The mis selling of Payment Protection Insurance (PPI) policies alongside a home owner loan, personal loan or credit card, has been one of the biggest scandals to hit the banking industry in many years, with millions of people claiming for policies they took out at the same time as a loan, which in some cases, they did not even know they had.
Although there have been a huge number of claims for mis sold PPI alongside a loan or other credit agreement over the course of the past few years, it is thought that only around one in five PPI loan customers who are eligible to claim, have done so.
But now, people who have taken out such a policy at the same time as a loan and believe they may have been mis sold, should claim sooner rather than later, as the banking industry has requested that a deadline should be placed on the ability to claim for a PPI policy.
The British Bankers Association (BBA) have written to the financial regulator, the Financial Services Authority (FSA) asking for a cut off point for PPI loan claims, with a suggested deadline of summer 2014, after which time any claim would automatically be rejected, if the request is approved.
The BBA has said that is would provide a comprehensive advertising campaign to make people aware of the deadline for personal loan and credit card customers to make a claim before the deadline expires.
Although the banking industry has already paid out more than £8 billion in compensation for mis sold PPI alongside a loan, it is thought that this is only a small fraction of the total number of potential claims.
A spokesman for the BBA said “We are working with our members on a number of aspects of PPI complaints. Discussions with the FSA to clarify the parameters of their complaints handling guidance are ongoing. We are unable to comment further at this stage.”