It has been estimated that the majority of people mis-sold payment protection insurance (PPI) may not yet have made a claim.
The Financial Conduct Authority (FCA) has set a deadline of 29 August 2019, for the final PPI claims to be made, and is now setting up an advertising campaign using Arnold Schwarzenegger to highlight the deadline.
?27 billion has already been paid out in compensation for the mis-selling of PPI, with major banks having set aside ?37 billion.
PPI was supposed to cover repayments of loans when policyholders were unable to from illness or loss of employment.
However, many consumers who did not want or need PPI, or indeed would never have qualified to make a claim on the policy, were mis-sold PPI insurance during the 20-year period from 1990 – 2010.
The resulting compensation scheme has confirmed PPI to be the largest financial mis-selling scandal in the history of the UK. A total of over 64 million policies were sold during the 20-year period.
The ?42 million advertising campaign, launched this week, features an animatronic model of Arnold Schwarzenegger’s head, with a voiceover urging people to ?make a decision? on PPI and ‘do it now’.
The campaign is being financed by the 18 banks, building societies and credit card providers which sold the most PPI.
Andrew Bailey, chief executive of the FCA, said: ‘Our campaign aims to cut through the noise on PPI. We want to encourage people to decide whether to find out if they had PPI and whether to complain or not.’
Meanwhile, a ruling by the supreme court has also given fresh hope to over 2.4 million consumers whose PPI claims were initially rejected.
The supreme court case, known as the Plevin case, dealt with the case of a financial company’s client not being made aware of a commission being paid when they were sold PPI.
The court agreed that the company’s failure to tell its client that it was receiving a large commission for the sale was unfair. Now the FCA has ruled that banks should have declared its commission if it was over 50%.
If they did not declare it, then the customer is entitled to the return of any commission over 50%, plus interest, even if the PPI was not mis-sold.
More information on PPI and how you can claim is available on the FCA website.
A free phone line, managed by the FCA, can be called on 0800 101 8800.