: "How to complain to a financial services provider".
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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